Former Coinbase exec cancels $1m bitcoin bet, donates $1.5m to charity

Former Coinbase Chief Executive Officer (CTO) Balaji Srinivasan canceled his $1 million bet on bitcoin (BTC) on May 2 after it failed to reach $1 million within 90 days.

Balaji gave $1.5 million to three organizations as part of the settlement, including a charity organization, GiveDirectly.

Balaji Srinivasan, the former CTO of Coinbase, has abandoned his wager that bitcoin will hit $1 million in the next 90 days. 

Balaji revealed on Twitter on May 2 that he had canceled the betting agreement on bitcoin pricing, saying:

“We can’t rely on the public sector anymore to tell us when something’s wrong.”

Additionally, he offered proof of three splits totaling $1,500,000 in compensation payments to Medlock, who had wagered against him, the Bitcoin Core development, and a charity called GiveDirectly.

Following the simultaneous bank failures of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank in March, Balaji predicted that the U.S. dollar would collapse and hyperinflation would cause bitcoin to soar to $1 million within 90 days.

James Medlock, a Twitter user on the losing end of the wager, was given $500,000 in USDC by Balaji when the wager was resolved on May 2.

The dollar may lose its position as the world’s reserve currency

At the time of publication, bitcoin was up only 10% since the wager was placed, trading at roughly $28,700. Many think the early bet closure was a foregone conclusion, and Balaji was effectively copping out of a poor prediction. 

But according to Balaji, the wager was already settled with a larger payout than necessary to convey the extent of the Federal Reserve’s money printing. Balaji emphasized that the Fed created $300 billion two days later to support his claim.

Balaji claims that nations are trying to reduce the influence of the U.S. dollar as soon as possible. The dollar may quickly lose its position as the world’s reserve currency, as co-founder of BitMEX Arthur Hayes noted last month.