Balaji pays off his crazy bet that Bitcoin would reach a price of one million dollars - Start Up Gazzete
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Balaji pays off his crazy bet that Bitcoin would reach a price of one million dollars


The former Coinbase executive settled the high stake 45 days early, but remains convinced that a “fiat crisis” is inevitable.

A million dollar bet on the price of Bitcoin BTCtickers down€25,863 it has closed 97% below its target price, and its sponsor, Balaji Srinivasan, has chosen to donate a total of USD 1.5 million to three different entities as stake payment.

On May 2, Srinivasan, a former Coinbase CTO, said the bet had been “closed by mutual consent” 45 days in advance.

As a settlement, Srinivasan paid $500,000 James Medlock, a pseudonymous Twitter user and self-described “hyperinflation doubter,” donated $500,000 to Bitcoin Core developers and another $500,000 to the non-profit charity; Give Directly.

“I paid the bet early and donated even more than he told me,” Srinivasan tweeted.

“I am not in the habit of publicly burning a million dollars,” Srinivasan added, explaining that the reason for closing the bet some $970,000 below his $1 million price target for Bitcoin was because he believes “in the public good” and citizens can no longer “trust the public sector […] to tell us when it’s wrong”.


“I’ve spent my own money to send a costly and proven signal that something is wrong with the economy, and that it’s not going to be a ‘soft landing’ as Powell promises, but something far worse.”

Despite giving away a total of $1.5 million, Srinivasan remains convinced that the US economy will eventually reach a state of hyperinflation. In his view, investors will rush to lock in the value of their increasingly devalued dollars in Bitcoin, rapidly driving the asset’s value up to a price tag of $1 million.

The high stakes began on March 17 after a disagreement between Srinivasan and pseudonymous Twitter user James Medlock. Medlock initially tweeted that he would bet someone a million dollars that the US dollar would not go into any state of hyperinflation.

The conditions of the bet stipulated that if the price of Bitcoin did not reach $1 million by June 17, Medlock would receive $1 million in the USD Coin stablecoin.

USDCtickers down€0.91, as well as an additional 1 BTC. Conversely, if the price of an individual Bitcoin was valued at $1 million by the same date, then Balaji could keep the Bitcoin and $1 million in USDC.

Bitcoin is currently trading at just over $28,700 and has a market capitalization of $556 billion, according to Cointelegraph data .

Author avatar
Joshua Smith

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