🎰 The $1 Million Bitcoin Bet
Former Coinbase CTO thinks BTC will go to $1m, the White House releases a report on Bitcoin, and could BTC follow gold’s explosive growth during the 1970ies?
Welcome to This Week In Bitcoin here on Substack! This newsletter is curated and written by the team at Relai, the best place to buy bitcoin instantly.
By the way: This weekly newsletter is also available in German; you can sign up here.
Hey everyone,
Amidst a banking crisis and the looming threat of hyperinflation, Bitcoin remains at the center of attention. This week, we delve into some crazy developments, as always. From Balaji Srinivasan's bold $1 million Bitcoin bet to the White House's recent economic report on Bitcoin, which neglects some of the asset's key benefits. Additionally, we explore the possibility of bitcoin’s price following in the footsteps of gold's explosive rally in the 1970s as investors look for a hedge against inflation and financial turmoil.
By the way: This weekly newsletter is also available in German; you can sign up here.
Quote of the Week:
“Bitcoin was designed in reaction to Lehman Brothers in the 2008 crisis. It was designed because you can't trust central authorities. And it's designed because it's clear that central authorities will fail. It's not a question of if. It's more a question of when.”
🎰 The $1 Million Bitcoin Bet
Those of you who have been around during the 2017 bull run might remember John McAfee’s legendary bet: The Antivirus pioneer famously declared in July 2017 that he would eat his penis on national TV if bitcoin wouldn’t hit $500k in three years. He later even doubled down on a $1m prediction. As we all know, bitcoin didn’t hit any of those prices. Nearly 6 years later, we have another crazy bet: The former Coinbase CTO Balaji Srinivasan predicted that one Bitcoin would be worth over $1 million within 90 days due to an impending financial crisis and hyperinflation. While many Bitcoiners share Balai’s belief that bitcoin can be a safe haven asset, many remain skeptical about Balaji's short timeframe prediction. Critics argue that Balaji might overestimate banks' losses on bonds and underestimate their resilience. Even ‘Bitcoin Standard’ author and economist Saifedean Ammous voiced his concerns regarding Balaji’s bet.
My take: It’s doubtful that Balaji will win his bet, which is not his intention anyway. It’s still interesting to see playing out, as it serves as a reminder that the current financial system is fragile and Bitcoin is an emerging alternative.
🇺🇸 White House Releases Economic Report On Bitcoin
2023 is the year of rampant inflation, a banking crisis on the verge of spiraling out of control into a financial crisis, and a general loss of trust in politicians, central banks, and institutions. But it’s also the year when those said players couldn’t stop talking about an asset that—according to them—was for sure heading to 0 before it fades into obscurity. Well, up until recently, at least. Because now Bitcoin (and cryptocurrencies) seem quite high on the agenda. The White House Economic Report includes a section on digital assets, particularly Bitcoin, which the report argues has limited ability to perform the functions of money and lacks fundamental value. Neglecting the potential benefits of Bitcoin, including its ability to serve as a store of value and as an effective alternative to fiat currency, the report also misunderstands some fundamentals of Bitcoin, such as its decentralized nature and inability to switch to proof-of-stake. The report was accompanied by another regulatory bomb: Coinbase was warned by the SEC of potential securities charges.
My take: The White House Economic Report's negative tone towards Bitcoin is not surprising, given the long-standing skepticism of the Biden administration. While challenges may continue to arise, it's important to remember that Bitcoin can’t be easily stopped—even by someone as powerful as the U.S. government.
🥇 Is Bitcoin following gold’s explosive rally of the 1970ies?
Bitcoin's price trajectory might mirror a 1970s gold fractal, during which gold experienced a more than 700% rally as the US faced soaring inflation. Similarities between the two assets are evident, with both rallying amid recent bank runs and failures. Gold has increased by around 10% this year, while Bitcoin has achieved a near 70% return. If the gold fractal continues to unfold, Bitcoin's value could surge, reaching over $132,000 per coin. This would position Bitcoin as a digital equivalent to gold in the 1970s, helping investors combat inflation or a banking crisis. Billionaire investor Paul Tudor Jones has previously likened Bitcoin to gold in the 1970s, further supporting the idea that the cryptocurrency could hedge against inflation or financial turmoil.
My take: It’s important to remember that past performance does not guarantee future performance. While Bitcoin’s price charts may look similar to gold in specific timeframes, it’s not a sure thing that it will remain this way.
Short news:
Ledger CEO: The collapse of banks is a ‘crash course to Bitcoin’
Bitcoin’s banking crisis surge will ‘attract more institutions’: ARK’s Cathie Wood
Highlights from Relai:
12 Inspiring Hal Finney Quotes
Hal Finney was one of the most influential people in the early days of Bitcoin. He was a cryptographer who developed the theoretical precursor to cryptocurrency, Reusable Proof of Work (RPOW).
In this blog post, we explore 12 top quotes, showcasing his thoughts on Bitcoin and its future.
Disclaimer: None of this content constitutes investment advice. Always conduct your own research before investing in any digital asset.
Thank you for reading once again; we hope you enjoyed this news.
See you next week!
Your Relai Team
P.S. It would be amazing if you could leave a positive review in the Google Play Store or Apple App Store. Also, consider recommending Relai to your friends; we even have a referral program where you can earn some extra sats!