April 4, 2023
Balaji Srinivasan, a well-known figure in the tech and crypto worlds, has made a $2 million bet on Bitcoin.
Srinivasan has an impressive resume that includes being an angel investor, tech founder, and best-selling author of The Network State.
He has degrees in electrical and chemical engineering from Stanford University and has worked as the CTO of Coinbase and a general partner at venture firm Andreessen Horowitz.
He is known for his ability to see the big picture and has a passion for discussing complex topics in great detail.
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In fact, he previously co-founded a genetic testing company and wrote papers on microbial and clinical genomics. He even taught bioinformatics at Stanford.
This knowledge no doubt helped him call the Covid-19 pandemic before it was on most people’s radar.
In an interview back in Nov 26, 2019 he stated, “...this looks actually very serious…and it is not being covered enough,” when asked about the virus that was spreading in Wuhan China.
Shortly before the pandemic arrived in earnest he called with crystal clear accuracy the societal outcome in this Tweet from January 2020:
And now he’s betting that Bitcoin will reach a price of $1 million within just 90 days.
The bet was initiated on March 17 when a Twitter user named James Medlock offered to bet anyone $1 million that the US would not experience hyperinflation.
Srinivasan accepted the bet, and if Bitcoin's price fails to reach $1 million by June 17, Medlock will win $1 million worth of the dollar-pegged stablecoin USDC and 1 Bitcoin. If Bitcoin's price reaches $1 million by the specified date, Srinivasan can keep the 1 Bitcoin and the $1 million in USDC.
Srinivasan has made the bet based on his belief that the US economy is facing a banking crisis that will lead to US Dollar hyperinflation.
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Medlock, on the other hand, is bearish about the possibility of hyperinflation in the country.
The bet was made using a smart contract with the betting terms, and Srinivasan disclosed that he would move another $1 million in USDC for another wager on the same topic.
Balaji outlined his thesis in a detailed Twitter thread where he stated that the banking system is fundamentally insolvent.
Many have dismissed Srinivasan's prediction hyperbolic and his bet as mere attention seeking. However, Srinivasan's bet has sparked an important conversation about the state of the financial and banking systems.
Others have accused Srinivasan of being a rich “tech bro,” urging bank runs and fiddling as the financial system burns. And some have questioned whether Srinivasan has anything to lose, as he is known to own a considerable amount of Bitcoin.
At the end of the day, none of that matters because Balaji is right.
He just doesn’t have the timing down…or at least I hope not. Because no one, including me, wants to live in a society suffering from a hyperinflated currency.
But there’s no doubt that given the incompetence, greed, and corruption of our leaders the US Dollar is doomed which will eventually result in devalued currency and a flight into hard assets across the board (gold, land, and Bitcoin among others.)
This is why I’m investing in cryptocurrency now.
Editor, Daily Profit Cycle