Balaji Srinivasan says Bitcoin to hit $1mn soon: Here's why
What's the story
Balaji Srinivasan, entrepreneur and former CTO of Coinbase, has made a bold prediction that might be music to the ears of crypto investors. According to the tech investor, the price of Bitcoin will soon hit $1 million courtesy of hyperinflation in the US. He made the bold claim while accepting a wager by James Medlock on whether the US will experience hyperinflation.
Context
Why does this story matter?
Srinivasan's prediction comes when the world is reeling under the after-effects of two bank collapses in the US. Add the Credit Suisse situation into the mix, and we have a global finance sector with very low morale. The US has also been dealing with inflation. Although the Federal Reserve has said inflationary pressure will ease, some people see it as systemic.
Bet
Medlock bet $1 million on the US not entering hyperinflation
Medlock, a social democrat, put forth a challenge on Twitter. He bet $1 million on the US not entering hyperinflation. When asked by a user why he was talking about hyperinflation, Medlock alluded to a tweet by Srinivasan where he said, "hyperinflation is happening - now." Srinivasan responded to Medlock's challenge by accepting the bet.
Twitter Post
Medlock challenged those who think hyperinflation is near
I'll bet anyone $1 million dollars that the US does not enter hyperinflation
— James Medlock (@jdcmedlock) March 16, 2023
Acceptance
Srinivasan set a 90-day term for the bet
Srinivasan accepted Medlock's bet and added a term of 90 days to the wager. He believes the US Dollar is heading toward a massive dip in value in the coming days. "Just as in 2008, bankers lied," Srinivasan drew comparisons with the global financial crisis of 2008. His advice to deal with the drop in Dollar's value- buy Bitcoin.
Claims
Printing more money indicates hyperinflation: Robert Kiyosaki
Srinivasan isn't the only person who believes the US is nearing hyperinflation. Robert Kiyosaki, the author of the popular book Rich Dad, Poor Dad, believes inflation is now "systemic." According to him, the US would print more money to bail out banks, increasing inflation. The Fed and FDIC are indicating hyperinflation by continuously printing money, he added.
Realistic
90 days are too less for a drastic change
Srinivasan might be on to something with his hyperinflation prediction. However, Bitcoin reaching $1 million in 90 days means a rise of around 3,600%. That would require something more extreme than the fear of hyperinflation. A collapse of the banking system of the US and Europe, on the other hand, could overshadow Bitcoin, said venture capitalist Adam Cochran.
Gimmick
Srinivasan's prediction could be a gimmick to garner attention
Srinivasan's prediction could also be a gimmick. His claim has started long conversations on Twitter and elsewhere about hyperinflation and Bitcoin. Maybe that's what he wanted. Considering the struggles the crypto industry went through the last year, this could be an attempt to garner more interest. He might be trying to manipulate Bitcoin's price.
Twitter Post
Srinivasan increased the bet to $2 million
Here are the remaining references, as Twitter has a limit on the number of links in one post.
— Balaji (@balajis) March 17, 2023
I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. See my next tweet. Everyone else should https://t.co/R3lQp7Ffdt… https://t.co/KFnHvotLpK pic.twitter.com/ABxBmYmv9i