Morgan Creek Ready To Risk $1 Million Betting On Success Of Crypto
The venture capital firm Morgan Creek, founded and headed by Anthony Pompliano, is ready to bet $1 million that digital currencies will surpass the S&P 500 stock index in 10 years, CNBC reports. This means that digital assets will have to outperform 500 major US stock companies with the largest capitalization.
Morgan Creek dares to repeat a similar wager by a well-known crypto skeptic Warren Buffett. In 2007, Buffett bet that the dynamics of S&P 500 would overtake a group of five hedge funds — and won the deal. The venture company, however, goes up against the index, calls this move “Buffett Bet 2.0”, and encourages bitcoin opponents to bank on the contrary outcome.
The crypto enthusiast Anthony Pompliano believes the one who will dare to bet against cryptocurrencies is a skeptic considering digital coins overvalued or worthless. However, he explains his confidence in victory not only by his belief in bitcoin — according to Pompliano, public equities are having hard times now. He added that once high-flying stocks of a tech company, like Facebook, lose 24% of value year by year.
At the same time, bitcoin is breaking anti-records in 2018. Only in November, the cryptocurrency lost 37% of the price, reaching the minimum annual level of $3,400. It is worth mentioning that in December 2017, bitcoin was traded at $20,000.
Pompliano himself previously stated that the asset was highly overvalued, and predicted that bitcoin would drop to $3,000. Despite this, the expert called bitcoin the most profitable asset class that had managed to bypass even the Nasdaq index, showing a 400% growth.
Recently, analysts have concluded that bitcoin will regain lost positions by the end of 2019.