• Former Coinbase’s CTO Balaji Srinivasan has made a $1 million bet that Bitcoin will hit $1 million in 90 days.
• Several analysts have criticized this prediction, arguing that it would require an extreme catalyst to reach such a price.
• Bloomberg’s Matt Levine responded to Srinivasan with a question asking whether the banking system collapse would overshadow the potential value of Bitcoin.
Former Coinbase CTO Makes Big Bet on Bitcoin Price
Former Coinbase’s CTO Balaji Srinivasan has made a bet with two people, predicting that Bitcoin would hit $1 million in 90 days. As part of the agreement, Srinivasan will give $1 million in Circle’s USDC stablecoin to each party if his prediction fails.
Analysts Call Prediction Unrealistic
Several analysts have heavily criticized Srinivasan for his prediction, calling it unrealistic. They argued that it would require an extreme catalyst such as a 3600 percent increase within 90 days to match the target trading price. Bitcoin entrepreneur and educator Jimmy Song and venture capitalist Adam Cochran also weighed in, claiming that the collapse of the banking system would overshadow any potential value of Bitcoin.
Srinivanas‘ prediction is said to be inspired by the recent failure of US banks causing fear and uncertainty in the financial market. He believes that global economy will soon „redenominates on Bitcoin as digital gold.“
The market capitalization of Bitcoin which is around $536 billion as of writing would need to increase up to around $19.3 trillion for this prediction to become true according to Siblis Research published at the end of 2022 which reported US stocks were worth $40.5 trillion at that time.
Levine Responds With Question
Bloomberg’s Matt Levine also responded to Srinivasan with a very interesting question asking whether or not the banking system collapse could overshadow any potential value of bitcoin even if it was accurate valuation or not?