Inflation in the US and its effect on the price of Bitcoin (BTC) are two of the biggest concerns for investors around the world. For example, one of her prominent cryptocurrency personalities is betting big on the future of the US economy. A former Coinbase executive recently paid him $1.5 million to settle his Twitter bet about the possibility of hyperinflation in the US economy.
The U.S. may not be experiencing hyperinflation, but the potential for price runaways appears to be worrying the Federal Reserve. The Fed raised interest rates by a quarter of a percentage point on May 3, to a 16-year high, pushing the benchmark target range from 5% to 5.25%.
With inflationary pressures continuing, Bitcoin is still seen as a safe haven by many, with crypto companies relying heavily on digital currencies to combat inflation and mainstream financial turmoil.
This week’s Crypto Biz explores the latest wild bets on Bitcoin prices, inflation concerns and jobs that artificial intelligence may soon replace.
Balaji Pays Crazy $1 Million Bitcoin Bet, Falling 97% Below Price Target
A high-profile bet between former Coinbase Chief Technology Officer Balaji Srinivasan and pseudonymous Twitter user James Medlock has ended, with Srinivasan paying $1.5 million in a settlement. The bet began on March 17, when Medlock suggested he bet $1 million that the US would not experience hyperinflation. A few hours later, a former Coinbase executive accepted a bet, claiming that an imminent crisis would lead to a deflationary US dollar, leading to a hyperinflationary scenario and BTC price to $1 million. As part of the deal, Srinivasan paid his Medlock his $500,000, donated $500,000 to Bitcoin core developers, and he donated $500,000 to the non-profit charity Give Directly.
MicroStrategy’s Bitcoin Confidence Is ‘Strong’ After Posting First Quarter Profit
Bitcoin investment strategy at business intelligence platform MicroStrategy remains strong after posting its first quarterly profit since 2020. The company returned to the green with a profit of $94 million, largely due to his $453.2 one-time income tax benefit. a million. The company further reduced its leverage by paying off his $161 million Bitcoin-backed loan from the now-defunct Silverage Bank. The quarter’s results were also impacted by his 2.2% increase in revenue from last year to $121.9 million. MicroStrategy CEO Phong Lee said the company will continue to execute on his dual strategy of growing business intelligence software and acquiring Bitcoin. The company believes that the Bitcoin theory is “a pretty good way to outperform the market.”
Coinbase shares to be ‘weighted’ until US rules clear: Citi
Citi analysts say Coinbase’s stock will continue to be “under pressure” until regulators establish legal “traffic rules” in the United States. The bank downgraded the stock of the cryptocurrency exchange from “buy” to “neutral” and lowered its price target, citing “too many unknowns” as the company battled with regulators. However, bearish sentiment on Coinbase’s stock has not stopped investment firm ARK Invest from increasing its exposure to cryptocurrency exchanges. ARK said on May 1st he purchased 168,869 shares of Coinbase stock in an exchange-traded fund. This equates him to nearly $8.5 million. In April, ARK acquired 304,300 shares worth $17.5 million. Previously, the company bought 2.4 million shares in March for about $117 million.
Citi’s analysis was published ahead of Coinbase’s first quarter earnings report on May 4.
IBM’s 7,800 jobs could be replaced by AI within years, CEO suggests
IBM instead expects to “pause” hiring for “back-office” roles that could be automated by artificial intelligence. Back-office positions such as accounting departments are likely to be the first jobs to be automated by AI, he said. About 30% of these positions will be “easily” replaced by AI within five years, Krishna claimed in an interview. IBM employs her 282,000 employees worldwide, according to LinkedIn data. There are approximately 26,000 non-customer-facing staff.
Before You Go: The Average Man’s Wealth Is ‘Completely Destroyed by Inflation’, Says Arthur Hayes
According to Arthur Hayes, co-founder and former CEO of crypto derivatives exchange BitMEX, the majority of people will slowly eat away at their wealth by devaluing their money. He believes the world’s largest economy will be forced to inflate the massive public debt accumulated over the past few years through money printing. With long-term inflation on the horizon, Hayes’ investment paper focuses on preserving wealth through investing in digital assets. You can watch his exclusive interview with Cointelegraph on his YouTube channel.
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