He warned that one day, the dollar bank accounts “could be frozen or inflated to worthlessness“, stressing that the authorities “will show no interest in prosecuting.“Srinivasan warned, “This world is coming and we need alternatives“.
Balaji Srinivasan on FTX, state bankruptcy and the depreciation of the US dollar.
Investor Balaji Srinivasan commented on the collapse of crypto-currency exchange FTX in a series of tweets Saturday. Formerly the CTO of crypto-currency exchange Coinbase and a general partner at venture capital firm Andreessen Horowitz (a16z), Balaji Srinivasan is also the author of The Network State, a WSJ bestseller.
Treat FTX as a preview of state failure.
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.
– Balaji (@balajis) December 10, 2022
“Treat FTX as a snapshot of the state’s failure,” he wrote, adding:
One day your USD bank account balance could be frozen or inflated to worthlessness. The authorities will show no interest in prosecuting – they ordered it in the first place. This world is coming and we need alternatives.
“This is all a dress rehearsal for the ultimate rug-pulling – when the state prints trillions, monetizes the debt, and ends the century of fiat money“, the angel investor explained in another tweet. “Our space will be prepared. We know what that looks like. And our trust reduction systems will be life rafts for the world.“
Many people on Twitter agreed with Srinivasan, saying that bitcoin and decentralization are the answer.
However, some disagreed, telling the entrepreneur that FTX is a fraud and a Ponzi scheme. “This is not a glimpse into the failure of the state. It has nothing to do with that. It is simply a fraud“, wrote one of them. “How can you equate a 32 year old crook who had no control, no structure, no system, and no board of directors with the US government?“, questioned another. A third opined, “Comparing the regulated banking industry to an unregulated crypto exchange is misleading“.
Balaji 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, currency depreciation, bank freezes and wealth seizure. It has already proven itself in this role, in countries like Venezuela, Lebanon, Nigeria. For “standard” inflation, it may eventually have a similar role to gold, but this takes decades to manifest.