• Former Coinbase CTO Balaji Srinivasan clarified that there is a high chance of sovereign defaults happening in the near future.
• He suggested this could lead to an unprecedented financial crisis and cause Bitcoin’s value to skyrocket to $1M.
• His comment was misinterpreted by some in the crypto community who thought he was backtracking on his prediction.
Sovereign Default Risk
Former Coinbase CTO Balaji Srinivasan said during Consensus 2023 that sovereign defaults are only a matter of time due to governments printing trillions which could lead to an unprecedented financial crisis. He noted that this is the reasoning behind his prediction of Bitcoin reaching $1 million after 90 days.
Some members of the crypto community misinterpreted Srinivasan’s statement, thinking he was backtracking on his earlier prediction. However, he quickly clarified that this wasn’t the case and that it may take more than 90 days for him to be proven right or wrong about his prediction.
Srinivasan believes that if sovereign defaults do happen soon, then it will have massive consequences for both fiat currencies and cryptocurrencies alike. He noted that such a development could cause Bitcoin’s price to skyrocket as investors look for safe-haven assets in times of economic uncertainty and volatility.
The former Coinbase CTO also predicted long-term implications of sovereign defaults and how they might affect global economies and markets over the years ahead. He believes that if governments continue their current path of reckless money printing, then it could lead to currency devaluation, hyperinflation, and other economic woes down the line.
In conclusion, Srinivasan believes there is a high probability of sovereign defaults happening soon which would have far-reaching implications for all kinds of assets including cryptocurrencies like Bitcoin. He emphasized that investors should be prepared for such an event by diversifying their portfolio with safe-haven assets like gold or even digital currencies like BTC or ETH in order to protect themselves against any potential losses brought about by market volatility or economic uncertainty caused by fiat crises.