Developer Pays $ 1.5 Million in Bitcoin Value Dispute

Former Coinbase CTO Balaji Srinivasan has admitted his loss in a dispute over the rising value of bitcoin. Srinivasan paid $ 1.5 million for his mistake.

At the end of March, the former Coinbase CEO bet with political commentator James Medlock that bitcoin would rise to $ 1 million by June 17, 2023. However, on May 2, 45 days before the deadline, Balaji accepted his defeat. However, instead of paying 1 million USD Coin (USDC) stablecoins to James, as previously agreed, Srinivasan:

• $ 500,000 to the Bitcoin Core developers;
• $ 500,000 to the Give Directly charity organization;
• $ 500,000 to James Medlock.

Despite the obvious loss, Srinivasan continues to insist on his point of view that the BTC rate will reach $ 1 million in the future. In his opinion, people will start actively investing in cryptocurrencies after the inevitable collapse of the US economy, which will cause hyperinflation.

The scenario in which BTC completely replaces the US dollar does not look too realistic at the moment. However, there are clear signs that the US dollar is weakening against other currencies. The US dollar index has declined by 8.9% over the past 6 months and lost 1.34% of its value over the past year.