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 just burned a million to tell you they print trillions. pic.twitter.com/pX5622rjUO
Balaji (balajis) May 2, 2023
“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.
I’ll take that bet.
You buy 1 bitcoin.
I will send 1 million US dollars.
These are odds of ~40:1 since 1 BTC is worth $26,000.
The term is 90 days.
All we need is a mutually agreed trustee who will still be there to settle this in the event of a digital dollar devaluation.
If someone knows how to do this… https://t.co/hhPr522PQu pic.twitter.com/6Aav9KeJpe
Balaji (balajis) March 17, 2023
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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