Former Coinbase CTO Bets $1M on the Bitcoin Price Action

Balaji Srinivasan, former Coinbase CTO, placed $2M on Bitcoin reaching $1M in 90 days considering he anticipated it would happen soon. 

Balaji Srinivasan, a venture capitalist and angel investor, claims that hyperinflation is already taking place. He placed $2 million on the Bitcoin price reaching $1 million in 90 days considering he anticipated it would happen soon. 

In addition, Srinivasan suggested purchasing bitcoin, which he described as “a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.”

The Wall Street Journal best-selling author was a key stakeholder at venture capital company Andreessen Horowitz and previously held the position of CTO at cryptocurrency exchange Coinbase.

The Wager on Bitcoin

All of this began on March 17 when James Medlock, an anonymous Twitter user, offered to wager anyone $2 million that the United States will not experience hyperinflation. He tweeted:

“I’ll bet anyone $1 million dollars that the U.S. does not enter hyperinflation.”  

The former Coinbase CEO accepted the wager a short while later. 

In line with the suggested provisions, Medlock will get 1 BTC and USD Coin valued at $1 million if Bitcoin’s price falls short of $1 million by June 17. Likewise, if Bitcoin is worth a minimum of $1 million by the date, Balaji is free to keep both the $1 million in USDC and the 1 BTC. 

Srinivasan noted, “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.” Medlock retorted with a tweet: “Sir, I believe we have ourselves a deal.”

Changpeng Zhao (CZ), the CEO of cryptocurrency exchange Binance, also chimed in and offered to act as the bet’s escrow. Interestingly, the former Coinbase CTO placed placed another $1 million in escrow for another bet on the same topic.

Notably, Brian Armstrong, the current CEO of the American cryptocurrency exchange Coinbase, suggested Bitcoin (BTC) as the best long-term investment in January.