Balaji predicts that Bitcoin will save the world when the US government steals our money

The U.S. government could seize citizens' assets in the coming fiscal collapse — but bitcoin will save the day when it does, says former Coinbase CTO Balaji Srinivasan.

The tech entrepreneur and bitcoin bull, who lost $1.5 million on a huge bet on bitcoin prices last year, is once again raising fears of America's seismic national debt and fiscal deficit, forcing the state to take drastic measures to stay afloat. Solving.

Why is the government confiscating our property?

In a post on X on Sunday titled “Bitcoin > Budgeting,” Balaji highlighted the most inefficient fiscal spending in blue states like California and San Francisco. In the latter state, disproportionate spending that has now reached $10 billion+ per year has set the country up for “financial reckoning”.

“When we go there, everything is pulled into a black hole. It starts with inflation and ends with confiscation…anything that can be seized will be eaten.

The entrepreneur cited prominent examples of governments seizing private property, including the US government's freeze on $600 billion in Russian foreign reserves and the freeze on citizens' bank accounts in connection with the 2022 Freedom Convoy protests.

In the latest example, protesters successfully transferred more than 14 BTC to truck drivers after other donation methods were blocked, using bitcoin as an alternative source of fundraising. Because Bitcoin is untethered and peer-to-peer, its assets cannot be stolen unless someone else knows the investors' private keys.

“Every asset on the DC-controlled ledger could be subject to takedown, but Bitcoin holders *may* be untouched,” Balaji wrote.

That said, the state may resort to door-knocking to seize the most elusive property. If so, he believes that the “Bitcoin maximalism” movement will win many believers.

“At least it will be clear that budgeting is not going to save us,” he concluded. “Only Bitcoin Can”

Balaji's $1 Million Bitcoin Bet

Balaji predicted that bitcoin could reach $1 million per coin following the March 2023 banking crisis, which followed the Federal Reserve's bid to bail out depositors.

The event convinced the U.S. government that hyperinflation would lead to hyperinflation and that it would try to disenfranchise citizens burdened by student debt and credit card debt.

While Balaji missed that prediction prematurely, and it ultimately didn't come close to reality, BTC reached a new high of over $72,000 per coin nearly a year after making the bet.