Former a16z partner and Coinbase CTO Balaji Srinivasan has come under fire for an outlandish bitcoin price prediction, with renowned scholar and risk analyst Nassim Nicholas Taleb criticizing Srinivasan's bet as a "lunatic" move.
Srinivasan claimed on Twitter that he would bet $1 million that bitcoin would reach $1 million within 90 days, sparking heated debates and backlash from the cryptocurrency community.
Taleb took to Twitter to express his skepticism, stating that Srinivasan's trade is "trading against himself," something only "lunatics do under the influence."
Taleb, author of The Black Swan, The Bed of Procrustes, and Antifragile, is known for his expertise in risk analysis and probability, making his criticism particularly scathing.
He also highlighted that Srinivasan's bet could be exploited for arbitrage, inviting his followers to identify the optimal strategy.Other prominent voices have weighed in on the controversy, with trader and investor Roy Blackstone, director of special projects at MIT, comparing Srinivasan's prediction to John McAfee's infamous bet that he would eat his own manhood if bitcoin didn't reach $1 million by 2020.
Blackstone suggested that Srinivasan's prediction was merely a ploy to help his friends with their long positions.
Matt Levine, a financial journalist, also questioned the logic behind the outlandish prediction. He pointed out that if Srinivasan truly believed that the flagship cryptocurrency would be worth $1 million in 90 days, he should be buying 40 bitcoins instead of just one.
Levine further noted that many replies to his tweet suggested that Srinivasan was attempting to manipulate the market by executing a futures trade far above the current price.
Qiao Wang, a cryptocurrency analyst, provided a more measured response, stating that a world in which bitcoin reaches $1 million within three months would likely be accompanied by catastrophic events such as nuclear war, artificial general intelligence (AGI) escape, or the arrival of hostile extraterrestrial forces.
Wang argued that while bitcoin could realistically reach $1 million within 10-20 years, the short timeframe proposed by Srinivasan would not be favorable even if the odds were in his favor.