Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Balaji Srinivasan Says FTX Previews Sovereign Failure, USD Bank Accounts Could Be Frozen Or Inflated To Worthlessness – Finance Bitcoin News
Angel investor Balaji Srinivasan says the collapse of crypto exchange FTX should be treated as “a preview of state failure.” He warned that bank accounts in US dollars could one day “be frozen or inflated to worthlessness”, stressing that the authorities “will not show interest in prosecution”. Srinivasan warned: “That world is coming and we need alternatives.”
Balaji Srinivasan on FTX, State Failure and US Dollars Becoming Worthless
Angel investor Balaji Srinivasan commented on the collapse of crypto exchange FTX in a series of tweets on Saturday. Former CTO of crypto exchange Coinbase and a general partner at venture capital firm Andreessen Horowitz (a16z), Srinivasan is also the author of The Network State, a WSJ bestseller.
“Treat FTX as a preview of condition failure,” he wrote, adding:
One day your USD bank account balance may be frozen or inflated to worthlessness. The authorities will show no interest in prosecuting – they are the ones who ordered it in the first place. That world is coming and we need alternatives.
“It’s all just a dress rehearsal for the ultimate rug move – when the government prints trillions, monetizes the debt and ends fiat,” the angel investor explained in another tweet. “Our place will be prepared. We know what that looks like. And our trust-minimizing systems will be life rafts for the world.”
Many on Twitter agreed with Srinivasan, saying bitcoin and decentralization are the answer.
However, some disagreed, telling the founder that FTX is a scam and a Ponzi scheme. “It is not a preview of government failure. It has nothing to do with it. It is simply fraud,” wrote one. “How can you equate a 32 year old fraudster who had no control, structure, systems or governance with the US government?” asked another. A third opined: “Comparing regulated banking to unregulated crypto exchange is misleading.”
Srinivasan also commented on bitcoin as a hedge against inflation in another tweet on Saturday. The angel investor elaborated:
It is a safeguard against hyperinflation, currency depreciation, bank freezes and asset seizures. It has already shown itself in that role, in places like Venezuela, Lebanon, Nigeria. For “standard” inflation, it may eventually have a gold-like role, but it takes decades to show.
Do you agree with Balaji Srinivasan about FTX and bitcoin? Let us know in the comments section below.
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