Srinivasan's Balaji Unloads The Cause Of The US Banking Crisis And The Reason Is Bitcoin Bet

Balaji Srinivasan revealed the banking crisis problem in the US. (Photo; Doc. TechCrunch)

JAKARTA The controversial figure who made the Bitcoin bet, Balaji Srinivasan recently discussed the ongoing banking crisis. At the same time, he also announced that he had issued funds to bet on Bitcoin worth US$1 million (equivalent to Rp14.7 billion according to today's exchange rate) on May 2 yesterday.

According to Balaji, the US government scored trillions of dollars that could result in a financial crisis. Through a video posted on Twitter, Srinivasan said:

"I've set a million dollars on fire to tell you that they're printing trillions of dollars... I want to tell you in real life that something is wrong with the economy and the country doesn't tell you that. And things can end very quickly."

Srinivasan highlighted various ongoing financial crises, including government debt limits, the latest bank failures, property crises, and bond crises. He also mentioned that the US government scored US$300 billion (Rp4.4 quadrillion) just days after the Silicon Valley Bank (SVB) failure.

The funds are aimed at saving other banks from the risk of collapse triggered by SVB. He also mentioned that the banking system suffered an inextinuable loss of US$2.2 trillion (equivalent to Rp32.2 quadrillion) in the past year, based on data from Stanford University.

Srinivasan also highlighted trillions of dollars in pension funds, car loans, student loans, and credit cards. In addition, he also highlighted international affairs by commenting on aid worth US$75 billion (Rp1.1 quadrillion) sent by the US to Ukraine and energy subsidies worth US$700 billion (Rp10.3 quadrillion) in Europe.

He also warned that a fiat crisis could occur suddenly. Srinivasan argues that the Federal Reserve policy could result in a "rash landing" - contrary to Federal Reserve Chairman Jerome Powell's promise of "soft landing" and inflation which will gradually diminish.

Srinivasan also reiterated earlier claims that there is a 10 percent chance that a fiat crisis will occur in the next few months and it is likely 70 percent that the crisis will occur in the next few years.

Srinivasan bet $1.5 million on the blockchain chain. He said that this concern justifies the previous stakes. At the end of March, Srinivasan said that he would bet $1 million that the price of Bitcoin would reach $1 million per coin in 90 days.

On May 2, he said he had committed to the bet with three Bitcoin on-chain transactions. He spent a total of 1.5 million US dollars (Rp22 billion) in Bitcoin, with $ 500,000 (Rp7.3 billion) for Bitcoin Core development via Chaincode and US $ 500,000 for Give Directly. He also sent $ 500,000 to Twitter user named James Medlock, Balaji's starting bet opponent.