Balaji Srinivasan Predicts Hyperinflation Happening Now — Makes Million-Dollar Bets on Bitcoin Price Reaching $1M in 90 Days – Economics Bitcoin News


Venture capitalist and angel investor Balaji Srinivasan predicts hyperinflation is already here. With a million-dollar bet that bitcoin will hit $1 million in 90 days, he is advising investors to buy the cryptocurrency, which he believes is a “hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.”

Balaji Srinivasan: Hyperinflation Is Here

Venture capitalist Balaji Srinivasan believes that hyperinflation is already happening now. Srinivasan is a Wall Street Journal bestselling author, tech founder, and angel investor. He formerly served as the CTO of crypto exchange Coinbase and was a general partner at venture capital firm Andreessen Horowitz (A16z).

In response to a tweet made by former Twitter CEO Jack Dorsey in October 2021 stating that hyperinflation will occur “soon” and “change everything,” Srinivasan tweeted Friday, “Jack is right.” He added:

Hyperinflation is here — now.

The angel investor referred to recent government and Federal Reserve bailouts of Silicon Valley Bank and Signature Bank. The Treasury Department said last Sunday that it will make available up to $25 billion as a backstop for its new Bank Term Funding Program (BTFP). He additionally mentioned that Federal Reserve Bank of Minneapolis President Neel Kashkari previously stated: “There is an infinite amount of cash at the Federal Reserve.”

Srinivasan clarified in December last year that bitcoin is “a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.” He added: “It’s already proven itself in that role, in places like Venezuela, Lebanon, Nigeria.” In comparison, he explained that the largest cryptocurrency “may eventually have a gold-like role” as a hedge against “standard” inflation, but noted that it “takes decades to show.”

Believing that hyperinflation is arriving, Srinivasan also recommended investors to buy BTC in his tweet Friday. The venture capitalist wrote:

Buy bitcoin and get your coins off exchanges.

$1M Bitcoin Bets

In addition, Srinivasan responded to a bet initiated by James Medlock, who declared on Twitter Thursday: “I’ll bet anyone $1 million dollars that the U.S. does not enter hyperinflation.” The former Coinbase CTO responded:

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.

In a follow-up tweet, Srinivasan detailed: “I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point … Everyone else should just go buy bitcoin, as it’ll be much cheaper for you than locking one up for 90 days.”

Several people have offered to help Medlock put up the 1 bitcoin for the wager. Medlock consequently tweeted: “Balajis ready to do this?”

Srinivasan responded: “Yes. Just moving money for the bet. We can do it via smart contract, but for simplicity old-fashioned escrow may work,” Srinivasan replied. “The escrow person would need one BTC address and one ETH address (for the USDC). The assets would sit on chain for 90 days.” He stated:

If BTC < $1M in 90 days after escrow, then you win and get both the 1 BTC and the $1M USDC. If BTC > $1M USD in 90 days after escrow, then I win and get both the 1 BTC and the (now worthless) $1M USDC.

Medlock replied: “Sir, I believe we have ourselves a deal.” The CEO of crypto exchange Binance, Changpeng Zhao (CZ), joined the conversation, offering to be the escrow for the bet. At the time of writing, BTC is trading at $27,208.

Do you agree with Balaji Srinivasan that hyperinflation is already here? And do you think bitcoin’s price will exceed $1 million in 90 days? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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