Bitcoin Hit $1 Million in 90 Days, and The Dollar Will be Gone
BitcoinBTC -1.2%, Ethereum, and other major cryptocurrencies have soared this week amid a financial crisis that might trigger a large Federal Reserve earthquake.
The bitcoin price has surpassed $27,000 per bitcoin, an increase of more than 30% since last week, reaching a high not seen since June of last year. The bitcoin craze has also pushed the price of Ethereum and other major cryptocurrencies skyward.
Now, after JPMorgan analysts predicted that the Fed's new bank backstop program could inject up to $2 trillion into the financial system, technology investor and former CoinbaseCOIN +10.6% chief technology officer Balaji Srinivasan has warned that the latest banking crisis could spark hyperinflation in the United States—and advised people to "buy bitcoin now and get your coins off exchanges."
"Why will it be so quick? Hyperinflation, on the other hand, happens quickly "Srinivasan wrote a lengthy tweet justifying his confidence. "Digital pandemics (COVID), digital riots (BLM), and digital bank runs have all occurred (SVB). Things will move quickly if people verify what I'm saying and discover that the Federal Reserve has misled the amount of money in the banks. All dollar holders are eradicated."
"Why will it be so quick? Hyperinflation, on the other hand, happens quickly "Srinivasan wrote a lengthy tweet justifying his confidence. "Digital pandemics (COVID), digital riots (BLM), and digital bank runs have all occurred (SVB). Things will move quickly if people verify what I'm saying and discover that the Federal Reserve has misled the amount of money in the banks. All dollar holders are eradicated."
Srinivasan was responding to a tweet from @jdcmedlock, who said he'd "bet anyone 1 million dollars that the United States does not enter hyperinflation." Srinivasan defined the conditions of the bet as follows: if bitcoin is worth more than $1 million in 90 days, he wins; if it is worth less, he loses "The counterparty receives the million dollars... Because all other fiat currencies may and will be inflated away, we must define hyperinflation in terms of [bitcoin] vs. [US dollars]."
The bitcoin, which was put up on behalf of @jdcmedlock by pro poker player Isaac Haxton, and Srinivasan's dollars will be kept in escrow by crypto influencer and podcast host Jordan Fish, who tweets as @Cobie.
"I'm transferring $2 million into USDC for the bet," Srinivasan explained. "I'll do it with [@jdcmedlock] and one other individual, just to demonstrate the point."
"The central bank, the banks, and the bank regulators have bankrupted all of us," Srinivasan, who is credited for alerting the healthcare system to the severity of the Covid-19 outbreak, said on Twitter.
"They kept their insolvency a secret from you, the depositors. They're also planning to create $2 trillion to hyperinflate the currency. This will happen extremely rapidly in the digital era. Therefore, acquire bitcoin today and withdraw your cash from exchangers."
Silicon Valley Bank (SVB), a regional bank that specialised in startup and tech firm funding, was closed down last week after depositors became concerned that it was insolvent. Signature Bank, a crypto-friendly bank, was also closed down by regulators, possibly owing to worries about its anti-money laundering safeguards.
"Bitcoin benefits from full-fledged government-guaranteed deposit insurance, from inflation returning to 3%, allowing the central bank to become less hawkish, and from the regulatory overhang, which has impacted stablecoins such as BUSD BUSD and, more recently, USDC USDC," Markus Thielen, head of research and strategy at Matrixport, wrote in an emailed note.