{"id":15373,"date":"2022-12-12T03:04:41","date_gmt":"2022-12-12T03:04:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/balaji-srinivasan-says-ftx-is-a-preview-of-state-failure-usd-bank-accounts-could-be-frozen-or-inflated-to-worthlessness-economics-bitcoin-news\/"},"modified":"2022-12-12T03:04:41","modified_gmt":"2022-12-12T03:04:41","slug":"balaji-srinivasan-says-ftx-is-a-preview-of-state-failure-usd-bank-accounts-could-be-frozen-or-inflated-to-worthlessness-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/balaji-srinivasan-says-ftx-is-a-preview-of-state-failure-usd-bank-accounts-could-be-frozen-or-inflated-to-worthlessness-economics-bitcoin-news\/","title":{"rendered":"Balaji Srinivasan Says FTX Is a Preview of State Failure, USD Bank Accounts Could Be Frozen or Inflated to Worthlessness \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Angel investor Balaji Srinivasan says the collapse of crypto exchange FTX should be treated as \u201ca preview of state failure.\u201d He warned that one day U.S. dollar bank accounts \u201cmay be frozen or inflated to worthlessness,\u201d emphasizing that the authorities \u201cwill show no interest in prosecuting.\u201d Srinivasan cautioned: \u201cThat world is coming and we need alternatives.\u201d<\/strong><\/p>\n

Balaji Srinivasan on FTX, State Failure, and U.S. Dollars Becoming Worthless<\/h2>\n

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.<\/p>\n

\u201cTreat FTX as a preview of state failure,\u201d he wrote, adding:<\/p>\n

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One day, your USD bank account balance may be frozen or inflated to worthlessness. The authorities will show no interest in prosecuting \u2014 they\u2019re the ones who ordered it in the first place. That world is coming and we need alternatives.<\/p>\n<\/blockquote>\n

\u201cIt\u2019s all just a dress rehearsal for the ultimate rug pull \u2014 when the state prints trillions, monetizes the debt, and ends the fiat century,\u201d the angel investor explained in another tweet. \u201cOur space will be prepared. We know what that looks like. And our trust-minimizing systems will be life rafts for the world.\u201d<\/p>\n

Many people on Twitter agreed with Srinivasan, stating that bitcoin and decentralization are the answer.<\/p>\n

However, some disagreed, telling the entrepreneur that FTX is a fraud and a Ponzi scheme. \u201cIt\u2019s not a preview of state failure. It has nothing to do with that. It\u2019s simply fraud,\u201d one wrote. \u201cHow can you equate a 32-year-old con man who had no controls, structure, systems, or board to the U.S. government?\u201d another questioned. A third opined: \u201cComparing regulated banking industry to unregulated crypto exchange is misleading.\u201d<\/p>\n

Srinivasan also commented on bitcoin as a hedge against inflation in another tweet on Saturday. The angel investor detailed:<\/p>\n

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It\u2019s a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure. It\u2019s already proven itself in that role, in places like Venezuela, Lebanon, Nigeria. For \u2018standard\u2019 inflation it may eventually have a gold-like role, but that takes decades to show.<\/p>\n<\/blockquote>\n

Do you agree with Balaji Srinivasan about FTX and bitcoin? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

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