TronWeekly

Crypto World News

You are here: Home / Archives for Balaji Srinivasan

Balaji Srinivasan

Tariffs vs. Crypto: Balaji Says Smart Contracts Will Win

by

  • Former A16Z investor Balaji Srinivasan says tariffs could hurt the U.S. economy but drive global adoption of crypto.
  • Smart contracts may soon replace cross-border agreements as trust in traditional economic policies erodes.
  • The shift from fiat to crypto is accelerating as economic uncertainty pushes capital into decentralized systems.

U.S. tariffs are back in the limelight but Balaji Srinivasan, former A16Z investor and crypto advocate, believes they could weaken the economy but could accelerate global crypto adoption by pushing more financial activity on-chain. With rising nationalism and economic protectionism, global capitalism will transition to decentralized, trustless smart contracts, making crypto the ultimate winner.

Srinivasan explained that tariffs trigger price rise faster than production can recover, and reshoring industries is significantly harder than building them from scratch. Meanwhile, the U.S. continues to profit from money money-printing business, making domestic manufacturing far less attractive.

Tariffs
Tariffs vs. Crypto: Balaji Says Smart Contracts Will Win 2

However, the real beneficiaries of rising tariffs may not be domestic industries but the crypto sector. Srinivasan believes that as trust in traditional economic policies declines, businesses and investors will look to blockchain-based solutions for cross-border transactions.

“Because internationalist capitalism will move onchain, even as nationalism and socialism gain ground offline. Because the only truly binding cross-border contracts will soon be smart contracts. And because you might not be able to trust a country’s economic promises, but you can trust cryptography’s mathematical guarantees,” he stated, emphasizing how decentralization provides mathematical guarantees that traditional economies cannot.

Code vs. Tariffs: Balaji’s Bold Prediction Comes True?

The argument aligns with predictions made in 2021 when Srinivasan forecasted a shift toward a code-based financial order. He reiterated that while tariffs historically coincided with U.S. industrial expansion, they are unlikely to reverse economic decline. “If the U.S. can print a dollar with 100% margin, why sell a screw for 1% margin, even with a tariff?” he questioned.

While some users pushed back, questioning whether tariffs could ultimately benefit the U.S., Srinivasan remained firm. He acknowledged both sides of the debate but argued that the real shift is happening on-chain. As fiat-based economies struggle with inflation and protectionist policies, the crypto sector is poised to absorb capital fleeing traditional financial systems.

Balaji’s statement comes as Trump unleashed tariff bombshell—25% on Canada and Mexico—sparked a crypto meltdown, wiping out over $110 billion from the market. Bitcoin slid below $89K, and altcoins crashed, as trade war fears rattled investors.

With the rise of decentralized finance (DeFi) and the ability to trade assets trustlessly, Srinivasan’s warning make sense—moving away from traditional economies and securing their wealth in crypto.

Bitcoin vs. USD: Battle of the Century

by

The monumental clash between Bitcoin and the USD dollar holds the key to the future. Renounced crypto advocate Balaji S. Srinivasan has penned a thought-provoking post on why he believes that the real electoral contest of the century is between BTC and USD. Through his detailed analysis, Srinivasan makes some strong, persuasive points, urging readers to assess the transformative potential of the digital revolution.

In the extensive thread, the Bitcoin luminary highlights some key features of Bitcoin that set it apart from fiat. First is the inability to fake the price of BTC, unlike the mortgage-backed securities that were supposedly rated AAA [lowest default risk]. Secondly, the tradfi system has so far failed to permanently restrict the exit from dollars to Bitcoin. Recall that the SEC unsuccessfully fought against Grayscale for almost a decade to prevent ETF access.

Srinivasan lauded the ruling by the three judges in the Grayscale case. “I’m not sure if even those august magistrates yet understand that their decision may end up being among the most important rulings in history.” This, in turn, has driven more investments from conservative institutions, which were earlier wary of dipping their toes in “speculative” crypto assets.

US Senators Urge Transparency In Bitcoin ETF Disclosures

The American entrepreneur also referred to the Vanguard CEO’s recent resignation after 30 years. Industry insiders believe that the departure may be linked to the exec’s aversion to digital assets, which is seen as conflicting with current trends in the industry. These highlight the shifting landscape of the financial ecosystem.

This is the real election. So: that’s why Bitcoin vs. USD is the real election. It’s more important than GOP vs DNC. It’s an election where one candidate is in uncontrolled opposition. It’s an election where the whole world legitimately has the franchise because the whole world is diluted by the dollar. It’s an election where the world can deprecate the 20th century centralized state, and reverse a century of Keynesianism and Communism. Polling has begun. Go vote early and often.

Bitcoin
Bitcoin vs. USD: Battle of the Century 4

Last week, US senators pressed the SEC to ensure crypto dealers give investors proper disclosures around BTC ETFs. Rhode Island Senator Jack Reed and California’s Laphonza Butler have acknowledged the vulnerabilities of the market, stating that the bitcoin market is more established and closely monitored compared to other cryptocurrencies but still susceptible to fraud and manipulation.