👀 The $2M crypto bet everybody is watching

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GM everyone. This is 2036, the crypto newsletter that pays you 💸

There’s one story that everyone in crypto is talking about right now.

Balaji Srinivasan - one of the most respected voices in crypto - is betting $2 million that bitcoin will reach $1 million within 90 days.

What does he know that we don’t? And is he right?

Let’s have a look.

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In case you’re new to 2036 - Balaji Srinivasan:

• sold his genetics testing company for $300M

• is the former CTO of Coinbase

• is a former general partner at a16z, the most prestigious venture capital firm in the world

• famously predicted how COVID would play out (lockdowns, nationalism, etc.)

i.e. when Balaji speaks, people tend to listen. He is neither a stuntman nor a prepper who cries wolf every other day.

Yet last week, he bet $2M that bitcoin would be worth $1M within 90 days.

Most people are calling him a total lunatic.

But Balaji was called ‘Einstein if he had the Internet’ by Marc Andreessen, the billionaire co-founder of the first web browser.

He’s a smart cookie.

So here’s his rationale:

1/ Banks are collapsing faster than a house of cards

Hundreds of US banks are insolvent. They carry over $600 billion of unrealized losses on their balance sheets.

They are no longer safe custodians of our money.

In 2008, bankers lied about how safe mortgages were.

In 2023, they're lying again - but this time to depositors: there isn’t enough money in the banks to cover withdrawals.

That’s because banks used customer deposits to buy bonds that have now collapsed in value.

The Federal Reserve realized this last year already but said nothing. So they let banks hide their insolvencies deep in the footnotes of their annual reports.

But people eventually found out - and panicked.

Silicon Valley Bank saw $42 billion of withdrawals in 24 hours.

Credit Suisse faced $100 billion of withdrawals in October alone and last week - over $10 billion a day.

There are hundreds more banks like these.

2/ To save the banks, the Fed is printing trillions of dollars

The Federal Reserve saved the depositors at Silicon Valley Bank.

But to keep all US depositors safe - the Federal Reserve could end up printing $18 trillion.

The Fed has also set up backdoor deals with European, Canadian, Japanese, Swiss and British banks to make sure they don’t dump their US bonds on the market.

This means even more money printing.

3/ All this money printing will lead to hyperinflation - and it will come much faster than you think

During hyperinflation, the enormous new supply of money collapses the value of the currency. Goods and services skyrocket in prices.

Here’s a list of 56 times it’s happened in the past - and how fast it all went.

We’re talking days or hours in some instances.

4/ The safest asset to own is bitcoin

Bitcoin is a bank that can't lend out, invest, gamble, dilute, debase, freeze, or seize your assets.

It works all the time, everywhere in the world, and is unstoppable.

It is not a money-making but a money-saving technology.

It’s the safest asset to own in times like these. And when people lose trust in collapsing banks, they’ll turn to bitcoin.

At least, that’s what Balaji is betting will happen. His message is: buy bitcoin, and get your coins off exchanges.

We don’t know which way the tide will turn. Bitcoin is up 30% in the last 10 days. We’re watching the bet very closely.

💎 We wrote a report on the top buys, sells and holdings of crypto wallets worth between $1.5 and $32 million. Refer 1 friend using this link and we’ll send over the report.

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