According to a CNBC report published on 6, Dec. 2018, Morgan Creek is betting $1 million that the Crypto Market will outperform the S&P 500.
The cryptocurrency investment firm has named the challenge as ‘Buffet Bet 2.0’, imitating Warren Buffet’s bet in 2007 against Protégé Partners. The difference this time is that the bet goes against the S&P 500, an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.
Morgan Creek is challenging any investor who believes the S&P 500 will be more profitable than Creek’s crypto investments over a 10 year period.
In a phone interview with CNBC, Anthony Pompliano said that anyone who accepts the bet is someone who is highly bullish on the S&P 500 or who believes cryptocurrencies are worthless or overvalued.
He went on to say:
“This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities.”
“A lot of people might look at this and just think we’re bullish on crypto — but you need to look at what asset we’re going up against. Public equities aren’t exactly at their all-time highs either.”
The Co-Founder of Morgan Creek, Pompliano also pointed out the recent losses in FANG stocks and other investor favorites, namely Facebook.
The partners at Morgan Creek are still yet to find someone to take up the bet.
Like many other popular crypto influencers and enthusiasts, the company is quite optimistic about the future of cryptocurrencies, given the recent crypto market crash where greats like Bitcoin have fallen to more than 40% its value last month.
Link to the original news article can be found here.
Whether the company will win the bet or not, we can only 10 years from now. What are your predictions? Let us know in the comments section below.
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