• Balaji Srinivasan, a venture capitalist and angel investor, believes that hyperinflation is happening now.
• He has made million-dollar bets that the price of Bitcoin will exceed $1M in 90 days.
• He advised investors to buy Bitcoin, which he believes to be “a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.”

Balaji Srinivasan Says Hyperinflation Happening Now

Venture capitalist and angel investor Balaji Srinivasan believes that hyperinflation is happening now. He pointed out recent government and Federal Reserve bailouts of Silicon Valley Bank and Signature Bank as evidence of this. Furthermore, he has made million-dollar bets that the price of Bitcoin will exceed $1M in 90 days.

Bitcoin as a Hedge Against Hyperinflation

Srinivasan explained in December last year that bitcoin is “a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure.” He added that it “may eventually have a gold-like role” as a hedge against “standard” inflation but stressed that it takes decades to show this effect.

Advice for Investors

Believing that hyperinflation is already here, Srinivasan also urged investors to buy BTC in his tweet Friday. He emphasized: Buy bitcoin and get your coins off exchanges. In addition to this advice for investors looking to protect their assets from potential financial turmoil caused by hyperinflation or other factors, Srinivasan took a bet initiated by James Medlock on Twitter Thursday – where he agreed to bet $1 million USD if the U.S does not enter into a state of hyperinflation within 90 days.

James Medlock’s Bet

The former Coinbase CTO responded: I will take that bet. You buy 1 BTC. I will send $1M USD. This is ~40:1 odds as 1 BTC is worth ~$26k at the time of writing this article (May 2021). The termis 90 days from today (Friday).

Conclusion

With increasing bailouts being issued by governments worldwide due to Covid-19 related economic woes; many experts such as Balaji Srinivasan are predicting an onset of global inflationary pressures which could potentially lead us into a state of hyperinlfation over time. As such investors should consider taking steps to protect their assets from any potential financial turmoil caused by such events – with one suggestion being the purchase of Bitcoin which can act as a hedge against these possibilities occurring in the short term future

Summary

• India’s Ministry of Finance has notified that certain crypto activities will be subject to the Prevention of Money Laundering Act, 2002 (PMLA).
• The move is a positive step in recognizing the sector and will strengthen efforts to prevent virtual digital assets from being misused by bad actors.
• India recently asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to collaborate on a joint paper to help countries formulate comprehensive crypto policies.

Background

India’s finance ministry has announced that crypto transactions will be covered under the Prevention of Money Laundering Act, 2002 (PMLA). The move “is a positive step in recognizing the sector,” according to a crypto insider, who also noted that it will strengthen the industry’s efforts to prevent virtual digital assets “from being misused by bad actors.”

Application of PMLA to Crypto Transactions

India’s Ministry of Finance published a gazette on Tuesday notifying that certain crypto activities “when carried out for or on behalf of another natural or legal person in the course of business” will be subject to the Prevention of Money Laundering Act, 2002 (PMLA). According to the notice, exchange between virtual digital assets and fiat currencies, exchange between one or more forms of virtual digital assets, transfer of virtual digital assets as well as safekeeping or administration of virtual digital assets and participation in financial services related to offer and sale of virtual digital assets will all fall under this money laundering law.

Reactions from Crypto Industry Insiders

Sharat Chandra, co-founder India Blockchain Forum, stated this notification is a great step towards compliance for the crypto industry. Sumit Gupta, co-founder and CEO Indian crypto exchange Coindcx commented “Slowly but surely we are moving towards regulated crypto ecosystem”. Ashish Singhal, co-founder cryptocurrency investing app Coinswitch opined “Finance Ministry’s notification…is a positive step in recognizing sector”.

< h2 > G20 Meeting & India’s Request for Comprehensive Crypto Policies
The government India recently led discussions cryptocurrency regulation among G20 finance ministers central bank governors. At conclusion G20 meeting finance chiefs , India asked International Monetary Fund ( IMF ) Financial Stability Board ( FSB ) collaborate joint paper help countries formulate comprehensive crypto policies . India ‘ s Finance Minister Nirmala Sitharaman

• Russia is creating its first mutual investment fund dedicated to financing cryptocurrency mining operations.
• The fund will be available to qualified investors and will finance the acquisition of coin minting equipment.
• Interest in crypto mining has increased significantly in the past year, leading to negotiations on the organizing of a number of funds related to investments in industrial mining.

Investment Fund Focused on Crypto Mining to Be Created in Russia

Russia is creating its first mutual investment fund dedicated to financing cryptocurrency mining operations. The fund will be available to qualified investors and will finance the acquisition of coin minting equipment. It will operate as a venture fund for the purchase of mining hardware through a special entity which will then lease the equipment.

Requirements for Investors

The new closed-end fund will be established by Finam Management, which will register it with the specialized depository in March. Only qualified investors will have access, with a minimum threshold of 300,000 rubles (almost $4,000). The company intends to raise 500 million rubles (over $6.6 million) before incorporating the leasing firm, Finam CEO Vladislav Kochetkov explained. Part of the money will be used to buy mining machines and the rest will be spent to pay for electricity and maintain the fund.

Crypto Mining Regulations

Management companies have previously created mutual funds focused only on businesses developing blockchain technology. In 2021, some tried to register funds for cryptocurrencies and their derivatives but were prohibited by Bank of Russia due to foreign crypto assets being included in mutual funds. However, after a yearlong sanctions period there is speculation that at least some crypto-related activities such as mining may get approved by Bank of Russia due to softer regulations regarding them now than before.

Increase in Interest from Banks & Investment Companies

Bitriver reported that since Q4 2022 there has been an increase in interest from largest Russian banks, investment companies and management firms towards crypto mini g projects leading them into final stages of negotiations on organizing funds related investments into industrial mining projects . Alexander Baryshnikov from Bitriver said: “We are in the final stages of negotiations on the organizing of a number of funds related to investments in industrial mining” .

Conclusion

The establishment of an investment fund focused on cryptocurrency mining shows that there is growing support for this industry among Russian banks, investment companies, and management firms despite continued regulatory uncertainty surrounding cryptocurrencies overall. As more players enter this space it’s likely that we’ll see even more development taking place within this sector over time