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Former Coinbase CTO is betting $2 million on Bitcoin’s performance

Former Coinbase Chief Technology Officer Balaji Srinivasan has placed a millionaire bet on the price of Bitcoin (BTC) over the next 90 days, predicting that the cryptocurrency’s price will hit $1 million by June 17.

The bet was initiated on March 17 when pseudonymous Twitter user James Medlock offered to bet someone $1 million that the United States would not experience hyperinflation. A few hours later, the former Coinbase CTO accepted the bet.

Under the proposed conditions, if the price of Bitcoin does not reach $1 million by June 17, Medlock will gain dollar-pegged stablecoin USD Coin (USDC) and $1 million worth of 1 BTC. In the same way, if bitcoin is worth at least $1 million by that date, Balaji can keep the 1 BTC and the $1 million in USDC. Srinivasan explained in the thread:

“You buy 1 BTC. I will send 1 million USD. This is a ~40:1 ratio as 1 BTC is worth ~$26,000. The term is 90 days.”

Related: Banking Crisis: What Does It Mean for Crypto?

According to the thread, other Twitter users helped set up a smart contract with wagering requirements. Srinivasan also announced that he would move another 1 million USD in USDC for another bet on the same topic:

“I’m moving $2 million in USDC for the bet. I’ll do it with medlock and one other person, which is enough to prove the point. See my next tweet. Everyone else should just buy bitcoin as it will be a lot cheaper than locking one up for 90 days.”

Medlock and Srinivasan made the bet based on their differing views on the future of the US economy amid ongoing uncertainty about the country’s banking system.

Srinivasan argues that there is an impending crisis that will lead to the deflation of the US dollar and thus a hyperinflation scenario that would take the BTC price to $1 million. Medlock, on the other hand, is pessimistic about the upcoming hyperinflation in the country.

Meanwhile, Bitcoin’s price has reached $27,387 at the time of writing, with its year-to-date market cap of over $194 billion contributing to a 66% growth in 2023 and Wall Street bank stocks amid fears of a global banking crisis.

Also, BTC’s price has moved away from U.S. stocks for the first time in a year, up about 65% compared to the S&P 500’s 2.5% gains and the Nasdaq’s 15% decline, Cointelegraph reported.

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