A report from Coinbase ex-official Balaji Srinivasan, dated May 2, confirmed the closure of a $1 million bet on Bitcoin prices prediction. During the closure of the $1 million wager, Srinivasan donated assets worth $1.5 million to three main entities.
In March, Srinivasan struck a wagering deal with James Medlock on the Bitcoin prices. According to the wagering agreement, Srinivasan predicted that the prolonged hyperinflation would propel the Bitcoin prices to soar to $1 million on June 17.
Factors Contributing to Changes in Bitcoin Prices
He also forecasted that the value of the US dollar would plummet further.On the contrary, Medlock, commonly known as the hyperinflation doubter, was pessimist that Bitcoin would fail break the $1 million resistance level in 90 days. The two agreed to risk $1 million on the bet when the major banks in the US, Signature, Silicon Valley and Signature banks, were exiting the troubled financial market.
Reportedly when Medlock and Srinivasan placed the wager, Bitcoin prices had jumped by 10% to trade above the $28000 mark. On Tuesday, 45 days after signing the wagering agreement, Srinivasan remitted $500000 million to the Medlock account and $500000 to the Chaincode Labs Bitcoin developers. He also donated $500000 to a non-profit firm called Give Directly.
Later, Srinivasan confirmed to settle the wager when the BTC price hovered around $970000, slightly below the $1 million target, along with other donations before the 90 days. He lamented using his hard-earned money to predict on an unstable economy.
Condition for Closure of Medlock and Srinivasan Bitcoin Bet
Srinivasan restated that the inflation rate in the US will increase by 50% in the coming months. He believes that if the US experiences hyperinflation, the investor’s dollar value will depreciate, compelling them to invest in Bitcoin.
In his address, Srinivasan compared the current financial crisis with 2008. He blamed the US Treasury Secretary Janet Yellen, who worked closely with the Federal Reserve ex-chairman Ben Bernanke, for failing to alert the Americans on the implication of the previous hyperinflation.
He lamented that even Jerome Powell, the sitting chair of the Fed, has not commented on the current inflation crisis.
Srinivasan’s statement showed that the inflation rate could maintain an upward trend which was not expected. Beyond this, Srinivasan argued that the Fed made a meaningful move after the wager to develop $300 billion in three days.
Afterwards, the Fed created roughly $500 billion in two weeks in an attempt to exit the embattled banking system.
Notably, the Fed’s attempt to fast-track money printing to support the dollar value amid the current banking crisis created embroiled debates among US economists. The co-founder of BitMEX argued that the price of US currency would continue to depreciate.