Crypto investor and tech entrepreneur Balaji Srinivasan, former Coinbase CEO, lost $1 million in a bet on U.S. inflation.
The bet's winner, the pseudonymous Twitter account @jdcmedlock, plans to use a portion of the winnings to fund the construction of a cat house for neighborhood feral cats, Quartz reports.
Srinivasan had wagered in March that Bitcoin would reach $1 million within 90 days due to U.S. hyperinflation. However, with the Federal Reserve taking measures to tame prices, hyperinflation remains a distant prospect, making @jdcmedlock the winner.
The wager drew widespread attention, with experts like "Black Swan" author Nassim Nicholas Taleb ridiculing Srinivasan's prediction.
Mike Novogratz, founder of Galaxy Digital, expressed concern about the potential consequences of Bitcoin reaching a $1 million valuation, as it could lead to chaos and destruction.Despite the bet's outcome, both Srinivasan and @jdcmedlock have put the winnings to good use. Srinivasan donated an additional $500,000 to Bitcoin core developers, while Medlock contributed $500,000 to GiveDirectly, an anti-poverty charity.
After paying taxes and settling some debts, Medlock will focus on building the cat house and investing in low-fee index funds. The winner views those index funds as a much better alternative to Bitcoin.
The bet has ignited discussions on the future of Bitcoin and the risks associated with bold predictions. Some pundits emphasize the importance of cautious investing and the need for the crypto industry to prioritize legitimacy.