Angel investor Balaji Srinivasan says the collapse of crypto alternate FTX ought to be handled as “a preview of state failure.” He warned that in the future U.S. greenback financial institution 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 alternate FTX in a collection of tweets Saturday. Formerly the CTO of crypto alternate Coinbase and a common associate at enterprise capital agency Andreessen Horowitz (a16z), Srinivasan can be the writer of The Network State, a WSJ bestseller.
“Treat FTX as a preview of state failure,” he wrote, including:
One day, your USD checking account steadiness could also be frozen or inflated to worthlessness. The authorities will present no real interest in prosecuting — they’re those who ordered it within the first place. That world is coming and we’d like alternate options.
“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 defined in one other 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 folks 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?” one other questioned. A 3rd opined: “Comparing regulated banking industry to unregulated crypto exchange is misleading.”
Srinivasan additionally commented on bitcoin as a hedge towards inflation in one other tweet on Saturday. The angel investor detailed:
It’s a hedge towards hyperinflation, financial debasement, financial institution freezes, and wealth seizure. It’s already confirmed itself in that function, in locations like Venezuela, Lebanon, Nigeria. For ‘standard’ inflation it could finally have a gold-like function, however that takes many years to present.
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