Former Coinbase CTO makes $2M bet on Bitcoin’s performance

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Former Coinbase Chief Technology Officer Balaji Srinivasan has made a billionaire bet on the price of Bitcoin (BTC) over the next 90 days, predicting that the cryptocurrency will hit $1 million by June 17. predicted to reach

the stake is start On March 17, when pseudonymous Twitter user James Medlock offered to bet $1 million that the United States would never experience hyperinflation. A few hours later, the former CTO of Coinbase accepted the bet.

Under the proposed terms, if Bitcoin’s price does not hit $1 million by June 17, Medlock will win $1 million worth of the dollar-pegged stablecoin USD Coin (USDC) and 1 BTC. Similarly, if Bitcoin is worth at least $1 million by date, Balaji says he can hold $1 million with 1 BTC and USDC. Srinivasan explains in a thread:

“You buy 1 BTC. You transfer $1 million. 1 BTC is worth ~$26,000, so this is ~40:1 odds. Term is 90 days.”

Related: Banking Crisis: What Does It Mean for Cryptocurrencies?

According to the thread, other Twitter users helped set up smart contracts with wagering requirements. Srinivasan also revealed that he will move another $1 million in USDC to make another bet on the same topic.

“I am transferring $2 million to USDC for betting. I did it with Medlock and one other, enough to prove a point. See my next tweet. Others should go buy bitcoins, than lock one for 90 days.”

Medlock and Srinivasan bet on different views on the future of the U.S. economy amid continued uncertainty about the country’s banking system.

Srinivasan claim There is an imminent crisis leading to US dollar deflation, thus leading to a hyperinflationary scenario with BTC price reaching $1 million.Medlock, on the other hand, is bearish on the upcoming hyperinflation in the country.

Meanwhile, Bitcoin’s price has reached $27,387 at the time of writing, with its market capitalization growing by more than $194 billion year-to-date and growing by 66% in 2023, just ahead of the global banking crisis. Wall Street bank stocks outperform in fear.

Also, for the first time in a year, BTC’s price has drifted away from US stocks, up about 65% compared to the S&P 500’s 2.5% gain and the Nasdaq’s 15% drop, Cointelegraph reported.