• Former Coinbase CTO Balaji Srinivasan has made a bullish bet on Bitcoin, risking $1 million with James Medlock.
• The bet is that if Bitcoin does not reach $1 million in the next 90 days after funds are sent to escrow, Srinivasan will pay Medlock 1 BTC and $1 million USD in form of USDC.
• If Bitcoin reaches the milestone within the specified timeframe, Medlock will hand over the 1 BTC to Srinivasan along with other funds raised from crowd funding.
Balaji Srinivasan’s Bet
Former chief technology officer of leading crypto exchange Coinbase, placed a bullish bet on Bitcoin. Balaji Srinivasan stands a chance to walk away with $1 million in total, if his bet plays out in his favour.
Terms Of The Bet
It all started when James Medlock tweeted that he would bet $1 million that the United States does not record hyperinflation. Srinivasan would go on to respond to the tweet, stating that he would take the bet and asked him to buy 1 BTC for him and send him $1 million USD in return as well. He offered 40:1 odds as 1 BTC was worth ~$26k at that time and set a term of 90 days for this agreement . He proposed to do it via smart contract using USDC if someone could figure out how or come up with an agreed custodian who can settle this deal in case of digital dollar devaluation.
James Medlock seemed to be up for it but disclosed he didn’t have enough liquid cash for that amount so he suggested crowd funding instead and pledged 70% towards GiveDirectly charity which was agreed upon by both parties involved. Later they both decided to use smart contracts as per their initial plan so they can carry out their transaction on-chain using USDC tokens.
Conditions For Victory
Accordingly, if bitcoin hits $1million within 90 days after funds are sent then James gets all funds raised from crowdfunding plus one bitcoin whereas if it doesn’t hit the mark then Balaji gets all money back plus one bitcoin from James himself regardless of what happened during those days financially otherwise known as digital dollar devaluation .
To conclude , we can say that this is an interesting move by Balaji signalling confidence in bitcoin’s future price performance . It remains uncertain whether it will reach such heights or not but only time shall tell who will be walking away with all glory .