A $1 million Bitcoin (BTC) price bet was closed 97% below its target price, with its supporter Balaji Srinivasan instead opting to donate a total of $1.5 million to three different charities as a comparison .
On May 2, Srinivasan, the former chief technology officer at Coinbase, said the bet was “made by mutual consent” 45 days in advance.
To compensate, Srinivasan paid pseudonymous Twitter user and self-proclaimed “hyperinflation doubter” James Medlock $500,000, donated $500,000 to Bitcoin Core developers, and donated another $500,000 to nonprofit charity Give Directly.
“I settled the bet early and even donated more than I promised,” Srinivasan tweeted.
“I’m not in the habit of publicly burning a million dollars,” Srinivasan added, explaining the reason for closing the bet $970,000 below his target price of $1 million per bitcoin because he believes “in the common good that citizens can.” no longer “rely on the public purse […] to tell us when something is wrong.”
“I’ve spent my own money to send a proven, costly signal that something is wrong with the economy and that there won’t be a ‘soft landing’ as Powell promises – but something much worse.”
Despite giving away a total of $1.5 million, Srinivasan remains convinced that the American economy will eventually reach a state of hyperinflation. In his view, investors will rush to secure the value of their rapidly depreciating dollars in bitcoin, which will quickly increase the value of the asset to a price of $1 million.
The high-profile bet was launched on March 17 following a disagreement between Srinivasan and pseudonymous Twitter user James Medlock. Medlock initially tweeted that he would bet someone $1 million that the US dollar would not go into a state of hyperinflation.
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The terms of the bet stipulated that if the price of Bitcoin does not reach $1 million by June 17, Medlock will award $1 million in the dollar-pegged stablecoin USD Coin (USDC), plus an additional 1 BTC would receive. On the contrary, if the price of a single bitcoin was valued at $1 million on the same date, Balaji would be able to keep the 1 BTC and the $1 million in USDC.
Bitcoin is currently trading for just over $28,700 and has a market cap of $556 billion, according to Cointelegraph data.
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