Venture capitalist Balaji Srinivasan predicts hyperinflation will occur in the US, sending Bitcoin price to $1 million in the next 90 days. He believes this cryptocurrency is a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.
Twitter user James Medlock said on March 17 that he was willing to bet anyone $1 million that the US does not enter hyperinflation. Hours later, the former Coinbase CTO responded:
“I will take that bet. You buy 1 BTC. I will send $1M USD. This is ~40:1 odds as 1 BTC is worth ~$26k. The term is 90 days. All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.”
In a follow-up tweet, Srinivasan detailed: “I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. Everyone else should just go buy bitcoin, as it’ll be much cheaper for you than locking one up for 90 days.”
According to CoinTelegraph, Medlock and Srinivasan made the bet based on different views on the future of the US economy when the banking system of this country was in turmoil. Srinivasan thinks a crisis is imminent that will lead to a devaluation of USD and create a hyperinflationary scenario, sending the Bitcoin price to 1 million USD. In contrast, Medlock is skeptical of the possibility of hyperinflation.
Bitcoin has now surpassed $28K, its market cap hitting over $545 billion. For the first time in a year, Bitcoin price is no longer dependent on the US stock market as the cryptocurrency is up 65% versus S&P 500’s 2.5% gains and Nasdaq’s 15% decline in 2023.
Srinivasan is a venture capitalist, a tech founder and a Wall Street Journal bestselling author. He formerly served as the CTO of crypto exchange Coinbase and was general partner at venture capital firm Andreessen Horowitz (A16z).