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

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