Morgan Creek Capital Management, the investment firm that is home to well-known crypto evangelist Anthony Pompliano, has placed a $1 million bet that the digital assets space will outperform the stock market, referring to the S&P 500.
The bet takes after one placed by renowned investor, philanthropist and billionaire Warren Buffett, who bet $1 million that the stock market would do better than hedge funds. Buffett won the bet and donated the money to charity.
Morgan Creek calls this bet the Buffett Bet 2.0. The bet specifically challenges anyone who thinks that the S&P 500 would do better than the firm’s crypto portfolio. The bet will be funded from executives’ personal funds and not from company funds.
Interviewed over the phone on CNBC, Pompliano said:
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.
Just a few days ago, Morgan Creek CEO Mark Yusko said that Bitcoin could grow by a factor of 20 in the next decade — another bold prediction that is in line with a prediction made by Yusko last year that Bitcoin could eventually hit $400,000.
Bobby Lee Makes a Prediction
Bobby Lee, founder of BTCC and brother of Litecoin founder Charlie Lee, has made a somewhat light-hearted prediction on the cryptocurrency market that is astonishing in its claim.
In a series of tweets, Lee commented on the crests and troughs of the market over the years, and how that pointed to a return to high values in the early 2020s.
If history repeats perfectly, then the current bear market for #Bitcoin would bottom out at $2,500 next month, in Jan 2019.
And then the next rally would start in late 2020, peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023.
Something like that?🙂 https://t.co/M8ljIVnt73— Bobby Lee (@bobbyclee) December 7, 2018
While the prediction is good in the long run, he does say that if the market pattern repeats itself, we will see a low of $2,500 soon.
While Lee is clearly very bullish on Bitcoin and the digital assets market, the remarks ought not to be taken as any clear indication that the market will in fact proceed as Lee suggests.
Lee’s valuation of the bottom is in the same region as Pompliano’s prediction, who earlier in the year said that Bitcoin could hit $3,000 before rebounding over time. To his credit, he has maintained the belief that Bitcoin will experience a few tumbles before eventually overtaking gold.
