Coinbase’s CTO, Balaji Srinivasan, was previously an a16z partner. Making such a prominent claim has generated a lot of debate.
To the dollar, if you bet that bitcoin’s value will reach $1 million in the following three months, you’ll get $1 million. Experts like Nassim Nicholas Taleb are speaking out against it.
Nassim Nicholas Taleb, a well-known academic and risk analyst, has referred to Srinivasan’s gamble as a “lunatic” act in his criticism of it.
The community surrounding cryptocurrencies reacted violently. Company responded angrily to Srinivasan’s comment on Twitter by announcing that it would bet $1 million.
A Single Bitcoin Will Soon Cost More than $1,000,000 USD
Within the next three months, the price of a single bitcoin will exceed one million dollars. The statement made by Srinivasan triggered intense debates and reactions from others.
On his Twitter account, Taleb expressed his shock and astonishment at the news. It asserts that Srinivasan engaged in “trading against himself” when he made his trades.
It is something that “lunatics undertake while under the influence of drugs or alcohol,” and it is a behavior that is associated with lunatics. Because Taleb is well-known for his expertise in evaluating risks and making probabilistic judgments.
The criticism of it is very severe. “The Bed of Procrustes,” “Antifragile,” and “The Black Swan” are some of the titles of his works that he has written. Everyone is aware that there is a possibility of arbitrage, and it has been brought to their attention.
It is possible that it is associated with Srinivasan’s wager. It is a challenge for his followers to decide what course of action to take. It is the wisest thing to do in the situation.
Among the other notable people who have spoken out about the disagreement is dealer and investor Roy Blackstone. He also happens to be the head of special projects at MIT.
Bitcoin Will Fail If It Doesn’t Reach $1 Million By 2020
It was comparing Srinivasan’s forecast to the infamous wager that John McAfee had made that he would eat his own genitalia. If bitcoin does not reach $1 million by 2020, then it will be considered a failure.
Blackstone expressed his apprehension that Srinivasan’s prognosis was nothing more than a carefully crafted ruse.
That is for the benefit of his close friends. This suspicion was expressed as follows: it was a result of the stretched positions they were in.
Another individual who questioned the logic behind the ludicrous prediction was Matt Levine, who is a writer who covers the financial business. It was brought to everyone’s attention that Srinivasan was truthful in his assessment.
In a period of ninety days, the value of the highlighted cryptocurrency would reach one million dollars.
This was one of the points that were brought up. It should be purchasing forty bitcoins instead of only one in order to reflect its true value.
Levine continued by saying that many individuals replied to his tweet by making assumptions based on what they read. By engaging in a futures trade, Srinivasan was seeking to manipulate the market in an unfair manner.
It was at a price that was noticeably greater than the amount that is currently being charged for it. An analyst for cryptocurrencies named Qiao Wang offered a comment that was rather more moderate.
It is predicted that the price of a bitcoin would hit $1 million during the next three months in this alternate reality. This could lead to cataclysmic events like AGI’s liberation, nuclear war, or alien invasion.
Wang made the point that even if the chances were in Srinivasan’s favor, this shouldn’t change the outcome. The small amount of time that he suggested would not work in our favor.
It remains the same even if the value of a bitcoin were to reach $1 million within the next 10 to 20 years.
Despite the reality that the price of a single bitcoin has the potential to reach a million dollars. This will still be true in the coming 10 to twenty years.
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