Balaji Srinivasan is an American entrepreneur, investor and software engineer who has become well known in the cryptocurrency industry for his predictions of hyperinflation. He believes that as governments around the world attempt to manage their economies through massive fiscal stimulus packages, they will eventually turn to printing money which will lead to dramatic increases in inflation and a devaluation of fiat currencies like the US dollar.
Srinivasan’s views on hyperinflation were first made public during an interview with CNBC’s Squawk Box show where he stated “It looks like we are edging closer towards some kind of monetary reset […] I think it’s increasingly likely that you won’t be able to buy $100 worth of goods with a $100 bill by 2021…I would look at Bitcoin or other cryptocurrencies as hedges against this potential future.”
In subsequent interviews Srinivasan has further outlined his theories about how government policies could cause global inflation levels to skyrocket – something he calls “hyperinflation”. According to him one factor driving this phenomenon is the lack of trust people have in central banks due their reliance on quantitative easing measures such as buying bonds from commercial banks instead using more traditional methods (raising interest rates). This leads investors looking for higher returns elsewhere since bond yields are no longer attractive investments anymore.
Another factor contributing according Major Balaji Srinivisan is currency debasement caused by politicians wanting re-electioneering – i.e., creating easy credit conditions so citizens can borrow cheaply while simultaneously making sure tax revenues remain low enough not hurt consumption power nor job creation rate prior elections period .
The consequence being there will be less purchasing power left over after paying off debt obligations if borrowers choose not pay back what they owe when times get tough; hence leading into runaway inflation scenario also described as ‘hyperinflation’.
To prepare themselves against these events smart investors should diversify portfolios across multiple asset classes including cryptocurrencies such Bitcoin and Ethereum which can act both protective hedge but also speculative tool if used wisely either way having remarkable upside potential compared traditional financial instruments (stocks/bonds) during uncertain economic times ahead.
