Fun

Balaji Srinivasan Says FTX Is a Preview of State Failure, USD Bank Accounts Could Be Frozen or Inflated to Worthlessness

News Feed - 2022-12-12 11:12:58

Balaji Srinivasan Says FTX Is a Preview of State Failure, USD Bank Accounts Could Be Frozen or Inflated to Worthlessness


Angel investor Balaji Srinivasan says the collapse of crypto exchange FTX should be treated as “a preview of state failure.” He warned that one day U.S. dollar bank accounts “may be frozen or inflated to worthlessness,” emphasizing that the authorities “will show no interest in prosecuting.” Srinivasan cautioned: “That world is coming and we need alternatives.” Balaji Srinivasan on FTX, State Failure, and U.S. Dollars Becoming Worthless


Angel investor Balaji Srinivasan commented on the collapse of crypto exchange FTX in a series of tweets Saturday. Formerly the 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 state 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’re 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 pull — when the state prints trillions, monetizes the debt, and ends the fiat century,” the angel investor explained in another tweet. “Our space will be prepared. We know what that looks like. And our trust-minimizing systems will be life rafts for the world.”


Many people on Twitter agreed with Srinivasan, stating that bitcoin and decentralization are the answer.


However, some disagreed, telling the entrepreneur that FTX is a fraud and a Ponzi scheme. “It’s not a preview of state failure. It has nothing to do with that. It’s simply fraud,” one wrote. “How can you equate a 32-year-old con man who had no controls, structure, systems, or board to the U.S. government?” another questioned. A third opined: “Comparing regulated banking industry to unregulated crypto exchange is misleading.”


Srinivasan also commented on bitcoin as a hedge against inflation in another tweet on Saturday. The angel investor detailed: It’s a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure. It’s already proven itself in that role, in places like Venezuela, Lebanon, Nigeria. For ‘standard’ inflation it may eventually have a gold-like role, but that takes decades to show. Tags in this story Balaji Srinivasan, Balaji Srinivasan bitcoin, Balaji Srinivasan decentralization, Balaji Srinivasan FTX, Balaji Srinivasan inflated, Balaji Srinivasan state failure, Balaji Srinivasan US dollar, Balaji Srinivasan US government, Balaji Srinivasan USD bank accounts, Balaji Srinivasan USD worthless


Do you agree with Balaji Srinivasan about FTX and bitcoin? Let us know in the comments section below. 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 between economics and cryptography. Elon Musk: Recession Will Be Greatly Amplified if the Fed Raises Rates Next Week ECONOMICS | 1 day ago Robert Kiyosaki Expects Bitcoin Investors to Get Richer When Fed Pivots, Prints Trillions of Dollars ECONOMICS | 1 day ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRock Legend Gene Simmons Is Holding Crypto Despite Market Sell-Offs and FTX Collapse Next articleResearch Shows Centralized Exchanges Saw the Most Visits This Year From Americans, Koreans, Russians Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards


Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

Zhiyuan Sun8 hours agoTrader swaps 131K stablecoins for $0 during USDR depegAn attempt to withdraw USDR stablecoins amid a liquidity crunch appears to have gone horribly wrong.2153 Total views33 Total sharesListen to art
Prashant Jha11 hours agoTether signs MoU with Georgia to develop Bitcoin P2P infrastructureThe collaboration intends to bring changes to public administration and the business sector.1343 Total views2 Total sharesListen
Brian Quarmby7 hours agoStars Arena secures funds to plug $3M exploit, set to reopen after security auditStars Arena was hacked for roughly $3 million worth of AVAX tokens, with the hacker reportedly sending the funds to
Derek Andersen2 hours agoFirst Abu Dhabi Bank completes cross-border payments testing on JPMorgan OnyxThe FAB pilot follows Bank ABC’s in Bahrain. JPMorgan also just launched its Tokenization Collateral Network on Onyx
Crypto Economy Recaptures $2 Trillion, Bitcoin Moves Back Into the World’s Top 10 Most Valuable Assets
Crypto Economy Recaptures $2 Trillion, Bitcoin Moves Back Into the World"s Top 10 Most Valuable Assets The crypto economy has jumped back above the $2 trillion mark after falling b
Near Protocol ‘darkness’ and ‘sovereignty’ X posts raise hack suspicion
Arijit Sarkar1 hour agoNear Protocol ‘darkness’ and ‘sovereignty’ X posts raise hack suspicionThe unusual messages, including a Morse code video and gothic-font tweets, left the crypto community puzzled. Near Pro
Decentralized App BCH Bull Prepares for Launch, Platform Allows Users to Long or Hedge Bitcoin Cash Against a Myriad of Tradeable Assets
Decentralized App BCH Bull Prepares for Launch, Platform Allows Users to Long or Hedge Bitcoin Cash Against a Myriad of Tradeable Assets Just recently the developers behind the Bit
Cboe’s New Cash-Settled Bitcoin ETF Options: Could This Spark A Move Beyond $100,000?
Este artículo también está disponible en español. Cboe, the derivatives exchange for digital assets and securities trading, is set to make a big addition to the crypto la
How Foresight Ventures Is Approaching Investments in the Current Market Environment
How Foresight Ventures Is Approaching Investments in the Current Market Environment The Foresight Ventures founding and partnership team includes veterans of some of the top financ
TradFi Wall Street firms pushing for Ether ETF approval, says former Binance Labs head
Zoltan Vardai11 hours agoTradFi Wall Street firms pushing for Ether ETF approval, says former Binance Labs headWall Street firms want Ether ETFs more than crypto natives due to the ETF management fees, Bill Qian told Coi
Helen Partz15 hours agoCrypto banking app Bitwala relaunches via new partnership with StrigaEuropean crypto-banking platform Bitwala, formerly known as Nuri, is coming back after ceasing operations in 2022.3631 Total vie
Jesse Coghlan7 hours agoCrypto custodian Prime Trust files for Chapter 11 bankruptcyThe crypto custodian’s bankruptcy comes as it’s been unable to honor customer withdrawals for months.3798 Total views22 Total shares