In this video, Balaji discusses the possibility of his earlier forecast of Bitcoin reaching $1 million by 2025. He provides insights into the current state of Bitcoin and offers his predictions on the factors that could affect its growth in the coming years. The conversation offers valuable insights for investors and anyone interested in the future of cryptocurrency. Watch the video to get a deeper understanding of the prospects for the world’s most famous cryptocurrency.
Former CTO of Coinbase, Balaji Srinivasan, made a bold bet that Bitcoin would hit $1 million by June 17. However, with Bitcoin currently trading at $29,150, the asset would need to appreciate by over 3000% for the bet to win. Despite the odds against him, Srinivasan explained his motivations and rationale behind the bet at Consensus 2023.
Srinivasan drew parallels between the current financial climate and the great financial crisis of September 2008. He predicts that there is a 10% chance of a very serious issue occurring in months, a 70% chance in years, a 19% chance in decades, and a 1% chance it takes a century or so on. His bullish thesis is based on the US dollar entering a hyperinflationary death spiral in response to the banking crisis. He believes it’s better to be early when trying to protect against downside risks.
However, Srinivasan acknowledged that his bet is more of a marketing spend to raise awareness of the fiat crisis and is really just a directional signal. It’s possible that the financial fallout takes place in “900 days” or even “90 months,” or that Bitcoin’s exact endpoint falls short of $1 million.
If his prediction comes true, he is sure that he won’t be the one to have caused the collapse through a series of tweets. The Fed, he says, is to blame for the collapse since it incentivized financial institutions to invest in real estate through easy liquidity in 2021 before tightening interest rates and crashing treasuries and mortgage-backed securities in 2022.
In conclusion, Srinivasan’s bet may seem like a long shot, but according to him, it’s better to be prepared for a downside risk than to be caught off guard. Whether or not Bitcoin hits $1 million by June 17 remains to be seen, but the bet has certainly raised awareness of the fiat crisis and the importance of protecting oneself against financial collapse.