Balaji Srinivasan, the former executive at Coinbase, recently released a statement that he will not be backing down from his bold bet that, in three months, the price of Bitcoin (BTC) would skyrocket to $1 million due to a US economic downturn. Back in March, Balaji was certain that, due to financial institutions failing, an economic crisis was swiftly approaching and as a result, Bitcoin would rise considerably. He understood that time was a huge factor in this and that due to the fact that we currently live in a digital world, bank runs could take place at a much faster rate than usual.

Equally, Balaji has mentioned that the legal details of the bet he made needed to be worked out before any further information could be released. It was also brought to his attention that markets had estimated the probability of a US debt default to be at an all time high which could possibly verify his prediction.

Additionally, Morgan Stanley Capital International observers have stated that the affects of a US debt default could be grave and could finally result in a substantial market dislocation and decreased economic activity. Although it’s still very far away from its goal, as of now Bitcoin is currently trading at a significantly high rate of $29,376.

Overall, Balaji Srinivasan is confident that his forecast of Bitcoin’s future will prove to be correct due to how close economic conditions in the US are to a financial disaster which would be extremely beneficial to the digital currency. At present, it’s too early to say what will happen within the three month timeframe that Balaji predicted, but it is sure to be an interesting time as Bitcoin continues to gain more and more traction on the financial market.



Other News from Today