Benzinga - Former Coinbase Chief Technology Officer (CTO) Balaji Srinivasan is betting big on Bitcoin (BTC/USD), predicting the cryptocurrency will hit $1 million by June 17 because of a rapid devaluation of the U.S. dollar.
Srinivasan entered into a $1 million bet via Twitter with two individuals, offering up Circle's USDC stablecoin to pseudonymous Twitter personality James Medlock and another unnamed person if Bitcoin fails to achieve the historic gains he predicts. The bet is part of Srinivasan’s view that the global economy is on the cusp of change, leading to what he calls "hyperbitcoinization" and a redenomination of the global economy on Bitcoin as digital gold.
Srinivasan's prediction comes amid a series of bank failures in the U.S. that have injected fear and uncertainty into financial markets. Bitcoin's recent surge past $28,000, outperforming Wall Street bank stocks, has led some on Twitter to call it "The Great Decoupling." The bold bet has sparked lively debates on Twitter, with prominent voices, including Jimmy Song and Adam Cochran, weighing in on its feasibility.
Other startups in the sector have seen increased traction following the blockchain-based rebound. Popular blockchain-based gaming asset platform Gameflip, for example, recently passed $870,000 raised on StartEngine and $160 million in volume traded on the platform.
Although Cochran acknowledged that Bitcoin could have utility during an existential crisis for the financial system, he argued that Srinivasan's bet is fueled by an unrealistic hope in a risky macro environment. Cochran posited that a collapse of the U.S. and European banking systems would ultimately overshadow the potential value of Bitcoin as an asset, making bunkers or beans a better use of money than purchasing the world’s largest cryptocurrency.
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Srinivasan's bet has sparked renewed excitement and hope in the crypto market after a tough 2022, a time when prices plummeted and numerous crypto firms collapsed.
Following Srinivasan's bet on Bitcoin's rise to $1 million, Bloomberg's Matt Levine questioned why Srinivasan chose to make the bet instead of simply buying Bitcoin. In response to Levine's tweet, some suggested that Srinivasan may be attempting to manipulate the price of Bitcoin, while others posited that he may be seeking exposure for himself and the cryptocurrency. According to Datawallet, Srinivasan's estimated net worth is around $150 million. He previously co-founded Earn.com, which rewarded users with digital assets for completing small tasks, before it was acquired by Coinbase, where he served as CTO.
Others share Srinivasan's bold prediction that Bitcoin could reach $1 million in value. Last year, Ark Invest, led by Cathie Wood, also made a similar forecast, estimating that Bitcoin's value could surpass $1 million by 2030.
Wood’s prediction was based on the assumption that Bitcoin would continue to gain acceptance among institutional investors, leading to an increase in demand and a subsequent rise in price. Ark Invest is a well-known investment firm that specializes in disruptive innovation, and Wood is one of the most prominent voices in the investment community advocating for Bitcoin.
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While Srinivasan’s prediction of a $1 million Bitcoin price within the next three months is more ambitious than Wood’s, it is not without precedent. Bitcoin has experienced massive price swings in the past, with some investors making fortunes during bull markets. But the cryptocurrency has also been subject to extreme volatility, and it is not uncommon for its price to plummet just as quickly as it rises.
Regardless of whether Srinivasan’s bet pays off, it has generated a lot of attention in the cryptocurrency community. Many people are eager to see whether he will be proven right, and the outcome of his wager could have far-reaching implications for the future of Bitcoin and the wider crypto market.
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