Tuesday, 30 May 2023

Crypto News

Hyperinflation and Bitcoin wagers, AI replacing first jobs and more

Hyperinflation and Bitcoin wagers, AI replacing first jobs and more

United States inflation and how it might affect the price of Bitcoin (BTC) are two of the top concerns on investors’ minds around the world. To illustrate, one prominent crypto personality bet big bucks on the future of the U.S. economy: the former Coinbase executive recently paid out $1.5 million to settle a Twitter wager about possible hyperinflation in the American economy.

The U.S. may not be experiencing hyperinflation, but the possibility of prices going out of control seems to concern the Federal Reserve. The Fed raised interest rates by a quarter-point on May 3 — to the highest level in 16 years — pushing the target range for its benchmark from 5% to 5.25%.

As inflation pressures continue, Bitcoin is still seen as a safe haven for many, with crypto firms weighing on the digital currency to fight back inflation and turmoil in mainstream finance.

This week’s Crypto Biz explores the latest wild wager on Bitcoin prices, inflation fears and the jobs that artificial intelligence may soon replace.

Balaji pays out his crazy $1 million Bitcoin bet, 97% under price target

A closely watched wager between former Coinbase chief technology officer Balaji Srinivasan and pseudonymous Twitter user James Medlock has been closed, with Srinivasan paying $1.5 million to settle. The wager commenced on March 17 when Medlock offered to bet anyone $1 million that the United States would not experience hyperinflation. A few hours later, the former Coinbase executive accepted the bet, claiming that an impending crisis would lead to the deflation of the U.S. dollar and, thus, to a hyperinflation scenario, taking the BTC price to $1 million. As part of the deal, Srinivasan paid Medlock $500,000, donated $500,000 to Bitcoin core developers and gave an additional $500,000 to the nonprofit charity, Give Directly.

MicroStrategy’s Bitcoin conviction ‘strong’ as it posts Q1 profit

The Bitcoin investment strategy is as strong as ever at business intelligence platform MicroStrategy after the company posted its first quarterly profit since 2020. The firm returned to the green with a profit of $94 million, primarily attributed to a one-time income tax benefit of $453.2 million. The firm further reduced its leverage by repaying a $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank. The quarterly results were also impacted by a revenue…

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