3 - 6 minute read
Bitcoin (BTC) has been in the news lately, mostly due to its meteoric rise in value, with the current price at $27,897 at the time of writing. Balaji Srinivasan, the former CTO of Coinbase and a prominent angel investor, is confident that Bitcoin will explode by over 3,300% in less than 90 days. He predicts that the instability caused by the Federal Reserve could make a lot of people seek refuge in Bitcoin.
Srinivasan acknowledged the difficulty in predicting every single crazy gyration that the macroeconomy is going to make. However, he is confident that the level of instability caused by the Federal Reserve means that the exit from the US banking system towards Bitcoin will continue over the next weeks, months, and perhaps years to come.
Bitcoin is in Competition with the US Dollar
According to Srinivasan, Bitcoin is actually free markets, and Bitcoin versus the US dollar is the true election. People are again voting against central planning, albeit of a different kind. The level of instability that the Federal Reserve has been causing means that Bitcoin is the parachute of choice for some, Srinivasan said.
“I think we see an exit from the US banking system towards Bitcoin over the next weeks and months and perhaps years to come. Bitcoin is actually free markets. And now we’re having the true election, which is between USD [US dollar] and BTC where people are again voting against central planning of a very different kind. And that’s actually the macro frame that I have on this – that the level of instability the Fed has been causing, they’re now in the state of like a plane [experiencing turbulence].”
Srinivasan believes that the digital bank runs will happen faster than people expect. While he acknowledges that predicting the timeline is hard, he argues that prepping is easy. Srinivasan also emphasizes that Bitcoin is not in competition with the stock market, gold, or other assets. Instead, Bitcoin is in competition with the US dollar itself.
Possible Imminent Explosion of Bitcoin
Srinivasan predicts a seriously bold outcome, predicting that Bitcoin will hit $1 million in less than three months from now. Although the exact timeline of 90 days is difficult to predict accurately, Srinivasan maintains that it’s much easier to predict directionally.
“The exact timeline of 90 days? You know, I don’t think it’s impossible that happens given how fast digital bank runs happen, but directionally it’s much easier. Timing is hard, prepping is easy.”
It’s important to note that while Srinivasan’s bold prediction may seem outrageous, he has an excellent track record in the industry. It’s worth paying attention to his predictions even if he is off by a little bit.
Implications for Traders
Srinivasan’s bold prediction could mean several things for the asset in question as well as traders. If Bitcoin is to explode in value and increase in price by over 3,300%, it would mean that those who hold Bitcoin would make a lot of money very quickly, with the potential for significant gains.
For traders, Srinivasan’s prediction could mean that Bitcoin is a good asset to invest in, especially if one believes in his ideas about the instability in the Federal Reserve, which would send people fleeing to Bitcoin. However, it’s essential to note that while Bitcoin has seen a lot of gains in recent periods, the asset remains volatile and should be approached with caution.
Conclusion
Bitcoin has seen a lot of increases in value recently, and Srinivasan’s bold prediction about an imminent explosion may seem outrageous. However, given his track record, traders should take note of what he’s saying. It’s important to remember that Bitcoin remains volatile, and traders should approach it with caution. However, Srinivasan’s ideas about the instability caused by the Federal Reserve mean that Bitcoin is an asset to watch closely in the coming weeks and months. As his prediction goes, it’s a time to grab the BTC parachute as quickly as possible.
