Former Coinbase chief technology officer Balaji Srinivasan is detailing a seriously bold Bitcoin (BTC) price prediction.
In a series of tweets, Srinivasan says he’s willing to bet BTC explodes to a staggering $1 million in just 90 days from now.
The bet would be with professional poker player Isaac Haxton, with part of the proceeds going toward the charity GiveDirectly.
The investment guru tells his 780,400 Twitter followers that he thinks banks are in serious trouble after heavily investing in long-dated US treasuries, and Bitcoin’s rise will coincide with a major economic crash.
According to Srinivasan, the banks binged on government bonds two years ago when fiscal stimulus at the height of the Covid-19 pandemic drastically reduced the demand for typical loans. The investor also says that financial institutions made the decision to accumulate an enormous amount of government bonds under the impression that the Federal Reserve would keep interest rates low.
“They had good reason to believe this. Powell said he’d be ‘patient’ on rate hikes as late as Nov 3rd 2021. Then he got renominated on Nov 22nd 2021, and hiked rates much faster than anyone had expected – which even Yellen and the FDIC [Federal Deposit Insurance Corporation] admit caused the current banking crisis… Hiking from ten years of near zero interest rates in the 2010s was a surprise attack on every dollar holder… So anyone who bet on long-term Treasuries got killed in 2021. And now, anyone who bets on short-term Treasuries is going to get killed in 2023.”
Srinivasan says that the threat of a banking sector meltdown puts Bitcoin in a position to rapidly ascend in value against the US dollar. The angel investor believes that BTC could meteorically rise to $1 million in just 90 days.
“This is the moment that the world redenominates on Bitcoin as digital gold, returning to a model much like before the 20th century. What’s going to happen is that individuals, then firms, then large funds will buy Bitcoin. Then sovereigns like El Salvador and tiny crypto-friendly countries.
The big move will be when a US state like Florida or Texas, or a ‘normal’ country like Estonia, Singapore, Saudi, Hungary, or UAE buys BItcoin. And when [Prime Minister Narendra Modi] tells India’s central bank to buy Bitcoin, even as a hedge, it’s over.”
According to the angel investor, everything will happen “very fast” as we now live in a digital world.
At time of writing, Bitcoin is trading for $27,538.
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