Balaji Srinivasan Calls Bitcoin Will Be The Protection Of Community Wealth, Here's Why!

Bitcoin as a hedge. (Doc; Photo. En Cryptomist)

JAKARTA - Former Coinbase CTO, Balaji Srinivasan, predicts that Bitcoin will be a savior when the US government begins to confiscate its citizens' assets due to swelling state debt and a growing fiscal deficit. Srinivasan stressed that Bitcoin, which is not bound under government control, can be a safe alternative for people who want to protect their property.

Srinivasan previously became known after he predicted his controversial prediction by stating that BTC would penetrate $1 million (Rp15,585 billion). According to him, a number of US states will experience a financial crisis due to inefficient fiscal spending. He assessed that uncontrolled spending could force the government to make quick decisions, including confiscating citizens' assets.

In the midst of conditions described by Srinivasan, Bitcoin can be an alternative to keeping Bitcoin's wealth safe. A concrete example of Bitcoin's potential as a driver of financial freedom was seen when Canadians turned to this crypto asset and began using it as an alternative fundraising method during the 2022 Freedom Convoy protests conducted by truck drivers.

From the fundraising, residents managed to collect 14 BTC and send it to truck drivers. Bitcoin donations were made after conventional donation methods were blocked. This shows Bitcoin's resistance to sensors and confiscations.

Although the predictions of Srinivasan's Bitcoin did not materialize, and until now Bitcoin has not reached a price of $1 million per coin. However, this crypto asset has set a new record of over $72,000 (Rp1,122 billion) per coin that has occurred recently.

Hyperinflation Influence On Crypto Assets

Reported by Cryptopotato, Srinivasan also criticized the policies of the US central bank, the Federal Reserve, for spending too much money. He claims the Fed's actions will lead to hyperinflation because there will be many failed banks and debts-burdened citizens. In this scenario, Bitcoin can offer solutions for those who want to secure their assets from the detrimental impact of inflation.

At the same time, Srinivasan believes that the Bitcoin maximalist movement, which is that those who spread the use of Bitcoin to the public, will gain momentum. Bitcoin maximists believe the first crypto asset, Bitcoin, is able to save individuals from financial crisis.