Former CEO of Coinbase and cryptocurrency investor Balaji Srinivasan lost $1 million on a wager about US inflation.
According to Quartz, the winner of the wager, the fictitious Twitter account @jdcmedlock, intends to spend some of the proceeds to help build a cat home for stray cats in the area.
Due to the U.S.’s hyperinflation, Srinivasan bet in March that Bitcoin would reach $1 million within 90 days. The Federal Reserve’s efforts to control prices, however, mean that hyperinflation is still a remote possibility, making @jdcmedlock the winner.
Experts like “Black Swan” author Nassim Nicholas Taleb mocked Srinivasan’s prognosis, which attracted considerable attention.
The creator of Galaxy Digital, Mike Novogratz, voiced worry about the possible effects of Bitcoin hitting a $1 million price, saying that it may cause anarchy and disaster.
Regardless of how the wager turned out, Srinivasan and @jdcmedlock both used their money wisely. Medlock provided $500,000 to the anti-poverty organisation GiveDirectly, while Srinivasan gave an extra $500,000 to the creators of the Bitcoin core.
Medlock will concentrate on constructing the cat home and investing in low-fee index funds after paying taxes and clearing certain debts. The winner considers such index funds to be a much superior choice over Bitcoin.
The wager has sparked debates about Bitcoin’s future and the dangers of making audacious predictions. Some experts stress the value of cautious investing and the necessity for the cryptocurrency sector to give legitimacy top priority.
