Will the value of “Bitcoin” reach a million dollars within 90 days?
The well-known American economist James Medlock wrote on Twitter, in which he said, “I bet anyone with a million dollars that the United States will not enter into hyperinflation.”
Billionaire Balaji Srinivasan replied, “I will take this bet.. Buy 1 Bitcoin and I will send $1 million if the price of one Bitcoin does not reach this million within 90 days.”
James Medlock polled readers in a subsequent tweet, asking whether he should take that bet or not. 83% of those who participated in the vote answered yes.
During the past weeks, many fears emerged that the United States economy would enter a state of hyperinflation with the collapse of 3 banks, most notably Silicon Valley Bank (SVB), which was a lender to emerging technology companies, in addition to Silvergate Bank, a cryptocurrency lender in United State.
According to billionaire Balaji – in a series of tweets about the bet – the American banking sector will lose the confidence of a large segment of customers after the collapse of the three banks, and this will lead to a major disaster soon because there is not enough liquidity in banks to cover withdrawals, indicating that many Of the banks, they bought US Treasury bonds, whose value decreases whenever the Federal Reserve raises interest rates, and therefore the banks lose over time.
From Balaji’s point of view, as he said in his post, “the central bankers lied to depositors, that they knew the crisis since last year, and that a huge collapse was on the way, but they did not declare that; rather they allowed the banks to hide their bankruptcy.”
Buying bitcoins for fear of inflation
Billionaire Balaji likened in his tweets what bankers did in the United States to what the head of the FTX stock exchange did for the collapsed cryptocurrency trading, Sam Bankman Fried, as both use accounting tricks to deceive people, and confirmed that American banks use Americans’ savings to buy long-term US Treasury bonds. And everyone bought from the US Federal Reserve, which later reduced its value.
He pointed out that the solution to hedge against hyperinflation would be through the purchase of bitcoin, which some US states are currently doing, such as Florida and Texas, in addition to countries such as Singapore, which will make the price of bitcoin reach one million dollars in the near future.