Coinbase’s Ex-CTO Balaji S. Bets on BTC Kissing $1M in 90 Days

Coinbase’s ex-CTO Balaji Srinivasan has reportedly placed a bet to the tune of 1 BTC and 1 million USDC with his friend. In the said bet, Balaji contends the price of BTC would kiss the $1 million mark in 90 days due to hyperinflation. If Balaji is wrong, he would reportedly be poised to lose 1 BTC and 1 million USDC to his betting friend.

The hyperinflation and Bitcoin tweet saga began when Balaji Srinivasan quote-tweeted former Twitter CEO Jack Dorsey’s October 2021 tweet. Cautioning against hyperinflation, Jack Dorsey had tweeted:

Hyperinflation is going to change everything. It’s happening.
— jack (@jack) October 23, 2021

Quoting Jack Dorsey on March 17, 2023, Balaji advised to “Buy Bitcoin and get your coins off exchanges,” via a tweet:

Jack is right.
And hyperinflation is happening — now.
Buy Bitcoin and get your coins off exchanges. https://t.co/25y7nxABsZ pic.twitter.com/JtCWsgpGQW
— Balaji (@balajis) March 16, 2023

Sharing the said bet in question, Balaji Srinivasan tweeted:

I will take that bet.
You buy 1 BTC.
I will send $1M USD.
This is ~40:1 odds as 1 BTC is worth ~$26k.
The term is 90 days.
All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.
If someone knows how to do this… https://t.co/hhPr522PQu pic.twitter.com/6Aav9KeJpe
— Balaji (@balajis) March 17, 2023

In the said tweet above, Balaji had grabbed a bet floated by social democrat James Medlock. In his March 17 tweet, Medlock notes,

I’ll bet anyone $1 million dollars that the US does not enter hyperinflation.

Continuing his twitter thread, Balaji shared an exhaustive list of events explaining his economic reasoning in greater detail. Balaji tweeted:

Just as in 2008, the bankers lied.

This time, the central bankers, the banks, and the bank regulators have lied to all dollar holders and depositors.

This isn't your typical fractional reserve situation. The problem is that there isn't enough in the https://t.co/0r66c51uGq… pic.twitter.com/5nnxaoW9db
— Balaji (@balajis) March 17, 2023

Further to his remaining thread-based economic reasoning, Balaji tweeted:

Here are the remaining references, as Twitter has a limit on the number of links in one post.

I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. See my next tweet. Everyone else should https://t.co/R3lQp7Ffdt… pic.twitter.com/ABxBmYmv9i
— Balaji (@balajis) March 17, 2023

On March 18, James Medlock quoted American professional poker player Isaac Haxton and asked Balaji Srinivasn if he is ready for the said bet. In his tweet, Isaac Haxton said,

I wasn’t joking earlier, I have 1btc I can send to the escrow on your behalf tonight. If you’re donating 70% to give directly, I’ll take all of downside if you lose and none of the upside if you win.

Replying to Medlock’s question, Balaji Srinivasan said that he is ready and is moving his money for the bet. He suggested the task can also be done “via smart contract, but for simplicity old-fashioned escrow may work.”

Balaji noted in his tweet,

The escrow person would need one BTC address and one ETH address (for the USDC). The assets would sit on chain for 90 days. If BTC < $1M in 90 days after escrow, then you win and get both the 1 BTC and the $1M USDC. If BTC > $1M USD in 90 days after escrow, then I win and get both the 1 BTC and the (now worthless) $1M USDC.

What unfolds and who wins or loses needs to be seen.