• Balaji Srinivasan, the former CTO of Coinbase, has recently predicted that Bitcoin’s price will reach $1 million in the next 90 days due to an ongoing global banking crisis and impending inflation.
• Srinivasan believes that digital gold will become a more viable option than physical gold and points to ChatGPT’s recent boom as evidence of increasing interest in digital assets.
• He has bet on Bitcoin’s future, placing his confidence on hyperinflation happening quickly and having significant effects across the digital realm.
The Prediction
Balaji Srinivasan, the former CTO of Coinbase, has recently garnered attention for his prediction that Bitcoin’s price will reach $1 million over the next 90 days. While many experts remain skeptical, Srinivasan believes that the ongoing global banking crisis and the impending hyperinflation will lead to a surge in Bitcoin’s value.
Bank Failures & Digital Gold
According to Srinivasan, bank failures will ultimately lead to hyperinflation, making the redenomination of digital gold a more viable option than physical gold. He explained that gold held back the ability of states to wage wars in the 20th century but is no longer as relevant in the digital age.
Digitization & Confidence
Srinivasan highlighted ChatGPT’s recent boom, which signed up around 100 million people in just a few weeks. While this pales in comparison to the approximately 400 million people globally holding crypto, it shows a growing interest in digital assets. He also pointed out that $42 billion was moved out of Silicon Valley Bank in just one day, indicating a growing lack of confidence in traditional banking systems.Srinivasan believes that once people learn about the countless bank runs presided over by the Federal Reserve System, they will lose faith in the dollar system and seek a safe haven in Bitcoin.He further explained that if the Fed fails to tighten monetary policy to combat inflation due to fear of collapsing banks, Bitcoin will become an even more attractive alternative.
The Bet
Srinivasan’s $1 million bet on Bitcoin’s price increasing by 3,600% by June 16 has raised eyebrows. However, he remains confident that hyperinflation will happen quickly, and its effects will be felt across the digital realm. Srinivasan cited the digital pandemics , riots , and bank runs occurring recently as proof that anything can happen rapidly within this space .
The Shut Down Of Banks
The recent shutdown of Silicon Valley Bank and Signature Bank , two banks specializing in tech lending as well as crypto-friendly banking respectively , have raised questions about traditional banking systems‘ futures . Barney Frank , co-author of Dodd-Frank Act addressed these concerns by saying ‚If you don’t want another financial crisis like 2008 , then you need strong regulations‘.