Coinbase ex-CTO bets on Bitcoin to hit $1M in 90 days
Coinbase’s former CTO Balaji Srinivasan has bet $2 million that Bitcoin will be worth $1 million in 90 days, attracting counter opinions from the crypto community.
Srinivasan placed the bet against Social Democrat James Medlock, who so The US would not go into hyperinflation. In response, the crypto boss said he moved $2 million USDC for the bet, basing his prediction on the belief that the US banking system would soon collapse.
Balaji bets on $1M BTC
Meanwhile, Srinivasan conditioned Medlock to buy 1 BTC. According to Coinbase’s former executive, if the digital asset does not reach $1 million within 90 days, Medlock gets to keep $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, hinting at crypto influencer Cobie. He further suggested that the effort could be sent to a smart contract.
However, Medlock claimed that he does not have a liquid $26,000 and suggested crowdfunding where he would donate 70% to GiveDirectly. But the American poker player Isaac Haxton offered to cover 1 BTC without taking any of the benefits if Medlock wins.
Adam Cochran, partner at Cinneamhain Ventures, has expressed skepticism that BTC can reach $1 million in the next 90 days. According to him, this would mean that the flagship digital asset will increase by 3600% during the period.
Cochran said that the belief that hyperinflation and deterioration will send BTC to $1 million within 90 days is wrong because alternatives like BTC are only good when there is a potential financial risk, not systemic risk.
“When the economy is bad or cash is tight, the options are good. When the system doesn’t exist – it doesn’t matter either way.”
The crypto venture capitalist pointed to the COVID-19 pandemic and how Bitcoin and gold, both safe-haven assets, fell during the period due to fears of systemic collapse.
Meanwhile, Cochran expects the next 90 days could be bad for the banking system. But he doesn’t 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 would need to see around $18.7 trillion in investment to reach $1 million. He added:
“This simplified calculation does not take into account factors such as market liquidity, order book depth, weakening US dollar values and other market dynamics.”
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