Balaji Srinivasan, former CTO of Coinbase, pays out his $1M bet ahead of time as Bitcoin is nowhere close to his price target of $1,000,000. The bet is closed now, and Balaji has paid $1.5 million in total to 3 different entities as a settlement. However, this doesn’t change his views on the crypto industry and fiat currencies. Balaji is of the firm opinion that something major is wrong with the world economy, and a ‘fiat crisis’ is just unavoidable.
Balaji’s Bet and Prediction
Balaji is a well know personality in the crypto industry and his association and work in silicon valley. So, he is not just some random youtube or influencer giving out price targets that do not make sense. So, on March 17th, when he tweeted that he expects the price of Bitcoin to rise to $1 million in the next 90 days from around $26,000 at the time, everyone was shocked. This was not just a simple prediction, as he bet on it by placing $2 million in an escrow account. Balaji promised to exchange 1 bitcoin with $1 million after 90 days, and 2 people actually accepted the bet.
Most of the internet obviously believed that this was a crazy price action and not feasible. Even many famous personalities like Cathie Wood also talked about Balaji’s prediction and agreed that Bitcoin would reach $1 million, but it will take much longer. She said it is quite possible by the end of this decade.
However, many people didn’t understand where Balaji’s price prediction was coming from. If Bitcoin acted alone, this price target would be impossible to achieve. So, Balaji was not only predicting the rise of Bitcoin but also the collapse of the US dollar and also a banking crisis. If hyperinflation happens, then Bitcoin reaching $1 million is not that big of a deal, as its demand will rise immensely.
Balaji gives up on the bet
On May 2nd, Balaji tweeted that the bet had been closed, and he had paid out $500,000 to Bitcoin core developers, $500,000 to a non-profit charity, Give Directly, and another $500,000 to a Twitter user hyperinflation doubter.” Balaji made it clear that he is not in the business of just burning his own money. However, he closed his bet ahead of time to give the message that something was majorly wrong with the economy.
He wrote, “I spent my own money to send a provably costly signal that there’s something wrong with the economy and that it’s not going to be a ‘soft landing’ like Powell promises — but something much worse.”
I just burned a million to tell you they're printing trillions. pic.twitter.com/pX5622rjUO
— Balaji (@balajis) May 2, 2023
Balaji still believes that as hyperinflation hits the United States and people rush to buy Bitcoin as a store of value, its price will rise to $1 million sooner than later. In Balaji’s latest tweet, where he uploaded a video, he pointed out things like past collapses of economies, the debt ceiling, the chances of the US defaulting, and the banking crisis with 4 major banks having already collapsed. Then there is the real estate crisis, the bond crisis (2022 has been the worst year for bonds), Insurance companies are under pressure, fiscal crisis, defaults in auto loans and student loans, and many more.
What are your thoughts as Balaji pays out his $1M bet ahead of time and says it is to prove a point? And do you think that the United States will actually go into hyperinflation and Bitcoin’s price will reach a million? Let us know in the comments below. Also, if you find our content informative, do like and share it with your friends.
Also Read: United States could default on its debt by June 1, says Janet Yellen.
