{"id":4361,"date":"2023-05-04T23:59:04","date_gmt":"2023-05-05T03:59:04","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/former-coinbase-cto-loses-1-million-bitcoin-bet-warns-about-us-hyperinflation\/"},"modified":"2023-05-04T23:59:05","modified_gmt":"2023-05-05T03:59:05","slug":"former-coinbase-cto-loses-1-million-bitcoin-bet-warns-about-us-hyperinflation","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=4361","title":{"rendered":"Former Coinbase CTO Loses $1 Million Bitcoin Bet, Warns About US Hyperinflation"},"content":{"rendered":"
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Coinbase\u2019s former chief technology officer Balaji Srinivasan has settled his bet from March that Bitcoin would reach $1 million in just 90 days, while warning the public that he still believes hyperinflation is coming.<\/p>\n

\u201cI just burned a million to tell you they’re printing trillions,\u201d Srinivasan started his Twitter thread by saying, while explaining that he made the bet not to make money, but to rather as way to get people\u2019s attention.<\/p>\n

\u201cSo I spent my own money to send a provably costly signal that there\u2019s something wrong with the economy, and that it’s not going to be a \u2018soft landing\u2019 like [Fed chair] Powell promises \u2014 but something much worse,\u201d the former Coinbase CTO wrote.<\/p>\n

Things can go wrong very quickly<\/h2>\n

Meanwhile, in a video posted in the same Twitter thread, the former Coinbase CTO explained that he decided to settle his bet early, while making the case for why the current problems in the economy could get much worse very quickly.<\/p>\n

To illustrate how fast events can unfold, Srinivasan referred to a number of historic events, with the most recent being the two days it took from Silicon Valley Bank (SVB) collapsed until the government had printed $200 billion.<\/p>\n

He went on to explain that it then took just two weeks for $500 billion to make its way out of local banks, that it took two months from patient zero of the Coronavirus until lockdowns in the US, and it took two quarters from Ben Bernanke in 2008 said there would be \u201ca mild recession\u201d to the Global Financial Crisis was acknowledged.<\/p>\n

\u201cIn each of these cases, too slow was being too late, and the thing is that right now, in the economy, many things are breaking at once,\u201d Srinivasan, who is also a prominent venture capitalist, said.<\/p>\n

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A fiat crisis<\/h2>\n

He followed up with more details in a blog post, which opened by stating that the ongoing banking crisis in the US and Europe is \u201cnot a financial crisis. It\u2019s a fiat crisis.\u201d<\/p>\n

\u201c[\u2026] flooding the system with money when it\u2019s already under stress and experiencing high inflation will cause the fiat crisis,\u201d Srinivasan wrote, before explaining how he believes events will unfold:<\/p>\n

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\u201cA loss of global faith in the US financial system, followed by the attempted introduction of digital lockdown via a CBDC-equivalent, accelerated physical emigration from blue states, and associated capital flight from the dollar to assets like gold, Bitcoin, and foreign currencies outside the control of the Federal Reserve.\u201d<\/p>\n<\/blockquote>\n

The \u201cBitSignal\u201d bet<\/h2>\n

Srinivasan entered the $1 million bet over Twitter on March 17 with pseudonymous Twitter user James Medlock in response to a tweet from Medlock that he would \u201cbet anyone $1 million dollars that the US does not enter hyperinflation.\u201d<\/p>\n

\u201cI will take that bet. You buy 1 BTC. I will send $1M USD,\u201d Srinivasan responded in the now legendary tweet he called the \u201cBitSignal.\u201d<\/p>\n

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