© Reuters. Balaji Bets $1M on Bitcoin Price, Says US Hyperinflation Is Underway
- A tech founder gambles $1 million that the US would enter hyperinflation.
- The participant prefers the stake through a smart contract to allow USDC.
- The US government recently printed $300 billion as a bail-out for banks.
In a bold move, Balaji Srinivasan, a tech founder, accepted the wager of James Medlock, a social democrat, who bet $1 million that the US would not enter hyperinflation. Srinivasan took the bet against one (BTC) with 40:1 odds, with the bet terms lasting 90 days.
Srinivasan said he needs a mutually agreed custodian to ensure the bet’s settlement in case of digital dollar devaluation. The tech founder also mentioned the possibility of executing the stake through a smart contract, allowing the use of USDC stablecoin instead of US dollars. Nonetheless, Srinivasan challenged Medlock to name a custodian if he was unwilling to use a smart contract.
I will take that bet.You buy 1 BTC.I will send $1M USD.This is ~40:1 odds as 1 BTC is worth ~$26k.The term is 90 days.All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.If someone knows how to do this… https://t.co/tcuBNd679T pic.twitter.com/6Aav9KeJpe
— Balaji (@balajis) March 17, 2023
The tweet sparked much interest in the crypto community, with many users discussing the feasibility of such a bet and the potential risks and rewards involved.
While Srinivasan took the bet, he argued that banks and regulators have been lying to depositors and dollar holders about the insolvency of banks, much like in the 2008 financial crisis. According to the analyst, Banks used deposits to buy long-dated US Treasuries, ultimately devalued by the federal reserve bank, causing a banking crisis.
The tech founder argued that investors who gambled on long-term Treasuries were wiped out in 2021, and those who relied on short-term Treasuries would suffer the same fate in 2023. He recommends buying Bitcoin and getting coins off exchanges as a protective measure against financial risks.
Notably, multiple reports have confirmed that the US government recently printed $300 billion “out of thin air” as a bail-out following the collapse of three prominent banks in the country.
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