Former Coinbase CTO Bets $2M Over Bitcoin Reaching $1M in 3 Months
- If Bitcoin’s value doesn’t hit $1 million by June 17, Medlock will get 1 BTC and $1M USDC.
- Srinivasan claims a crisis is imminent, which would cause the deflation of the U.S. dollar.
Balaji Srinivasan, a former CTO at cryptocurrency exchange Coinbase, has placed a $1 million bet on the price of Bitcoin (BTC) rising to $1 million by June 17. On March 17, a Twitter user going by the alias “James Medlock” made a $1 million bet to anybody who could prove that hyperinflation would not occur in the United States. Some hours later, the former Coinbase CEO conceded.
If Bitcoin’s value doesn’t hit $1 million by June 17 as planned, Medlock will get 1 BTC and $1 million worth of the dollar-pegged stablecoin USD Coin (USDC). Balaji may retain the 1 Bitcoin and the $1 million in USDC if the value of Bitcoin has increased to at least $1 million by the date.
Divergent Predictions For U.S Economy
According to the thread, a smart contract outlining the betting rules was created with the assistance of other Twitter users. Srinivasan also said he would be transferring another $1 million in USDC to place a bet on the same matter.
Srinivasan stated:
“I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. See my next tweet. Everyone else should just go buy Bitcoin, as it’ll be much cheaper for you than locking one up for 90 days.“
The two men, Medlock and Srinivasan, placed the bet based on their divergent predictions for the future of the US economy in the face of continuing banking sector instability. Srinivasan claims a crisis is imminent, which would cause the deflation of the U.S. dollar and, therefore, a hyperinflation situation that will drive the price of Bitcoin to $1 million.
