Hyperinflation and Bitcoin betting, AI replacing early jobs and more

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Inflation in the United States and how it could affect the price of Bitcoin (BTC) are two of the main concerns of investors around the world. To illustrate, a prominent crypto personality has bet big money on the future of the US economy: the former Coinbase executive recently paid $1.5 million to settle a bet on Twitter about possible hyperinflation in the American economy.

The United States may not be experiencing hyperinflation, but the possibility of prices spiraling out of control seems to worry the Federal Reserve. The Fed raised interest rates by a quarter point on May 3 to the highest level in 16 years, pushing the target range for its benchmark from 5% to 5.25%.

As inflationary pressures continue, Bitcoin is still seen as a safe haven for many, with crypto firms weighing in on the digital currency to combat inflation and turmoil in traditional finance.

This week, Crypto Biz explores the latest wild bet on Bitcoin prices, inflation fears, and the jobs that artificial intelligence may soon replace.

Balaji pays off his crazy $1 million Bitcoin bet, 97% below price target

A closely watched bet between former Coinbase CTO Balaji Srinivasan and pseudonymous Twitter user James Medlock has been closed, with Srinivasan paying $1.5 million to settle. The betting started on March 17 when Medlock offered to bet anyone $1 million that the United States wouldn’t experience hyperinflation. Hours later, the former Coinbase executive accepted the bet, claiming that an impending crisis would lead to US dollar deflation and, thus, a hyperinflation scenario, pushing the price of BTC to $1 million. . As part of the deal, Srinivasan paid $500,000 to Medlock, donated $500,000 to core Bitcoin developers, and donated another $500,000 to the nonprofit charity, Give Directly.

I just burned a million to tell you they print trillions. pic.twitter.com/pX5622rjUO

— Balaji (@balajis) May 2, 2023 MicroStrategys Bitcoin Conviction Strong as it Posts Q1 Earnings

Bitcoin investment strategy is stronger than ever on business intelligence platform MicroStrategy after the company posted its first quarterly profit since 2020. The company returned to green with a profit of $94 million , primarily attributed to a one-time tax benefit of $453.2. million. The company further reduced its leverage by repaying a $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank. Quarterly results were also impacted by a 2.2% increase in revenue from a year ago to $121.9 million. MicroStrategys CEO Phong Lee said the company will continue to execute its dual strategy of business intelligence software development and bitcoin acquisition. The firm thinks its Bitcoin thesis is a pretty good way to outperform the market.

Since @MicroStrategy adopted a #Bitcoin strategy: pic.twitter.com/rrYTbvOkUS

— Michael Saylor (@saylor) May 1, 2023 Coinbase stock to be weighed down until US rules are clear: Citi

Coinbases stock price will continue to be weighed down until regulators establish the legal rules of the road in the United States, according to Citi analysts. The bank downgraded the crypto exchange’s shares from buy to neutral and lowered its price target, citing too many unknowns as the company battles with regulators. However, the bearish sentiment on Coinbases shares is not stopping investment firm ARK Invest from increasing its exposure to the crypto exchange. ARK purchased 168,869 Coinbase shares for its exchange-traded funds on May 1, worth nearly $8.5 million. In April, ARK bagged 304,300 shares worth $17.5 million. Previously, the company bought 2.4 million shares in March for about $117 million.

Citi’s analysis was released ahead of Coinbase’s first-quarter earnings report released on May 4.

7,800 jobs at IBM could be replaced by AI within years, CEO suggests

IBM expects to put a pause on hiring for back-office roles that could potentially be automated by artificial intelligence instead. According to the company’s CEO, Arvind Krishna, back-office positions, such as those in human resources and accounting departments, will likely be the first to be automated by AI. Nearly 30% of these positions will be easily replaced by AI over five years, Krishna claimed in an interview. IBM employs 282,000 employees worldwide, according to data from LinkedIn. Staff not in contact with customers number nearly 26,000 people.

Dropbox: lay off 500 people and replace them with AI

IBM: suspend hiring of about 7,800 roles that could be filled by AI

AI is already replacing jobs

— Geneviève Roch-Decter, CFA (@GRDecter) May 1, 2023 Before you go: average people’s wealth will be completely destroyed by inflation,” says Arthur Hayes

The majority of people will see their wealth gradually eaten away by the devaluation of silver, according to Arthur Hayes, co-founder and former CEO of crypto derivatives exchange BitMEX. He thinks the world’s largest economies will be forced to inflate the large public debt accumulated in recent years through the printing of money. With long-term inflation on the horizon, Hayess’ investment thesis focuses on preserving wealth by investing in digital assets. You can watch his exclusive interview with Cointelegraph on our YouTube channel.

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