• Balaji Srinivasan, former Coinbase CTO and venture capitalist, has predicted that Bitcoin will reach $1 million within 90 days and explained that his $2 million gamble is not about making money, but settling an ideological matter surrounding U.S. dollar inflation.
• The prediction was not initially proposed by Balaji, but by James Medlock on Twitter who called it „the most profitable shitpost in history“.
• Balaji’s theory about „hyperbitcoinization“ involves the idea that Bitcoin could eventually replace the U.S. dollar as a global reserve currency and become the world’s first truly global currency.
Ex-Coinbase CTO Proposes Bet
Former Coinbase CTO and venture capitalist Balaji Srinivasan has recently proposed a bold bet: that Bitcoin will moon to $1 million within 90 days. His $2 million gamble isn’t about making money, but settling an ideological matter surrounding U.S. dollar inflation. The prediction was not initially proposed by Balaji himself, but by James Medlock on Twitter who called it „the most profitable shitpost in history“.
The Simon-Ehrlich Bet
Balaji clarified that last week’s bet was similar to the famous Simon-Ehrlich bet which resolved a difference of opinion between libertarians and progressives back in 1980. The bet between professors Julian Simon and Paul Ehrlich aimed to settle their conflicting theories around human overpopulation and resource scarcity; with Simon ultimately winning the bet when Ehrlich sent him a cheque for $576 in October 1990.
Hyperbitcoinization Theory
Balaji’s theory about „hyperbitcoinization“ involves the idea that Bitcoin could eventually replace the U.S. dollar as a global reserve currency and become the world’s first truly global currency – essentially becoming too big to fail or be regulated by any single nation state or government authority.. This would result in hyperinflation for any other fiat currencies used around the world – including traditional institutions such as banks – rendering them obsolete due to their lack of value compared to Bitcoin’s increasingly powerful buoyancy against economic downturns or governmental interference from central banking authorities .
Motivation Behind Bet
Essentially, this bet is less about making money off of crypto investments than it is proving a point regarding how valuable cryptocurrency can be going forward as a global store of wealth if allowed to reach its full potential despite governmental opposition or market volatility; something many advocates (including Balaji) believe will happen sooner rather than later given current trends with blockchain technology adoption worldwide .
Conclusion
Whether or not Balaji will win his bet remains to be seen; however his motivations behind it are quite clear – this wager isn’t just financial speculation but an attempt at demonstrating what he believes is both achievable and indeed inevitable should governments allow crypto technology to flourish without interference .