Balaji Srinivasan, the former technical chief of Coinbase, continued to reiterate his philosophy on Twitter after setting up a 90-day million-dollar bet on Bitcoin. He used history as an example to emphasize that the dominance of the global reserve currency is not endless. The recent The economic crisis will make the dollar no longer too big to fail. Binance founder Changpeng Zhao (CZ) also tweeted to quote the historical price of Bitcoin, indicating that Bitcoin has risen at least a hundred times every four years.
Balaji Srinivasan: The dollar is no longer too big to fail
Balaji noted that in the short term, investors tend to pile into dollar-denominated assets during times of stress.
But from a longer-term historical perspective, this is not the case. The public no longer holds a currency that continues to depreciate. He believes that this is the main difference between the recent economic crisis and 2008. The dollar is no longer too big to fail.
And he hopes that the rising currency after the US dollar will be Bitcoin, not RMB.
"History…tells us investors tend to flock into dollar-denominated assets during times of stress"
No, take a longer historical lens.
People exit devaluing currencies.
That's the key difference vs 2008.
USD is no longer too big to fail.
Hope what comes next is BTC, and not RMB. https://t.co/ZOT2wOJceq pic.twitter.com/dKtPFoz5i2
— Balaji (@balajis)March 25, 2023
Balaji quoted Bridgewater Fund founder Ray Dalio's definition of historical reserve currency. Whether it is the Dutch guilder in the 17th century or the British pound in the 19th century, the key is that the dominant position of the reserve currency will not last forever.
Ray Dalio commented on the general manager : Silicon Valley Bank is a "canary in the coal mine", and interest rate cuts may happen within a year
Balaji emphasized with four points that after the 2008 financial tsunami, the script of macroeconomic return to normal will not repeat itself:
The Fed can no longer survive the crisis by printing money, inflation is already too high. There are two alternatives to the dollar: Chinese Yuan and Bitcoin.
Banks faced consumer-level failures (bank runs) in 2003 rather than corporate-level failures in 2008.
The geopolitical situation has changed rapidly, and the renminbi has become an alternative to the depreciating dollar.
Significant developments since 2008: Cryptocurrency technology and Bitcoin.
Changpeng Zhao (CZ) hinted again: Bitcoin rises a hundred times every four years
CZ claims to only hold BTC and BNB for a long time, and he likes to shout up these two mainstream currencies on Twitter from time to time. Of course, he will say that these are not financial advice.
He tweeted on March 25 that Bitcoin’s price changes every four years (approximately in January of the next year after halving):
CZ emphasized that historical prices show that the price of Bitcoin will always increase by two zeros every four years, an increase of more than a hundred times.
Historically, #bitcoin 's price increased by 2 digits (100x) every 4 years, so far.
Disclaimer: History does not predict the future. Not a prediction. Not financial advice. https://t.co/YohEqDtoWN
— CZ 🔶 Binance (@cz_binance) March 25, 2023
CZ also mentioned that in fact, BNB and ETH have increased more than BTC, but the market value is still lower than BTC.
And Balaji previously made a bet with the community on Twitter, he believes that Bitcoin will reach $1 million within 90 days:
Therefore, it is not too surprising that Balaji has recently released the argument that he is pessimistic about the overall economy.