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$1 Million Bet against Crypto: Will Warren Buffet Take the Bait?

In an ironic turn of events, Morgan Creek has boldly put up a $ 1 million wager, betting the cryptocurrency market to outmatch S&P 500 before the end of the next decade.

Buffet Bet 2.0

When Warren Buffet cashed out his famous $1 million bet at the end of 2017, many people had long forgotten a bet was made in the first place. The notable magnate who is known to be a long-time bull on S&P entered into a sporty bet with Protégé Partners in 2007, vouching for the S&P index fund to outperform a collection of hedge funds. While the two parties initially placed a bond of a little over $300, 000, in what was expected to appreciate to a million dollars; the bond would yield Buffet more than double of what he expected—$2.2 million.  Buffet won.
Notoriously known for being a long-term investor, Warren Buffet has been unabashed in his criticism of cryptocurrencies and has been a consistent critic of the industry. Regardless of his views, however, if anything, the cryptocurrency industry has continued to prove critics and analysts wrong: This is no doubt the basis of Morgan Creek’s bullishness.
Following a report by CNBC, the investment firm has announced an open challenge, and dubbed their betting challenge Buffett Bet 2.0, in what though seeming reminiscent of the 2007 bet, is completely quite ironic. The Buffet Bet 1.0 version might have tilted towards the favour of an index fund; this second improbable version is obviously at its farthest opposite pole.
The crypto investment firm is prepared to place a $1 million wager and has invited critics to follow up their assertive claims with action. While financial analysts and stock brokers can easily assert predictions and dismiss the prospect of the evolving industry, Morgan Creek does not think many of such critics can back up their claims with a lot at stake. The increasing benefits and solutions that the industry provides coupled with its growing influence make its global adoption arguably inevitable.
Anthony Pompliano, who co-founded Morgan Creek said despite the vast number of critics, anyone wild enough to take the deal must be incredibly bullish on index funds or have a total disregard for digital assets.
Anthony Pompliano Made A Case For Bitcoin On CNN
Pompliano went on further to highlight the significant losses suffered by companies such as Facebook—with a 24% loss—and US-based Diamondback Energy in 2018. He observed:

“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.”

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