Two cryptocurrency bets captured the imagination this week, both of which could have vastly different outcomes for those involved. One sees a noted crypto enthusiast looking to bag a million dollars in 2028, and the other, well, we don’t want to spoil the ending here.
Morgan Creek Digital vs S&P 500
Morgan Creek Digital has used as its inspiration a famous bet made by noted Bitcoin skeptic Warren Buffett, which it has turned it on its head. In 2007, Buffett bet asset manager Protégé Partners $1 million that over the course of a decade the S&P 500 would outperform a group of hedge funds, which it did, with Buffett donating his winnings to charity. Morgan Creek intends to wager $500,000 (again for charity) that over the decade to come, cryptocurrencies will outperform the S&P 500, citing recent losses in top technology stocks as a portent of things to come. Morgan Creek co-founder and partner Anthony Pompliano said in an interview with CNBC:
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.
So far no one has come forward to take Pompliano up on his wager. But, with the amount of wealthy cryptocurrency skeptics out there, including Buffet himself who famously called Bitcoin “rat poison squared”, it shouldn’t be long before his offer is taken up – if they want to put their money where their mouths are.
Anonymous Ethereum Fan vs Bear Market
This seemingly one-sided affair comes courtesy of an anonymous user of the Maker margin trading platform. In a series of wagers opened in September, the user has been consistently bullish on the price of Ethereum and has posted hundreds of contracts preempting positive price action.
However, since September 8 when the first contract was open the price has dropped by 60%, with the user adding more contracts with each drop, assuming (or praying) a reversal is on the cards. He (or she) is now at the point where an Ethereum price of $82.01 will trigger liquidation and a loss of $5 million.
This truly gargantuan prospect is becoming perilously close to reality, as data from CoinMarketCap has seen price has flirt with a heart-stopping $83.47 Friday morning. With the bear market potentially far from over, it has to be only a matter of time before this Ethereum bull is crying into their keyboard. If however $83.47 acts as a slingshot and shoots Ethereum back into triple digits or beyond, it’s safe to assume the shouts of joy will be heard in outer space.