“You purchase 1 BTC. I’ll ship $1M USD.”
These have been the stakes that enterprise capitalist Balaji Srinivasan proposed over Twitter to pseudonymous author and self-described “tax enthusiast” James Medlock on March 17. The guess? Inside 90 days, one bitcoin will likely be value $1 million.
Medlock, who had jokingly tweeted earlier that he would “guess anybody $1 million {dollars} that the US doesn’t enter hyperinflation,” rapidly accepted the phrases. With bitcoin hovering round $26,000, Srinivasan had made an roughly 38–1 wager that “hyperbitcoinization” would unfold over the following three months because the Federal Reserve devalued the U.S. greenback to backstop the nation’s shaky banks with new infusions of money.
Critics have mentioned the guess is a promotional ploy to launch a brand new media model or to pump the price of bitcoin to extend the worth of his holdings. His doubters embody George Mason College economist Tyler Cowen, who predicts that “the US will muddle by its present issues and patch up the current on the expense of the longer term,” and bitcoin mega-booster Saifedean Ammous, creator of The Bitcoin Customary, who writes “I really feel soiled sounding bearish on bitcoin, however I don’t assume bitcoin will hit $1m in 90 days & and I don’t assume the greenback can presumably hyperinflate this rapidly.”
So what’s Srinivasan pondering?
Discover out this Thursday at 1 p.m. Japanese as Srinivasan joins Motive‘s Zach Weissmueller and economist Lawrence White, creator of Higher Cash: Gold, Fiat, or Bitcoin? to debate the guess and their analyses of the state of the U.S. banking system. Watch and depart questions and feedback on the YouTube video above or on Motive‘s Fb web page.
Present notes:
Balaji Srinivasan’s guess with James Medlock—https://twitter.com/balajis/standing/1636822077775941633
Federal Reserve to offer further funds for banks, backstopped with $25 billion from the Treasury—https://archive.is/qrZYB#selection-4839.93-4839.251
Bloomberg: Fed may inject as much as $2 trillion—https://www.bloomberg.com/information/articles/2023-03-16/jpmorgan-says-fed-s-loans-will-provide-2-trillion-of-liquidity
Research on uninsured financial institution deposits in 2023—https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4387676
Bloomberg: Fed low cost window lending surpasses $164 billion -https://www.bloomberg.com/information/articles/2023-03-16/banks-rush-to-backstop-liquidity-borrow-164-8-billion-from-fed#xj4y7vzkg
St. Louis Fed: Fed stability sheet since 2004—https://fred.stlouisfed.org/graph/?id=WALCL
Tyler Cowen: The banking disaster will not wreck the financial system—https://marginalrevolution.com/marginalrevolution/2023/03/this-banking-crisis-wont-wreck-the-economy.html
Ammous Safeidean: A financial institution disaster is deflationary—https://twitter.com/saifedean/standing/1638453109033664513
FedNow Service launches in July: https://www.federalreserve.gov/newsevents/pressreleases/other20230315a.htm
Jerome Powell addresses banking disaster and charge hikes—https://www.youtube.com/watch?v=WK6EfnYkejc
Janet Yellen voices concern for a ‘few’ banks—https://www.youtube.com/reside/je-6S97KKqY?characteristic=share&t=4049
DeSantis introduced Digital Invoice of Rights—https://www.youtube.com/watch?v=mLPcqRS8978