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The bitcoin price has doubled from its late-2022 lows to around $30,000 per bitcoin, while ethereum and other top ten BNB cryptocurrencies
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Now, tech investor Balaji Srinivasan has explained the rationale behind his $1 million bitcoin price bet, telling a bitcoin and crypto conference that he's "burning a million to tell you they're printing trillions."
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The bitcoin price has found its footing this year after last year's sudden selloff wiped out trillions ... [+]
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Srinivasan, an early bitcoin investor and former CTO at cryptocurrency exchange Coinbase, made headlines in March when he predicted that the US dollar would enter a hyperinflationary death spiral and the price of bitcoin would rise to $1. million by June 16, an increase of more than 3,000% from its current level that would give bitcoin a market capitalization of around $20 trillion.
However, he has now dialed that back in but remains highly skeptical of the US financial system due to the proliferation of government money printing to prop up fragile banks, calling his bet a " directional sign" to "raise awareness of the fiduciary crisis.
"I don't know how many months, years, we have," said Balaji. during CoindeskConsensus Conference this week. "If you think like a trader, you think that too soon is the same as being wrong. If you think like a prepper, the hell is that the truth is too late."
"Just to quantify it, I think we have a 10% chance of a very serious problem emerging in months, 70% in years, 19% in decades and 1% in a century or so," Balaji said, referring to to a so-called "black swan" event. "Could it take 900 days or even 90 months? It's possible, I don't have a 100% chance. I may be wrong, but I'm burning a million to tell you that you're printing billions."
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The bitcoin price has rebounded this year, but remains well below its peak of nearly $70,000 per ... [+]
Forbes Digital Assets
This week, the banking crisis that led to the demise of Silicon Valley Bank, Credit Suisse, and crypto banks Signature and Silvergate earlier this year has hit San Francisco-based First Republic.
Government officials and agencies are in talks to bail out First Republic after it suffered $100 billion in losses and its share price plunged 98% this year, while interest rates, which have soared at a record pace, in the last 12 months, they have weighed heavily on the value of the bank's mortgage portfolio and other assets.
"Trust the Fed, it ends up dead," Balaji added. "The Fed lied, the banks died."
New concerns swirling around the US banking system have pushed the price of bitcoin higher this week, mirroring a similar boom for bitcoin, ethereum, BNB, XRP, polygon, dogecoin and solana earlier this year. during the Silicon Valley Bank banking crisis.
"The revelation of First Republic Bank's fragile business condition has fueled bitcoin's rally to $29,000, however the price was rejected at the psychological $30,000 level on Wednesday and has been struggling to break above that level ever since," Yuya Hasegawa, Tokyo0-based bitcoin market and crypto analyst at Bitbank, said in an emailed note.
