Hyperinflation and Bitcoin bets, AI replaces the first jobs and more
US inflation and how it could affect the price of Bitcoin (BTC) are two of the biggest concerns for investors around the world. To illustrate, a prominent crypto personality bet big on the future of the US economy: the former Coinbase CEO recently paid out $1.5 million to settle a Twitter bet about possible hyperinflation in the US economy.
The US may not be experiencing hyperinflation, but the possibility of prices spiraling out of control seems to worry the Federal Reserve. The Fed raised interest rates by a quarter of a point on May 3 – to the highest level in 16 years – and pushed the target range for the benchmark from 5% to 5.25%.
As inflationary pressures continue, Bitcoin is still seen as a safe haven for many, with crypto firms weighing on the digital currency to combat inflation and turmoil in mainstream finance.
This week’s Crypto Biz explores the latest wild bets on Bitcoin prices, inflation fears and the jobs that artificial intelligence may soon replace.
Balaji cashes out his insane $1 million Bitcoin stake, 97% below price target
A closely watched bet between former Coinbase CTO Balaji Srinivasan and pseudonymous Twitter user James Medlock has been shut down, with Srinivasan paying $1.5 million to settle. The bet began on March 17 when Medlock offered to bet anyone $1 million that the United States would not experience hyperinflation. A few hours later, the former Coinbase CEO accepted the bet, claiming that an impending crisis would lead to the deflation of the US dollar and thus to a hyperinflationary scenario, taking the BTC price to $1 million. As part of the deal, Srinivasan paid Medlock $500,000, donated $500,000 to Bitcoin core developers and gave another $500,000 to the non-profit charity Give Directly.
MicroStrategy’s Bitcoin Conviction Is ‘Strong’ As It Post Q1 Profit
Bitcoin investment strategy is as strong as ever at business intelligence platform MicroStrategy after the company delivered its first quarterly results since 2020. The firm returned to the green with a profit of $94 million, primarily attributed to a one-time tax benefit of $453.2 million. The firm further reduced its leverage by repaying a $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank. Quarterly results were also impacted by a 2.2% increase in revenue from last year to $121.9 million. MicroStrategy CEO Phong Lee said the firm will continue to execute its dual strategy of growing business intelligence software and acquiring Bitcoin. The firm believes its Bitcoin thesis is a “pretty good way to outperform the market.”
Coinbase stock will be ‘weighted down’ until US rules are clear: Citi
Coinbase’s share price will continue to be “weighted down” until regulators establish the legal “rules of the road” in the US, Citi analysts say. The bank downgraded shares of the crypto exchange from “buy” to “neutral” and lowered its price target, citing “too many unknowns” as the company battles regulators. However, bearish sentiment on Coinbase stock does not stop the investment company ARK Invest from increasing its exposure to the crypto exchange. ARK bought 168,869 Coinbase shares for its exchange-traded funds on May 1, worth nearly $8.5 million. In April, ARK acquired 304,300 shares worth 17.5 million dollars. Previously, the firm bought 2.4 million shares in March for about $117 million.
Citi’s analysis was published before Coinbase’s first-quarter earnings report was released on May 4.
7,800 jobs at IBM could be replaced by artificial intelligence within a year, the CEO suggests
IBM expects to put a “pause” on hiring for “back office” roles that could potentially be automated by artificial intelligence instead. According to the company’s CEO, Arvind Krishna, back office positions, such as those in human resources and accounting departments, are likely to be the first to be automated by AI. Nearly 30% of these positions will “easily” be replaced by AI over five years, Krishna claimed in an interview. IBM employs 282,000 people globally, according to LinkedIn data. Non-customer-facing employees sit at almost 26,000.
Before you go: The average person’s wealth will be “completely destroyed by inflation,” says Arthur Hayes
The majority of people will have their wealth gradually eaten away by the devaluation of money, according to Arthur Hayes, co-founder and former CEO of crypto derivatives exchange BitMEX. He believes the world’s largest economies will be forced to inflate the significant public debt accumulated in recent years through money printing. With long-term inflation on the horizon, Hayes’ investment mission focuses on preserving wealth through investing in digital assets. You can watch his exclusive interview with Cointelegraph on our YouTube channel.
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