Bitcoin rallied in its value, starting last week, after investors flocked to the digital asset following the recent collapse of three centralised banks in the US. Former CTO of Coinbase, Balaji Srinivas, made a prediction that Bitcoin price will soar to a whopping $1 million (roughly Rs. 8.25 crore) in the next 90 days — leading to June 2023. Srinivas’ outlandish estimation has seemingly left experts from the field of crypto united in their opinions — against the prophecy.
In conversation with Gadgets 360, Rohas Nagpal said it is close to impossible for the world’s oldest cryptocurrency to prove Srinivasan correct.
“I think it is very unlikely that Bitcoin will reach the massive prediction of $1 million by June. The recent bank closures have highlighted that crypto can be a safe haven for many people — but I think this prediction is not feasible,” said Nagpal, the Chief Blockchain Architect of the Hybrid Finance Blockchain (HyFi).
The back-to-back downfalls of US banks — Silvergate, Silicon Valley Bank, and Signature — has reignited the debate around the importance of DeFi and digital assets, industry experts have noted.
Bitcoin touched its nine-month high on Monday, March 20. From its value of $16,570 (roughly Rs. 13.7 lakh) on January 2, 2023, BTC price currently stands at $27,280 (roughly Rs. 22.5 lakh).
Excited about Bitcoin’s significant recovery in the market, Srinivasan tweeted his prediction over the weekend along with accusations on the US banks for mis-managing funds.
“This time, the central bankers, the banks, and the bank regulators have lied to all dollar holders and depositors. This isn’t your typical fractional reserve situation. The problem is that there isn’t enough in the banks on a mark-to-market basis to cover withdrawals. They knew this through all of last year, and communicated it internally in their coded language,” the former Coinbase CTO wrote along with his estimation.
I will take that bet.
You buy 1 BTC.
I will send $1M USD.
This is ~40:1 odds as 1 BTC is worth ~$26k.
The term is 90 days.
All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.
If someone knows how to do this… https://t.co/tcuBNd679T pic.twitter.com/6Aav9KeJpe— Balaji (@balajis) March 17, 2023
Adam Cochran, a venture capitalist, statistically weighed-in on the situation and chimed to the same tune as Nagpal.
Cochram, in a tweet thread, claimed that BTC’s rally from 2020 to 2022 was only 547 percent whereas in 2017, the rally at far lower prices was brought in 1105 percent gain. Under the circumstances, he said, Bitcoin may not swell upto Srinivasan’s expectations.
5/25
Now the proposed catalyst is pretty obvious – banking system collapse.
That through people fleeing global currency, the hyperinflation of the USD and it’s debasement, Bitcoin will become worth $1M.
— Adam Cochran (adamscochran.eth) (@adamscochran) March 18, 2023
Bitcoin’s last known all-time-high was recorded in November 2021. At the time, Bitcoin was trading at over $68,000 (roughly Rs. 56 lakh).
