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Balaji Deposits Money for His $1M Bitcoin Bet


thecryptobasic.com 25 March 2023 10:23, UTC
Reading time: ~3 m

The latest move underscores Balaji’s commitment to the wager.

Balaji Srinivasan, an American entrepreneur, and former CTO at Coinbase, have deposited $2 million worth of USDC for his bet that Bitcoin (BTC) will hit a price of $1 million by June. This daring action is a testament to his commitment and confidence in the wager’s outcome.

Balaji disclosed the development in a tweet today, sharing transaction proofs of the transfers.

As I mentioned to Medlock, I moved $2M into USDC days ago and it's ready to go[1].

Right now, we're making sure it's set up as a Simon-Erlich style public interest bet where it's clear that there's zero profit motive.

[1]: https://t.co/cLy2hEFsIc https://t.co/mKpak2KBCU pic.twitter.com/vh4k0nKFHh

— Balaji (@balajis) March 25, 2023

On-chain data reveals that a dedicated Ethereum address was activated for the purpose of the bet, specifically tagged “Balaji’s Bet.” Notably, the address received a series of six transfers from a Coinbase wallet totaling $2,000,725 ($2M). All the transfers occurred last Saturday, barely a day after Balaji made a bet.

Balaji further insisted that the bet will be staged as a Simon-Ehrlich-style public interest bet in which neither party involved has any motive to profit from it.

A Simon-Ehrlich style public interest bet is a wager made between two individuals about a specific social or economic issue that has significant public interest. The bet is typically designed to bring attention to the issue and spark public debate, as well as to hold the participants accountable for their predictions.

What Triggered the Bet?

James Medlock, a renowned yet pseudonymous Twitter personality, disclosed last Friday that he is willing to bet $1 million with anyone that the United States will not reach hyperinflation. It bears mentioning that the U.S. inflation rate recently cooled to 6.0 in February, marking the eighth consecutive decline since the peak of 9.1 last June.

Despite this, Balaji believes Medlock’s false claims and that the U.S. economy will hit hyperinflation. As a result, he decided to take Medlock up on the bet. Notably, Balaji asserted that the dollar would decline against BTC to the extent that the asset would be worth $1 million in the next 90 days.

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

He noted that he would deposit $1 million on-chain for the bet, and Medlock should buy 1 BTC. If BTC reaches $1 million within the set time frame, he gets to keep Medlock’s 1 BTC and the $1 million deposited. However, if BTC does not hit the price target in 90 days, Medlock gets the $1 million and keeps the 1 BTC.

Balaji said he would deposit $2 million to have the bet with Medlock and any other person. He further disclosed that they could either create a smart contract to automatically execute the bet upon appropriate conditions or use a trusted custodian.

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