‘Fed wants you dead,’ Bitcoin counters state control

Former Coinbase CTO Balaji Srinivasan spoke about Bitcoin’s potential to protect wealth against inflation at the Network State Conference in Singapore on September 22.

Srinivasan argued that Bitcoin (BTC) acts as a shield against the government’s gradual erosion of wealth through inflation.

“The Fed wants you to die—just a little bit every year. And we resist that. We oppose it,” Srinivasan said of Bitcoin and crypto.

Srinivasan compared the US Federal Reserve’s approach to inflation to a slow process of wealth loss over time. In the current financial system, inflation is generally considered normal. The Fed targets inflation of around 2% per year, meaning that the money people hold gradually loses its value.

Srinivasan got into a social media controversy in March 2023, where he placed a $2 million bet that Bitcoin would reach $1 million by June 17, 2023.

In the bet started by Twitter user James Medlock, it was claimed that if Srinivasan’s prediction comes true, he will win $1 million worth of USDC and keep 1 BTC, and if his prediction does not come true, Medlock will win $1 million worth of USDC.

Srinivasan is an entrepreneur, investor, and former Chief Technology Officer of Coinbase, a leading cryptocurrency exchange. Prior to joining Coinbase, he co-founded several successful technology companies, including Counsy and Earn.com. Srinivasan is also known for his time as a general partner at Andreessen Horowitz.

Financial parallels to Bitcoin

Srinivasan also drew parallels between the financial and medical systems in his remarks. He argued that just as inflation is seen as an inevitable part of the economy, the healthcare system sees aging as something to be managed in small steps.

Criticizing this mentality, he argued that just as people are willing to lose a little money every year, they are also expected to be willing to lose a little bit of their health every year.

According to Srinivasan, Bitcoin offers an alternative to this approach.

“Bitcoin is about preventing the government from slowly draining your wealth.”

Srinivasan.

Unlike traditional currencies, Bitcoin has a fixed supply, meaning it is not controlled by governments or banks. This setup makes it more resistant to inflation and offers a potential way for people to preserve their wealth over time.