Balaji Srinivasan, a venture capitalist and angel investor, has shared his belief that hyperinflation is currently happening, and has made a million-dollar bet that the price of Bitcoin will soon hit $1 million. Srinivasan has advocated for investors to buy Bitcoin as a “hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.”
Srinivasan, who is also a tech founder and a Wall Street Journal bestselling author, previously served as the CTO of Coinbase, a cryptocurrency exchange. In response to a tweet made by former Twitter CEO Jack Dorsey in October 2021, where he stated that hyperinflation will happen “soon” and will “change everything,” Srinivasan tweeted on Friday, “Jack is right. Hyperinflation is happening – now.” Srinivasan cited the recent government and Federal Reserve bailouts of Signature Bank and Silicon Valley Bank, and Federal Reserve Bank of Minneapolis President Neel Kashkari’s statement that there is an “infinite amount of cash” at the Federal Reserve.
Srinivasan has been a strong advocate for Bitcoin, stating in December 2021 that it provides a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure. He added that Bitcoin has already proven its worth in this role in countries such as Venezuela, Lebanon, and Nigeria. Srinivasan believes that Bitcoin also has the potential to become a hedge against “standard” inflation, but this will take decades to show.
At present, Srinivasan has taken a bet initiated by James Medlock that the US will not enter hyperinflation. Srinivasan responded to Medlock’s bet with a proposal that Medlock buy 1 BTC and he will send $1 million. The venture capitalist plans to move $2 million into USDC for this bet, and it requires a mutually agreed custodian who will be able to settle the bet in the event of a digital dollar devaluation. Other parties have already offered to help Medlock put up the 1 BTC for the bet, and crypto exchange Binance CEO Changpeng Zhao has offered to be the escrow for the bet.
Srinivasan has encouraged investors to buy Bitcoin and to move their coins off exchanges. He believes that Bitcoin can guard against hyperinflation, monetary debasement, and wealth seizure. Whether Bitcoin will achieve a gold-like role as a hedge against “standard” inflation is yet to be seen, but Srinivasan’s bet indicates his strong faith in the cryptocurrency.
In conclusion, Srinivasan’s belief that hyperinflation is happening now and his million-dollar bet on Bitcoin’s price reaching $1 million within 90 days reflect his conviction that the cryptocurrency is a significant holding in times of economic instability. However, investors should be aware of the risks of investing in cryptocurrencies and conduct their own research before making any investment decisions.