Balaji Srinivasan says he is not shying away from his bold call that Bitcoin (BTC) will explode to $1,000,000 due to a US economic crisis.
In March, the former Coinbase executive placed a bet that Bitcoin would reach $1 million within three months, largely due to failing banks and hyperinflation.
He previously said that bank runs happen much faster these days as we live in a digital world.
“I think we will see an exit from the US banking system to Bitcoin in the coming weeks and months and maybe years.
The exact 90 day timeline? You know, I don’t think it’s impossible for this to happen given the speed at which digital bank runs are happening, but directional it’s much easier. Timing is hard, prepping is easy.”
While many have interpreted Srinivasan’s bet more as a statement or publicity stunt, he has say he has no intention of going back on his call.
“Nothing to come back to. I said 10% chance the fiat crisis will happen in months, 70% chance in years, 19% chance in decades, 1% in centuries. But 10% is very high and worth paying attention to. Others also believe that the probability of default by a state is always high.”
The Bitcoin bull also points out that the likelihood of a US sovereign default has recently reached an all-time high, potentially strengthening its side of the bet. He shares a chart showing that the price of credit default swaps (CDS) on US 1-year bonds has been skyrocketing recently.
“Had to work out legal details but look for a betting update soon.
Meanwhile, markets are also estimating the probability of a US state default at an all-time high. And that’s just debt ceiling driven explicit default. Does not include all routes to monetize debt.
Morgan Stanley Capital International (MSCI) analysts have warned that the effects of a US default on its debt could be potentially catastrophic.
“The consequences of a possible default by the US government extend beyond the immediate impact on government bondholders. Major market disruption and a sharp slowdown in economic activity could both be realistic possibilities.”
At the time of writing, Bitcoin is trading at $29,376, nearly 3,000% away from Srinivasan’s $1 million call.
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Featured image: Shutterstock/NextMarsMedia
