Balaji Srinivasan, a venture capitalist and former CTO of Coinbase, claimed that in 90 days the US economy would enter a period of hyperinflation, catapulting BTC to $1 million.
Balaji, whose crypto venture Earn.com was acquired by Coinbase in 2019, also offered to pay $1 million in BTC to the top 1,000 tweeters warning of a stealth financial crisis.
Balaji bets BTC to $1 million
“…I’m setting up the BitSignal. $1 million in BTC to warn us about the covert financial crisis. $1,000 a tweet, for the top 1,000… They hid their bankruptcy from you, the depositors. And they’re about to print $2 trillion to hyperinflate the dollar… So buy bitcoin *now* and get your coins off the exchanges,” Balaji tweeted March 16.
The next day he went to hammer and tongs. “THE BANKS ARE INSOLVENT We should have learned to distrust the bankers after the 2008 crisis. Back then, they used complex language to hide the simple fact that the mortgages were bad. And today they do it to hide that the money is gone. Not in one bank, in all banks. And they knew it months ago…” he said.
In the last salvo, he said Signature and Silvergate were forced to shut down because they were escrowing crypto.
While Balaji’s tweets garnered huge reactions, including from Binance CEO Changpeng Zhao, who appeared greatly amused by the turn of events, famed cryptocurrency critic Molly White pointed to the self-interest of venture capitalists attributing the demise of traditional banking and finance to paint .
“It’s not like we can put the genie back in the bottle! ” – VC who will benefit massively from the spirit release and has worked tirelessly to release this spirit,” she tweeted in response to Balaji’s tweet, adding, “I’m pretty good at putting cats in bags too, how it happens.”
Buy the Pivot: Arthur Hayes
Arthur Hayes, co-founder of crypto exchange BitMEX, has urged investors to buy bitcoin, previously saying that US banks have an unrealized loss of $620 billion. And the US government is planning a $4.4 trillion bailout for the banking industry.
The huge bailout will give a boost to the entire financial sector, including cryptocurrencies, especially bitcoin and other leading coins. During Covid-19, when the US government pumped $4.19 trillion into the economy, bitcoin surged to $69,000, he argued.
Banking crisis in focus
The regulatory heat inflicted on cryptocurrency companies over the past few weeks has given way to a much bigger problem – the banking crisis of 2023. In about a week, three mainstream US banks went out of business, leaving a huge trail of institutional and individual depositors in their wake without money access to the funds in their bank accounts. This also sparked massive bank runs involving hundreds of regional banks.
The banks’ liquidity crunch is said to have been caused by Treasury bonds becoming cheaper after the Fed Reserve hiked interest rates in recent months to tame inflation, which at one point was at a 40-year high.
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