Balaji Srinivasan says it is a "costly signal that there’s something wrong with the economy."
In a twist of fate, Balaji Srinivasan's brave $1 million Bitcoin (BTC) bet ends 97% short of its goal, leading to a generous donation of $1.5 million across three different entities.
The bet started on March 17th after a disagreement between Srinivasan and Twitter user James Medlock occurred.
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Medlock initially tweeted that he'd bet $1 million that the US dollar wouldn't experience hyperinflation. Srinivasan responded to the tweet, accepting the bet.
The terms of the bet stipulated that if Bitcoin's price didn't reach $1 million by June 17th, Medlock would receive $1 million in the stablecoin USD Coin (USDC) and an additional 1 BTC. Conversely, if Bitcoin reached $1 million by the deadline, Srinivasan could keep the 1 BTC and $1 million in USDC.
Former Coinbase CTO Srinivasan announced on May 2nd that the bet was "closed out by mutual agreement" 45 days ahead of its deadline.
As part of the settlement, he paid "hyperinflation doubter" James Medlock $500,000, donated $500,000 to Bitcoin Core developers and gifted an extra $500,000 to the non-profit charity Give Directly.
In a tweet, Srinivasan explained that he settled the bet early and donated more than initially committed. He jokingly mentioned, "I'm not in the habit of publicly burning a million bucks."
His decision to close the wager at a staggering $970,000 below the target price of $1 million per Bitcoin was driven by his belief "in the public good" and the idea that people can't depend on the public sector to warn about forthcoming issues.
I spent my own money to send a provably costly signal that there’s something wrong with the economy, and that it's not going to be a ‘soft landing’ like Powell promises — but something much worse.
Despite donating $1.5 million, Srinivasan remains firm in his conviction that the American economy will eventually face hyperinflation, leading investors to flock to Bitcoin, pushing its value to $1 million.
Balaji Srinivasan's unorthodox bet has concluded with a charitable twist, reminding crypto industry players that even high-stakes wagers can have a positive impact on society.
At the time of writing, Bitcoin (BTC) retails for $28,594.63, recording a 2.17% price increase in the last 24 hours.
