Balaji Srinivasan, the former CTO of Coinbase, has made a million-dollar bet on the price of bitcoin (BTC) in the next 90 days, predicting that the price of the cryptocurrency will reach a million dollars on June 17.
The bet will start on March 17, when Twitter user interacting under the pseudonym James Medlock offered to bet anyone $1 million that the United States would not experience hyperinflation. A few hours later, the former Coinbase CTO accepted the bet.
Sir, I believe we have ourselves a deal https://t.co/9JYaLNo9Eq
— James Medlock (@jdcmedlock) March 18, 2023
Sir, I think we have a deal.
Under the proposed terms, If the bitcoin price does not reach $1 million by June 17, Medlock will earn $1 million from USD Coin (USDC) stablecoin with USD parity and 1 BTC. In the same way, if bitcoin is worth at least $1 million by that date, Balaji will be able to keep 1 BTC and $1 million in USDC. Srinivasan explained in the thread:
“You buy 1 BTC. I’ll send $1 million. This has odds of about 40:1, since 1 BTC is worth about $26,000. The timeframe is 90 days.”
According to the thread, other Twitter users helped set up a smart contract with the terms of the bet. Srinivasan also revealed that he would move another million dollars in USDC for another bet on the same topic:
“I’m moving $2 million into USDC for the bet. I’ll do it with Medlock and one other person, enough to prove the point. See my next tweet. Everyone else should go buy bitcoin as it will be much cheaper than locking one for 90 days”.
Medlock and Srinivasan made the bet based on their differing views on the future of the US economy amid ongoing uncertainty about the country’s banking system.
srinivasan holds that there is an impending crisis that will lead to the deflation of the US dollar and therefore to a hyperinflation scenario that would take the price of BTC to 1 million dollars. Medlock, for its part, is bearish on the coming hyperinflation in the country.
Meanwhile, bitcoin price has reached $27,387 as of this writingand its market capitalization totals more than 194,000 million dollars so far this year, with a 66% growth in 2023, outpacing Wall Street bank stocks amid fears of a global banking crisis.
Besides, for the first time in a year, BTC price action has moved away from US stocksrising around 65% compared to the S&P 500’s 2.5% gain and the Nasdaq’s 15% drop, Cointelegraph reported.
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