Balaji Srinivasan’s $1M Bitcoin Bet Could Be Right, but I Hope He’s Wrong

Balaji Srinivasan’s $1M Bitcoin Bet Could Be Right, but I Hope He’s Wrong

by Virtusenews
3. April 2023
Balaji Srinivasan’s $1M Bitcoin Bet Could Be Right, but I Hope He’s Wrong

“Deutsche Bank share slide reignites worries among investors” was the BBC headline when everything clicked. It added to the increasingly worrying set of events that have affected the global banking system over the past few weeks: another sign that we may be at the dawn of the Great Financial Crisis 2.0. Except this time we know the playbook, because the major commercial banks are too big to fail and governments will bail them out.

Peter McCormack is the creator and host of the What Bitcoin Did podcast and chairman of the Real Bedford football club.

That the U.S. government’s debt is at unsustainable levels is neither here nor there, we know that this type of problem is one that politicians are willing to kick down the road. For politicians the present objective is always to maintain voter confidence and, thus, power. The yo-yoing between rate hikes to protect against inflation and the Federal Reserve’s quantitative easing program to protect the banks isn’t designed to resolve the United State’s primary, systemic issue: expenditure significantly exceeding income. Instead, it seems the Fed and U.S. Treasury Department are working overtime to protect the dollar’s position as the global world reserve currency.

These bandages aren’t sterile and carry a threat of hyperinflation. As a result, the global economic system looks set for a historic correction at some indeterminate point in the near future.

A common question within the Bitcoin community is whether the fear of imminent hyperinflation is drawing investment back into bitcoin. Is bitcoin’s recent price riseconfirmation that the inflation hedge thesis, which many commentators have dismissed, is back in play?

Linking cause and effect in markets is a fool’s errand, particularly for someone who interviews experts but doesn’t profess to be one. But heck, let’s give it a go.

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