Bitcoin Defies Government Control

Former Coinbase CTO Balaji Srinivasan spoke at the Network State Conference in Singapore on Sept. 22 about Bitcoin’s potential to protect wealth against inflation.
Srinivasan
claimed
that Bitcoin (
BTC
) serves as a shield against what he describes as the gradual erosion of wealth by the state through inflation.
Srinivasan compared the
U.S. Federal Reserve’s
approach to inflation with a slow process of wealth loss over time. In the current financial system, inflation is often seen as normal. The Fed targets around 2% inflation per year, meaning that the money people hold gradually loses its value.
In March 2023, Srinivasan entered a social media argument where he
placed
a $2 million bet that Bitcoin would reach $1 million by June 17, 2023.
The wager, initiated by Twitter user James Medlock, proposed that Srinivasan would win $1 million in USDC and keep 1 BTC if his prediction was correct, while Medlock would win $1 million in USDC if it wasn’t.
Srinivasan is an entrepreneur, investor, and former Chief Technology Officer of
Coinbase
, a leading cryptocurrency exchange. Before joining Coinbase, he
co-founded
several successful tech companies, including Counsy and Earn.com. Srinivasan is also known for his involvement as a general partner at Andreessen Horowitz.
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Bitcoin financial parallels
In his statements, Srinivasan also drew parallels between the financial and medical systems. Srinivasan suggested that, just as
inflation
is seen as an inevitable part of the economy, the healthcare system treats aging as something that should be managed in small steps.
He criticized this mindset, arguing that just as people accept losing a little bit of money each year, they’re also expected to accept losing a bit of their health each year.
Bitcoin, according to Srinivasan, offers an alternative to this approach.
Unlike traditional currencies, Bitcoin has a fixed supply, meaning it isn’t controlled by governments or banks. This setup makes it more resistant to inflation, offering a potential way for people to preserve their wealth over time.
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