Bitcoin to Shatter $1,000,000, Says Former Coinbase Executive
Balaji Srinivasan, the former CTO of Coinbase, has made a bold prediction about the price of Bitcoin (BTC).
In a series of tweets, he suggested that BTC could reach an astounding $1 million in value in just 90 days from now, with part of the proceeds from a bet going towards the charity GiveDirectly.
Yes. Just moving money for the bet. We can do it via smart contract, but for simplicity old-fashioned escrow may work.
The escrow person would need one BTC address and one ETH address (for the USDC). The assets would sit on chain for 90 days.
If BTC < $1M in 90 days after… https://t.co/TP82ecUf9J
— Balaji (@balajis) March 18, 2023
Srinivasan explained his reasoning behind this prediction by pointing out the significant trouble that banks are in after heavily investing in long-dated US treasuries. He believes that Bitcoin’s rise will coincide with a significant economic crash and that the cryptocurrency will be in a prime position to rapidly ascend in value against the US dollar.
Srinivasan suggests that banks binged on government bonds two years ago when fiscal stimulus at the height of the Covid-19 pandemic drastically reduced the demand for typical loans. The financial institutions then decided to accumulate an enormous amount of government bonds under the impression that the Federal Reserve would keep interest rates low. However, Powell’s decision to hike rates much faster than anyone had expected in November 2021 caused a banking crisis that even Yellen and the FDIC admit was brought on by the rate hike.
Srinivasan believes that hiking from ten years of near-zero interest rates in the 2010s was a surprise attack on every dollar holder. He also predicts that anyone who bets on short-term Treasuries is going to get “killed” in 2023. Anyone who bet on long-term Treasuries was suffered in 2021.
According to Srinivasan, the threat of a banking sector meltdown puts Bitcoin in a position to rapidly ascend in value against the US dollar. He believes BTC could skyrocket to $1 million in 90 days as individuals, firms, and large funds start buying the asset. Sovereigns such as El Salvador and other crypto-friendly countries will follow suit, and the big move will happen when a US state like Florida or Texas, or a “normal” country like Estonia, Singapore, Saudi, Hungary, or the UAE buys Bitcoin.
If a country like India buys BTC as a hedge, it will be game over for traditional currencies. Srinivasan predicts that everything will happen quickly, as we live in a digital world.
Despite the boldness of his prediction, it remains to be seen whether Srinivasan’s projection will come true. However, his views highlight that many investors see Bitcoin as a viable hedge against inflation and a potential safe haven in times of economic uncertainty.