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A $1 million Bitcoin (BTC) price wager has been concluded 97% below its target price, with its supporter Balaji Srinivasan opting to donate a total of $1.5 million to three separate organizations as a resolution.
On May 2, Srinivasan, the former chief technology officer at Coinbase, announced that the wager had been “closed out by mutual agreement” 45 days prior to the deadline.
As part of the resolution, Srinivasan compensated pseudonymous Twitter user and self-proclaimed “hyperinflation doubter” James Medlock with $500,000, contributed $500,000 to Bitcoin Core developers, and allocated an additional $500,000 to the non-profit organization Give Directly.
I just burned a million to tell you they're printing trillions. pic.twitter.com/pX5622rjUO
— Balaji (@balajis) May 2, 2023
“I settled the bet early and donated even more than I had pledged,” Srinivasan tweeted.
“I’m not accustomed to publicly burning a million dollars,” Srinivasan remarked, clarifying that the decision to conclude the wager approximately $970,000 below his target price of $1 million per Bitcoin stemmed from his belief “in the public good” and that citizens can no longer “depend on the public sector […] to inform us when something’s amiss.”
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“I spent my own funds to send a provably costly signal that there’s something wrong with the economy, and that it's not going to be a ‘soft landing’ as Powell suggests — but something significantly worse.”
Despite donating a total of $1.5 million, Srinivasan remains convinced that the American economy will ultimately experience hyperinflation. In his perspective, investors will rush to safeguard the value of their swiftly-depreciating dollars in Bitcoin, quickly propelling the asset’s value to reach a price of $1 million.
The notable wager was initiated on March 17 following a disagreement between Srinivasan and pseudonymous Twitter user James Medlock. Medlock initially tweeted that he would wager $1 million that the U.S. dollar would not enter any state of hyperinflation.
Related: How can Bitcoin hold $28K amid the banking crisis?
The terms of the wager specified that if Bitcoin’s price did not reach $1 million by June 17, Medlock would receive $1 million in the dollar-pegged stablecoin USD Coin (USDC) along with an additional 1 BTC. Conversely, if the price of a single Bitcoin were to be valued at $1 million by the same date, then Balaji could retain the 1 BTC and the $1 million in USDC.
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/hhPr522PQu pic.twitter.com/6Aav9KeJpe— Balaji (@balajis) March 17, 2023
Bitcoin is currently trading at just over $28,700 and has a market capitalization of $556 billion according to Cointelegraph data.
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