It’s not a new view, but in the wake of the collapse of three U.S. banks and Credit Suisse’s rescue, one investor’s anti-bank, pro-bitcoin argument is making waves.
Balaji Srinivasan is the former chief technology officer at the crypto exchange Coinbase, as well as the co-founder of Counsyl, a health technology firm. And the argument he made over the weekend seems to be resonating. His argument is that banks have been able to “hide” their insolvency in footnotes. The Federal Deposit Insurance Corp. said the U.S. banking system was sitting on $620 billion of unrealized losses. Silicon Valley Bank parent SVB Financial had to sell a portfolio of bonds it wanted to hold until maturity in a bid to meet the surge in deposit outflows. SVB did disclose that in a footnote, and even discussed it on an earnings call.
In the future, we will look back and talk about all the signs and all the people who refused to believe them. Anyone who believe that a country that will go to war, to protect the dollar will then step aside for bitcoin is nuttier that squirrel poop.
🤔 Last couple paragraphs move too quickly and make claims that are way too under-explained. C-