Balaji S. Srinivasan, angel investor and a former Coinbase CTO, has announced on Twitter his intention to bet $2 million on Bitcoin reaching $1 million within the next 90 days.
Srinivasan outlined his belief that central banks, banks, and regulators have been dishonest with dollar holders and depositors. He claimed the industry is grappling with an insolvency crisis, pointing to undisclosed issues and mark-to-market losses.
Srinivasan highlighted that the problem stems from banks having purchased large quantities of long-dated US Treasuries, which he dubbed the “ultimate shitcoin.” He asserted that these institutions were misled into believing the Federal Reserve would keep interest rates low indefinitely, leading them to make risky investments.
The former Coinbase CTO criticized the Federal Reserve’s recent interest rate hikes, which he believes are responsible for the current banking crisis. He argued that the abrupt shift in monetary policy hurt those who bet on long-term Treasuries, exposing them to significant losses.
As a result of these concerns, Srinivasan has opted to move $2 million into the USDC stablecoin to place his bet. This move demonstrates his confidence in Bitcoin’s potential growth as a safer investment alternative amidst the alleged banking crisis.
He has confirmed that he will place the bet with Medlock and another individual to underscore his conviction in the cryptocurrency’s future performance.
Pseudonymous cryptocurrency analyst “Pentoshi” cautions that a rapid increase in Bitcoin’s value to $1 million within 90 days, along with hyperinflation, could result in widespread civil unrest, riots, and limited access to essential goods.