Altcoins News

A cryptoasset manager is offering $1M in the ‘Buffett Bet 2.0’ challenge

Morgan Creek Digital, a cryptoasset manager is offering one million U.S dollars in the ‘Buffett Bet 2.0’ challenge.

The cryptoasset manager is betting that, in the coming 10 years, its virtual currency index will exceed S&P 500. Morgan Creek is reviving a similar challenge that was created by Warren Buffett in 2007, a known critic of virtual currencies, where he claimed that S&P 500 will outperform a given group of hedge funds. Buffett won the bet.

The cryptoasset manager dares those that believe that the S&P 500 will be more profitable than their own collection of virtual currencies in ten years to occupy the opposition part of the bet.

Morgan Creek Digital’s co-founder, Anthony Pompliano, believes that those who will be on the opposition bench will be those that follow Buffett’s school of thoughts or they just believe on the S&P500. Apart from just being bullish on cryptocurrencies, Pompliano noted that even investor favorite options like stocks have been hit with losses in the recent past.

However,the losses that plagued the stock market can be considered negligible compared to those recorded in the crypto market. For example, in November this year,Bitcoin shed 37% and in the whole of 2018, Bitcoin has lost 73%.

Pompliano noted that:

“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 cryptoasset manager “which requires a minimum $50,000 investment, was structured to give similar exposure to the S&P 500, just with cryptocurrencies.” Buffett has over time criticized cryptocurrencies and recently said that crypto is “rat poison squared.”

Whether Morgan Creek Digital or the Buffetts-in-crypto win the bet, the 1 million will be donated to charity.

Seeing that Buffett won in the last bet challenge against Protégé Partners, do you think the cryptoasset manager has high chances of winning now that the bet takes 10 years before the winner is announced?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

Leave a Comment

Your email address will not be published. Required fields are marked *