Former Coinbase CTO makes $2M bet on Bitcoin’s performance

Previous Coinbase chief innovation officer Balaji Srinivasan has actually made a millionaire bet on Bitcoin’s (BTC) rate over the next 90 days, anticipating the cryptocurrency rate will reach $1 million by June 17.

The wager was initiated on March 17, when pseudonymous Twitter user James Medlock used to wager anybody $1 million that the United States would not experience devaluation. A couple of hours later on, the previous Coinbase CTO accepted the bet.

Sir, I think we have ourselves an offer https://t.co/9JYaLNo9Eq

— James Medlock (@jdcmedlock) March 18, 2023

Under the proposed terms, if Bitcoin’s rate stops working to reach $1 million by June 17, Medlock will win $1 million worth of the dollar-pegged stablecoin USD Coin (USDC) and the 1 BTC. The very same method, if Bitcoin deserves a minimum of $1 million by the date, then Balaji can keep the 1 BTC and the $1 million in USDC. Srinivasan discussed in the thread:

“You purchase 1 BTC. I will send out $1M USD. This is ~ 40:1 chances as 1 BTC deserves ~$26k. The term is 90 days.”

Related: Banking crisis: What does it suggest for crypto?

According to the thread, other Twitter users assisted establish a clever agreement with the wagering terms. Srinivasan likewise divulged that he would move another $1 million in USDC for another wager on the very same subject:

“I am moving $2M into USDC for the bet. I will do it with Medlock and another individual, enough to show the point. See my next tweet. Everybody else must simply go purchase Bitcoin, as it’ll be more affordable for you than locking one up for 90 days.”

Medlock and Srinivasan made the wager based upon their various views of the U.S. economy’s future amidst continuous unpredictability concerning the nation’s banking system.

Srinivasan argues that there’s an approaching crisis that will result in the deflation of the U.S. dollar, and hence, to a devaluation situation that would take the BTC rate to $1 million. Medlock, on the other hand, is bearish about upcoming devaluation in the nation.

On the other hand, Bitcoin’s rate has actually reached $27,387 at the time of composing, with its market capitalization including over $194 billion year-to-date to a 66% development in 2023, outshining Wall Street bank stocks amidst worries of an international banking crisis.

Likewise, for the very first time in a year, BTC’s rate has actually moved far from United States stocks, increasing about 65% compared to the S&P 500’s 2.5% gains and the Nasdaq’s 15% decrease, Cointelegraph reported.