2023-3-19 13:43 |
Coinbase’s former Chief technical officer Balaji Srinivasan has wagered $2 million that Bitcoin would be worth $1 million in 90 days, attracting counter opinions from the crypto community.
Srinivasan placed the bet against social democrat James Medlock, who said the U.S. would not enter hyperinflation. In response, the crypto executive said he was moving $2 million USDC for the bet, basing his prediction on the opinion that the U.S. banking system would soon collapse.
Here are the remaining references, as Twitter has a limit on the number of links in one post.
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
Meanwhile, Srinivasan conditioned Medlock to buy 1 BTC. According to the Coinbase former executive, if the digital asset does not reach $1 million within 90 days, Medlock gets to keep the $1 million USDC and 1 BTC. But if BTC reaches $1 million, he takes the coin and $1 million.
Srinivasan added that the bet should be sent to any custodian, suggesting crypto influencer Cobie. He further hinted that the bet could be sent to a smart contract.
However, Medlock claimed he does not have a liquid $26,000 and suggested crowdfunding in which he would donate 70% to GiveDirectly. But U.S. poker player Isaac Haxton offered to cover the 1 BTC without taking any of the upsides if Medlock wins.
Community Doubts Balaji’s PredictionAdam Cochran, Partner at Cinneamhain Ventures, has expressed skepticism that BTC could reach $1 million in the next 90 days. According to him, this would mean the flagship digital asset would rally 3600% during the period.
3/25
The bet here, is that within 90 days, Bitcoin will reach a price of $1M USD.
Or around a 3600% gain within the next 90 days.
To put that in perspective, the rally from 2020 – 2022 was only 547% and the 2017 rally at far lower prices was only 1105% gain. pic.twitter.com/7OZZHXNgYX
Cochran said the belief that hyperinflation and debasement would send BTC to $1 million within 90 days is faulty because alternatives like BTC are only good when there is a potential economic risk, not system risk.
“When economics are bad or cash strained, alternatives are good. When the system doesn’t exist – it doesn’t matter anyway.”
The crypto venture capitalist pointed to the COVID-19 pandemic and how Bitcoin and Gold, both safe-haven assets, fell during the period because of the fear of system collapse.
Meanwhile, Cochran expects that the next 90 days could be bad for the banking system. But he does not expect a total collapse and believes any downside to the system will also affect cryptocurrencies. In his view, it will take more than 90 days for Bitcoin to reach $1 million.
BeInCrypto’s Global Head of News, Ali Martinez, said that BTC must see around $18.7 trillion in investment to reach $1 million. He added:
“This simplified calculation doesn’t account for factors such as market liquidity, order book depth, depreciation in the US dollar value, and other market dynamics.”
The post Coinbase Former CTO Bets $2M on Bitcoin to Reach $1M in 90 Days appeared first on BeInCrypto.
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