Balaji pays out his crazy $1 million Bitcoin bet, 97% below the target price

Bitcoin (BTC) price bet of $1 million closed 97% below the price target, with backer Balaji Srinivasan choosing instead to donate a total of $1.5 million to three different entities as settlement.

On May 2, Coinbase’s former chief technology officer, Srinivasan, said the bet was “closed by mutual agreement” 45 days ahead of schedule.

As a settlement, Srinivasan paid pseudonymous Twitter user and “hyperinflation multiplier” James Medlock $500,000, donated $500,000 to the developers of Bitcoin Core and gave an additional $500,000 to the non-profit charity Give Directly.

“I paid off the bet early and donated more than I committed,” Srinivasan wrote on Twitter.

“I’m not used to burning a million dollars publicly,” Srinivasan added, explaining why the bet closed at about $970,000 over the target price of $1 million per bitcoin because he believes in the “common good” and that citizens can no longer “depend on the public sector.” […] To tell us when something is wrong.”

“I spent my own money to send a proven costly signal that something is wrong with the economy, that it will not be a ‘soft landing’ like Powell promises — but something much worse.”

Despite donating a total of $1.5 million, Srinivasan remains convinced that the American economy will eventually reach a state of hyperinflation. In his opinion, investors will rush to lock in the value of their rapidly declining dollars in bitcoin, quickly driving the asset’s value up to a million-dollar price.

The high-profile bet began on March 17 after a falling out between Srinivasan and pseudonymous Twitter user James Medlock. Medlock initially tweeted that he would bet someone $1 million that the US dollar would not enter into any hyperinflationary situation.

Related: How can Bitcoin hold $28K amid banking crisis?

The terms of the bet stated that if the Bitcoin price failed to reach $1 million by June 17, Medlock would receive $1 million of the USDC pegged stablecoin plus an additional 1 BTC. Conversely, if the price of an individual Bitcoin will be worth $1 million on the same date, Balaji can hold 1 BTC and $1 million in USDC.

Bitcoin is currently trading at just over $28,700 and has a market capitalization of $556 billion, according to Cointelegraph data.

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