Betting

Former Coinbase CTO makes $2M bet on Bitcoin’s performance

Balaji Srinivasan has predicted Bitcoin will reach $1 million within 90 days as a consequence of hyperinflation in the United States.

Former Coinbase chief technology officer Balaji Srinivasan has made a millionaire bet on Bitcoin’s (BTC) price over the next 90 days, predicting the cryptocurrency price will reach $1 million by June 17. 

The wager was initiated on March 17, when pseudonymous Twitter user James Medlock offered to bet anyone $1 million that the United States would not experience hyperinflation. A few hours later, the former Coinbase CTO accepted the bet.

Under the proposed terms, if Bitcoin’s price fails to reach $1 million by June 17, Medlock will win $1 million worth of the dollar-pegged stablecoin USD Coin (USDC) and the 1 BTC. The same way, if Bitcoin is worth at least $1 million by the date, then Balaji can keep the 1 BTC and the $1 million in USDC. Srinivasan explained in the thread: 

“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.”

Related: Banking crisis: What does it mean for crypto?

As per the thread, other Twitter users helped set up a smart contract with the betting terms. Srinivasan also disclosed that he would move another $1 million in USDC for another wager on the same topic: 

“I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. See my next tweet. Everyone else should just go buy Bitcoin, as it’ll be much cheaper for you than locking one up for 90 days.”

Medlock and Srinivasan made the wager based on their different views of the U.S. economy’s future amid ongoing uncertainty regarding the country’s banking system.

Srinivasan argues that there’s an impending crisis that will lead to the deflation of the U.S. dollar, and thus, to a hyperinflation scenario that would take the BTC price to $1 million. Medlock, on the other hand, is bearish about upcoming hyperinflation in the country.

Meanwhile, Bitcoin’s price has reached $27,387 at the time of writing, with its market capitalization adding over $194 billion year-to-date to a 66% growth in 2023, outperforming Wall Street bank stocks amid fears of a global banking crisis.

Also, for the first time in a year, BTC’s price has shifted away from United States stocks, rising about 65% compared to the S&P 500’s 2.5% gains and the Nasdaq’s 15% decline, Cointelegraph reported.

Former Coinbase CTO makes $2M bet on Bitcoin’s performance

Balaji Srinivasan has predicted that Bitcoin will reach $1 million within 90 days due to hyperinflation in the United States.

Former Coinbase chief technology officer Balaji Srinivasan has made a millionaire bet on Bitcoin’s (BTC) price over the next 90 days, predicting the cryptocurrency will reach $1 million by June 17. 

The wager was initiated on March 17, when pseudonymous Twitter user James Medlock offered to bet anyone $1 million that the United States would not experience hyperinflation. A few hours later, the former Coinbase executive accepted the bet.

Under the proposed terms, if Bitcoin’s price fails to reach $1 million by June 17, Medlock will win $1 million worth of the dollar-pegged stablecoin USD Coin (USDC) and 1 BTC. In the same way, if Bitcoin is worth at least $1 million by the date, then Balaji can keep the 1 BTC and the $1 million in USDC. Srinivasan explained in the thread: 

“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.”

Related: Banking crisis: What does it mean for crypto?

Per the thread, other Twitter users helped set up a smart contract with the betting terms. Srinivasan also disclosed that he would move another $1 million in USDC for another wager on the same topic: 

“I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. See my next tweet. Everyone else should just go buy Bitcoin, as it’ll be much cheaper for you than locking one up for 90 days.“

Medlock and Srinivasan made the wager based on their different views of the U.S. economy’s future amid ongoing uncertainty regarding its banking system.

Srinivasan argues that there’s an impending crisis that will lead to the deflation of the U.S. dollar and, thus, to a hyperinflation scenario that would take the BTC price to $1 million. Medlock, on the other hand, is bearish about upcoming hyperinflation in the country.

Meanwhile, Bitcoin’s price has reached $27,387 at the time of writing, with its market capitalization adding over $194 billion year-to-date to a 66% growth in 2023, outperforming Wall Street bank stocks amid fears of a global banking crisis.

Also, for the first time in a year, BTC’s price has shifted away from United States stocks, rising about 65% compared to the S&P 500’s 2.5% gains and the Nasdaq’s 15% decline, Cointelegraph reported.

Spanish rehab center adds crypto trading addiction to services list

The rehabilitation center cited estimates that about 1% of cryptocurrency traders will develop an “extreme” addiction to crypto trading.

A luxury rehabilitation center in Spain has recently added services aimed at treating a relatively new kind of addiction — crypto trading.

The center, called “The Balance,” is a Switzerland-founded wellness center, with its main facility located on the Spanish island of Mallorca along with branches in London and Zurich.

While it has long treated addictions such as alcohol, drugs and behavioral health, it recently began offering services aimed at combatting crypto trading addiction, according to a report from the BBC.

The Feb. 5 report revealed that one of the center’s clients reached out so that he could “wean off crypto” after reportedly pouring in $200,000 worth of trades each week.

The treatment involves a four-week stay that involves therapy, massages and yoga. The bill can be upward of $75,000.

In another part of the world, Castle Craig Hospital — a Scottish-based addiction rehabilitation clinic treating high-adrenaline crypto traders since 2018 — has seen over 100 clients come in with “dangerous” cryptocurrency problems.

Castle Craig’s rehabilitation facility. Source: Castle Craig.

In Asia, Diamond Rehabilitation — a Thailand-based wellness center operating since 2019 — has also added services dedicated to cryptocurrency addiction rehab and treatment.

The organization said it approaches rehab through the use of Cognitive Behavioral Therapy (CBT), Motivational Interviewing (MI) and Psychodynamic Theory (PT), as part of its comprehensive, multi-stage approach to help traders overcome their addiction.

Related: How to control stress and depression in a crypto winter

It is believed that the euphoric highs and crushing lows of the fast-paced, 24/7 cryptocurrency trading arena have brought in real demand for rehabilitation centers to offer services for trading addicts.

An article by Family Addiction Specialist estimates based on gambling disorder statistics that about 1% cryptocurrency traders will develop a severe pathological addiction, while 10% will experience other problems beyond that of a financial loss.

The 24/7 nature of crypto trading has caused many to constantly check price charts. Source: Family Addiction Specialist.

Symptoms of this addiction, according to Family Addiction Specialist, include constantly checking the prices online — particularly in the middle of the night.