Venture capitalist and angel investor Balaji Srinivasan says hyperinflation is happening now. Expecting the price of bitcoin to reach $1 million soon, he is placing million-dollar bets that it will happen in 90 days. Srinivasan also advised investors to buy bitcoin, which he believes is “a hedge against hyperinflation, currency debasement, bank freezes and wealth seizures.”
Balaji Srinivasan: Hyperinflation is here
Venture capitalist Balaji Srinivasan believes that hyperinflation is happening now. Srinivasan is an angel investor, technology founder, and Wall Street Journal bestselling author. He previously served as CTO of cryptocurrency exchange Coinbase and was a general partner at venture capital firm Andreessen Horowitz (A16z).
Commenting on a tweet made by former Twitter CEO Jack Dorsey in October 2021 that hyperinflation will happen “soon” and “change everything,” Srinivasan tweeted on Friday: “Jack is right.” He emphasized:
Hyperinflation is happening, now.
The angel investor referenced the recent government and Federal Reserve bailouts of Silicon Valley Bank and Signature Bank. The Treasury Department said last Sunday that it will make up to $25 billion available in support for its new Bank Term Financing Program (BTFP). He further noted that Federal Reserve Bank of Minneapolis President Neel Kashkari previously said: “There is a infinite amount of cash at the Federal Reserve.
Srinivasan explained in December last year that bitcoin is “a hedge against hyperinflation, currency debasement, bank freezes and wealth seizures.” He added: “It has already proven itself in that role, in places like Venezuela, Lebanon, Nigeria.” By comparison, he explained that the largest cryptocurrency “may eventually play a role similar to gold” as a “standard” inflation hedge, but stressed that it “takes decades to show itself.”
Believing that hyperinflation is already here, Srinivasan also urged investors to buy BTC in his tweet on Friday. The venture capitalist wrote:
Buy bitcoin and get your coins from exchanges.
$1 Million Bitcoin Bet
Furthermore, Srinivasan took a bet initiated by james medlock, who announced on Twitter on Thursday: “I bet anyone $1 million dollars that the US does not go into hyperinflation.” The former CTO of Coinbase responded:
I’ll take that bet. you buy 1 BTC. I will send $1M USD. This is ~40:1 odds as 1 BTC worth ~$26k. The term is 90 days. All we need is a mutually agreed custodian who will still be there to figure this out in the event of a devaluation of the digital dollar.
In a follow-up tweet, Srinivasan detailed: “I’m moving $2 million to USDC for the bet. I’ll do it with Medlock and one other person, enough to prove the point… Everyone else should go buy bitcoin as it will be much cheaper for you than locking it up for 90 days.”
Several people have offered to help Medlock pay 1 bitcoin for the bet. Medlock subsequently tweeted: “Is Balajis ready to do this?”
Shrinivasan replied, “Yes. Just moving money for the bet. We can do it through a smart contract, but for simplicity, old-fashioned escrow can work,” Srinivasan replied. “The trust person would need one BTC direction and one ETH address (for USDC). The assets would remain chained for 90 days.” He clarified:
Yeah BTC < $1 million in 90 days after escrow, then win and get both 1 BTC and the $1M USDC. Yeah BTC > $1 million dollars in 90 days after escrow, then I win and get all 1 BTC and the (now worthless) $1M USDC.
Medlock replied, “Sir, I think we have a deal.” Crypto exchange Binance CEO Changpeng Zhao (CZ) joined the conversation, offering to be the bet trustee. At the time of writing, BTC is trading at $27,208.
Do you agree with Balaji Srinivasan that hyperinflation is happening now? And do you think the price of bitcoin will exceed a million dollars in 90 days? Let us know in the comments section.
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