Balaji gives up and calculates $ 1 million Bitcoin bet

Balaji gives up and calculates $ 1 million Bitcoin bet

The former CTO of Coinbase, Balaji Srinivasan, has withdrawn from his notorious $ 1 million Bitcoin bet, in which he set $ 1 million at Bitcoin's price.

However, the investor states from his thesis that the US dollar is on the way to hyperinflation, and emphasizes that the economy will not experience the "gentle landing" promised by US Federal Researchers.

burn a million dollars

in a tweet On Tuesday Balaji announced that he had agreed to make his extremely bullish Bitcoin price bet in advance. He presented on-chain evidence for three payments of $ 500,000, including one to Medlock (the counterparty of the bet), another to the charity organization Give Directly and another Bitcoin core development

that's 50 % more than the former manager had to tie-and 46 days earlier than planned. He had spoken at the Consensus 2023 last week a probability of about 10 %that his prediction of a financial misfortune will actually come true within this time.

"The reason why I did it was that I believe in the common good, but unfortunately we can no longer rely on the fact that the public sector tells us when something is wrong," wrote Balaji. "So I spent my own money to send a demonstrably costly signal that something is wrong with the economy."

In an attached video, the investor explained that financial turbulence can happen quickly-and without warning of supervisory authorities or the government. For example, Ben Bernanke said that the economy could get into a "light recession" in April 2008, just five months before the official start of the big financial crisis.

The Federal Reserve also only needed two days after the collapse of the Silicon Valley Bank collapsed to spray $ 300 billion into business, and two weeks, up to $ 500 billion from business bank deposits in money market funds.

The economy breaks down

According to Balaji, several areas of the economy are about to collapse. The US debt limit is quickly approaching, most US banks are now about to bankruptcy, and the assets held by failed banks now have a comparable value as in 2008.

In addition, bonds 2022 experienced their worst year of all time, which were largely bought by banks and insurance companies. The debts of studies loans and credit cards are also at all -time highs with $ 180 billion or $ 960 billion.

Balaji also believes that the countries "desperate" at a rapid pace, which reflects the views published by Bitmex-Grünprününder Arthur Hayes in the past Month that the dollar could be on the way to lose its status as a global reserve currency.

"If you believe that there is a high probability that these simultaneous economic crises will cause massive pressure in 90 days, 900 days or even 90 months-then you expect a kind of payment failure and you expect a Fiat crisis," wrote Balaji about his Land . "And you should be prepared whatever that means for you."

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