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Former venture capitalist, Balaji bet James Medlock a million dollars that Bitcoin would reach a million dollars a coin in 90 days. This took place on March 17, when Bitcoin was worth around $26k a coin. Bitcoin is currently trading at around $28k a coin. Now, I am an investor in Bitcoin as I believe that it has characteristics that make it valuable, but when I saw Balaji predicting a million dollars a coin in 90 days, I thought that that was crazy.
I made a video on this for our finance show which I will link below, but I wanted to make an article on this as well.
In order for Bitcoin to reach a million dollars a coin, Bitcoin itself would have a market cap of over 20 trillion dollars. It would be worth double Gold's market cap. It would be worth half of the entire U.S. stock market. Now, I do believe in Bitcoin, and I do think it's possible for Bitcoin to reach a million a coin one day. Do I think this will happen in the next 90 days though? Absolutely not.
Balaji's theory is that the U.S. is going to experience hyperinflation. One of the characteristics of Bitcoin that make it so appealing is the fact that it is not able to be inflated. There are 21 million Bitcoins in existence, and there is no one that can create more Bitcoins. There will only ever be 21 million coins. If the U.S. dollar does experience hyperinflation, it would make sense that people would start investing in Bitcoin. That's Balaji's theory.
I don't necessarily believe that the U.S. is going to experience hyperinflation, but even if it does, I don't think Bitcoin will be able to reach a million dollars in 90 days. There is a learning curve that comes with Bitcoin. People need to know how to buy it, store it, and not lose it. I think that that will take longer than 90 days.
If you want to buy Bitcoin, consider doing it through Coinbase. One can download Coinbase and receive $10 in free crypto by doing it through our finance tool page.
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