"It's not June yet but he's not sure BTC will reach $1 million?"
Coinbase's former chief technology officer (CTO) Balaji Srinivasan said that he ended a $1 million bet on Bitcoin (BTC) he made earlier by donating $1.5 million to three different entities as settlement.
In mid-March 2023, Srinivasan predicted that BTC would reach $1 million by mid-June following the bank crisis that hit would be the cause of the decline in the value of the United States (US) dollar.
But he who has hedged his bets has spent his own money to send a signal that the economy may get worse due to the actions of Federal Reserve (Fed) Chairman Jerome Powell.
This is because during the 2008 global financial crisis, US Treasury Secretary Janet Yellen and then Fed chairman Ben Bernanke were unable to deal with the problem, therefore Srinivasan thinks Powell will be like them.
He also warned that the crisis could arrive faster than previously imagined after the Fed took two days to print $300 billion during the Silicon Valley Bank (SVB) failure and two weeks for the banking system to lose $500 billion.
Even so, economist and former Fed employee Danielle DiMartino Booth said that they are not focusing entirely on money printing but rather on the Fed's window discount* and other loans by national banks.
*The central bank loan facility aims to help commercial banks manage short-term liquidity needs
Returning to the closing description of the $1 Million bet, Srinivasan has donated $500,000 to fund the development of BTC Core at Chaincode Labs, $500,000 to Give Directly and the same amount to a Twitter user nicknamed James Medlock.
