A $1 million bitcoin price bet is 97% below its target price, with backer Balaji Srinivasan opting to donate a total of $1.5 million in settlements to 3 different places.
Balaji Srinivasan – Former CTO of Coinbase
On May 2, Srinivasan, the former Coinbase chief technology officer, said the bet was “closed by mutual agreement” 45 days early.
According to the agreement, Srinivasan paid Twitter user and “hyperinflation suspect” James Medlock $500,000, donated $500,000 to a Bitcoin Core developer, and donated $500,000 to a non-profit charity for direct profit. . On May 3, he posted tweet Confirm this:
“I just burned a million dollars and told you they were printing trillions. I bet in advance that more than I promised was donated. But I’m not going to burn a million dollars randomly in public.”
Srinivasan explained that he placed the bet below his $1 million target price, around $970,000, because he believes in the “common good” and that when something goes wrong, citizens can no longer “depend on the public sector (…) to tell us.” “
“I’m sending a costly signal with my own money that something is wrong with the economy and that it won’t be the ‘soft landing’ that Powell promised – it’s something much worse.”
Despite donating a total of $1.5 million, Srinivasan still believes the U.S. economy will eventually spiral into hyperinflation. In his view, investors will rush to use Bitcoin to protect the value of their rapidly depreciating U.S. dollar and push the value of the asset to the $1 million price point.
The bet was launched on March 17 following a disagreement between Srinivasan and Twitter user James Medlock.The original Medlock was tweet He is betting $1 million on the assertion that the dollar will not fall into any kind of hyperinflation.
betting conditions Regulation If the bitcoin price fails to reach $1 million by June 17, Medlock will receive $1 million as a USDC stablecoin pegged to the U.S. dollar and an additional 1 BTC. Conversely, if the price of 1 bitcoin on that day is 1 million US dollars, then Balaji can hold 1 BTC and 1 million US dollars in USDC.
Bitcoin is currently trading at just over $28,300 with a market cap of $549 billion.
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As reported by Cointelegraph