Balaji Srinivasan, former chief technology officer at Coinbase, believes that the government will turn against the money printers once more and devalue US dollars like never before.
Srinivasan tells his 895,200 Twitter followers that the US is in the midst of a “fiat crisis” as well as a financial crisis.
“Everything is bust. Banks, commercial real estate, blue states. There are rumblings about insurance. The printing will be historical in scale. As will the desire to exit the printing.”
If you look closely at the state the insurance industry, the Bitcoin bull (BTC), says that insurers are like banks. They hold government bonds that were devalued during the string of rate increases issued by Federal Reserve over the last year.
“On the topic of insurance… you know all those ‘safe’ assets that insurers hold to pay you back? Many of those assets are also Fed-devalued bonds.
Remember, insurers hold ‘safe’ assets like bonds and mortgages. How are these safe assets performing? What’s the point of safe assets in this era? Not so great, Bob.”
Looking at the former Coinbase executive’s chart, it appears that in 2019, bonds account for over 70% of US insurers’ portfolios.
Srinivasan says The lesson from crises is to not trust the government.
“This isn’t just a financial crisis. It’s a fiat crisis. All the bills are due. Only a handful of pieces are now visible to the public. But it’ll be obvious in retrospect: don’t trust the state.”
After making bold predictions about Bitcoin last month, the angel investor began to attract crypto traders’ attention. Srinivasan stated that Bitcoin could explode in 90 days, reaching $1 million in just three months. This is despite the collapse in the banking industry.
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