If I offered you a bet that Bitcoin would reach 1 million within 90 days, would you accept it?
This is what happened yesterday on Twitter!
The story began with James Medlock’s tweet denying the possibility of America experiencing hyperinflation.
James is so sure of his word that he says he’s willing to bet a million dollars on it.
But the surprise was when Balaji Srinivasan, the former CTO of Coinbase, replied that he was ready to bet that Bitcoin would reach $1,000,000 within 90 days.
And if that doesn’t happen, James will get the million dollars.
But why would Balaji take this crazy bet?
If the price of Bitcoin reaches $1,000,000, the circulating market cap will exceed $19 trillion.
to get Imagine this number, America’s GDP for 2021 was $23 trillion.
Balaja’s arrival of this prediction is not based on a price analysis or optimism about the impact of the bitcoin halving.
The reason explained by Balaja is hyperinflation!
Balaja’s theory is that the American economy will soon face a major disaster, and the reason behind this is that there is not enough liquidity in the banks to cover the withdrawals.
As many banks have purchased US Treasury bonds, whose value decreases whenever the Fed raises interest rates.
But assuming Balaja’s prediction is correct, Is 90 days enough for a catastrophe of this magnitude to occur in America and the dollar to collapse?
Balaja thinks this is very likely because it has happened before.
Balaja cites the example of the hyperinflation that Hungary faced in 1945, due to which prices doubled within 15 hours.
Balaja believes that this scenario will really begin when some US states such as Florida and Texas and countries such as Singapore, Saudi Arabia and the UAE buy bitcoins to hedge against inflation.