Former Coinbase CTO Balaji Srinivasan details a very bold Bitcoin (BTC) price prediction.
In a series of tweets, Srinivasan says he is willing to bet BTC will explode to a staggering $1 million in just 90 days from now.
He bet it would be with professional poker player Isaac Haxton, with part of the proceeds going to the GiveDirectly charity.
The investment guru tells his 780,400 Twitter followers that he thinks banks are in deep trouble after investing heavily in long-term US Treasuries, and that the Bitcoin boom will coincide with a major bust. economic.
According to Srinivasan, banks pounced on government bonds two years ago when fiscal stimulus at the height of the Covid-19 pandemic slashed demand for typical loans. The investor also says that financial institutions made the decision to accumulate a huge 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 that he would be ‘patient’ with rate hikes until November 3, 2021. He then got renominated on November 22, 2021 and raised rates much faster than anyone expected, which even Yellen and the FDIC [Federal Deposit Insurance Corporation] I admit it caused the current banking crisis… Going from ten years of near-zero interest rates in the 2010s was a surprise attack on all dollar holders… So anyone betting on long-term Treasuries term died in 2021. And now anyone who bets on short term Treasuries will be killed in 2023.”
srinivasan says that the threat of a banking sector collapse puts Bitcoin in a position to rise rapidly 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 when the world renames Bitcoin as digital gold, returning to a model very similar to the one before the 20th century. What will happen is that individuals, then companies, and then large funds will buy Bitcoin. Then sovereigns like El Salvador and small crypto-friendly countries.
The big move will be when a US state like Florida or Texas, or a “normal” country like Estonia, Singapore, Saudi Arabia, Hungary or the United Arab Emirates, 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” since we now live in a digital world.
At the time of writing this article, Bitcoin is trading at $27,538.
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