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Will Bitcoin reach $1 million in 90 days?
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Will Bitcoin reach $1 million in 90 days?

The Bet on Bitcoin Reaching $1 Million in 90 Days

This section discusses the background of a bet made by entrepreneur and investor Balaji, who wagered one million dollars that Bitcoin will reach one million dollars in price in 90 days.

Background of the Bet

  • Balaji publicly wagered one million dollars that Bitcoin will reach one million dollars in price in 90 days.
  • The US government flooded the economy with 4.7 trillion additional dollars between March 2020 and May 2021 to ease financial hardship caused by the coronavirus pandemic.
  • Inflation is now out of control due to all these additional dollars entering the market, which has devalued the currency.
  • The FED has to raise interest rates to suck liquidity out of the market and bring inflation back down, but this causes banks to take unprecedented losses on their holdings as interest rates rise.

Risks for Banks and Depositors

This section discusses how banks are at risk due to their reserves losing value on the market while depositors are incentivized to withdraw their money from banks.

Risks for Banks

  • Banks' assets (bonds) have devalued as interest rates have risen, which means they may not be able to make their depositors whole again if all depositors want their money back at once.
  • Depositers are incentivized to withdraw their money from banks because US treasury bills are now paying close to five percent as opposed to keeping their money in banks where they're earning next-to-nothing.

The Bank Term Funding Program

This section discusses the bank term funding program introduced by the FED to help banks return money to their depositors.

The Bank Term Funding Program

  • The FED introduced the bank term funding program to lend money to banks that need it to return money to their depositors.
  • The amount of money made available through this program exceeds what was made available during the height of Corona and even during the 0809 global financial crisis.

Bitcoin to $1 Million

In this section, the speaker discusses how the Federal Reserve's printing of too much money has led to inflation and how people may seek refuge in Bitcoin due to its fixed supply.

Bitcoin as a Safe Haven

  • Bitcoin has a fixed maximum supply of 21 million that cannot be manipulated or corrupted.
  • People may seek refuge from fiat currencies being devalued by turning to Bitcoin.
  • The banking system is insolvent, and if more banks fail, it will underscore their shortcomings as safe keepers of people's money.

The Future of Bitcoin

  • If banks are bailed out with new money, it will debase the US currency and other currencies worldwide.
  • It is hard to predict when people will realize the inadequacies of the banking system and fiat money.
  • There is a strong case for Bitcoin in this environment, but it is unclear how much it will benefit compared to other stores of value like real estate or stocks.

Conclusion

  • While it is uncertain when or if Bitcoin will reach one million dollars, there is a reasonable case for adding it to investment portfolios.
Video description

-------------------------------------------------------------------------------------------------------- ► Learn, invest, prosper: https://linktr.ee/practicalislamicfinance -------------------------------------------------------------------------------------------------------- Thanks for watching our video: Will Bitcoin reach $1 million in 90 days? Entrepreneur Balaji Srinivasan bet $1 million that Bitcoin will reach $1 million within 90 days. This bold prediction is rooted in recent economic events. Between March 2020 and May 2021, the government injected $4.7 trillion into the market to ease pandemic-related financial hardships. Banks, unable to lend this money due to reduced consumer and business borrowing, purchased government bonds despite low-interest rates. By 2022, inflation skyrocketed, prompting the Fed to raise interest rates. Higher interest rates caused bond values to drop, and banks faced unprecedented losses. As a result, 186 banks became vulnerable to bank runs. Depositors, seeking higher returns, pulled money from banks to buy treasury bills, which now offered a 5% return. To counteract this, the Fed introduced the Bank Term Funding Program (BTFP), lending money to banks in need. This money, printed out of thin air, caused new money to enter the system again, increasing inflation. Srinivasan predicts that Bitcoin, a digital asset with a fixed supply, will benefit from this situation as people seek a reliable store of value. Bitcoin could gain from bank failures or bank bailouts that involve money printing, exposing the weakness of fiat currency. While Bitcoin may reach $1 million, the timeframe and purchasing power of the dollar at that point remain uncertain. -------------------------------------------------------------------- SUBSCRIBE IF YOU WANT TO BUILD HALAL WEALTH! ╔═╦╗╔╦╗╔═╦═╦╦╦╦╗╔═╗ ║╚╣║║║╚╣╚╣╔╣╔╣║╚╣═╣ ╠╗║╚╝║║╠╗║╚╣║║║║║═╣ ╚═╩══╩═╩═╩═╩╝╚╩═╩═╝ -------------------------------------------------------------------- CHECK OUT OUR OTHER VIDEOS ► Forex trading: Halal or Haram? https://youtu.be/Itnhu-Ja1t0 ►Day Trading: Halal or Haram? https://youtu.be/-oM3HG6893A ►Crypto Staking: Halal or Haram? https://youtu.be/NZh3fiyDotQ CONTACT US salam@practicalislamicfinance.com ABOUT OUR CHANNEL Our channel is about helping people invest to build wealth in a halal way. We cover topics such as halal crypto investing, halal stock investing, and halal product reviews. DISCLAIMER Anything you hear in this video is an opinion. It is not personalized financial advice. Make sure you do your own due diligence before making any investment decisions.