Balaji Srinivasan, Coinbase’s (NASDAQ:COIN) former CTO, made a bold prediction on Saturday. He believes Bitcoin’s (CRYPTO: BTC) price could skyrocket to $1 million by June 17 due to the rapid devaluing of the U.S. dollar in the coming months.
What Happened: According to Srinivasan, the global economy is on the verge of a major shift — a “hyperbitcoinization”— which could spell the end of the dollar as the world’s dominant currency. As he explains, as traditional currencies enter a period of rapid hyperinflation, the global economy will turn to Bitcoin as a “digital gold” as the new, preferred currency.
I will take that bet.
You buy 1 BTC.
I will send $1M USD.
This is ~40:1 odds as 1 BTC is worth ~$26k.
The term is 90 days.
All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.
If someone knows how to do this… https://t.co/tcuBNd679T pic.twitter.com/6Aav9KeJpe
— Balaji (@balajis) March 17, 2023
Srinivasan’s prediction comes at a time of great fear and uncertainty in financial markets, as a series of bank failures has rocked the United States.
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Analyst’s Take: Crypto analyst Miles Deutscher does not agree with Srinivasan and said that Bitcoin won’t hit $1 million in 90 days, but he believes this bet has spurred on the conversation around the “hyperbitcoinization theory”.
The analyst said Srinivasan has cleverly “used an outlandish bet as a vehicle to perpetuate this narrative.”
#Bitcoin won’t hit $1m in 90 days.
But the hyperbitcoinization theory just got a whole lot more attention.@balajis is using his outlandish bet as a vehicle to perpetuate this narrative. And it’s working.
— Miles Deutscher (@milesdeutscher) March 19, 2023
Venture capitalist Adam Cochran discussed how realistic Srinivasan’s recent bold prediction could be. He said to put that into perspective, the 2017 rally at far lower prices was only a 1,105% gain and the rally from 2020 to 2022 was only 547%. Cochran considered the potential fallout of a prediction of this magnitude and the chances of success.
He said the unprecedented growth in Bitcoin, even with large volatility spikes driven by extraordinary events, pales in comparison to what could be achieved with an even more extreme catalyst. That catalyst could be a collapse of the banking system, where people attempt to flee traditional global currencies due to hyperinflation and debasement, driving the value of Bitcoin up to $1 million.
But the problem that Cochran suggests is that “alternative wealth assets (such as Bitcoin) are great when you expect an economic risk, not when you expect a system risk.”
“But Adam, how can you be so sure?! Won’t people need a safe haven asset when all the banks go down and we’re fist fighting in the street and creating Mad Max style clans to fight over water?!”
Of course fucking not.
— Adam Cochran (adamscochran.eth) (@adamscochran) March 18, 2023
Price Action: At the time of writing, BTC was trading at $27,340, up 0.63% in the last 24 hours, , according to Benzinga Pro.
Read More: Bitcoin, Ethereum, Dogecoin Mixed After Credit Suisse Deal: Balaji Srinivasan Sees Banking Crisis Boosting Apex Crypto To $1M