Yesterday, smartereum.com reported that many financial institutions are making major investments in cryptocurrencies and the underlying blockchain technology. The fact that these ones are bullish about the industry shows that there is still hope for a full market recovery. Now, investment management firm, Morgan Creek Capital has placed a $1 million bet on BTC to show how bullish it is.
Digital Assets To Outperform The Standard & Poors’ 500 In 10 Years?
As reported by CNBC, Morgan Creek called for a single bold investor to take on the bet against the industry. The wager will be called Buffet Net 2.0 and Morgan Creek is Betting that all prominent cryptocurrencies in its in-house index fund will outperform the Standard & Poors’ 500 within the next 10 years.
In the next ten years, if the prediction comes to pass and the Standard & Poors’ 500 are outperformed by the company’s index fund, the cryptocurrency branch of Morgan Creek will get a cheque of $1 million. If, however, the Standard & Poors’ 500 outperformes these digital assets, Morgan Creek will have to give whoever matches the bet $1 million. The money for the bet will not be removed from the company’s in-house fund but from the pockets of its partners.
Morgan Creek’s Anthony Pompliano, speaking about the bet said:
“This wager is a combination of our prediction for cryptocurrencies and our outlook of Standard & Poors’ 500. It is vital that we put everything, including traditional markets into perspective. However, we need to look at the competition these assets are facing. Even if cryptocurrencies are suffering at the moment, public equities aren’t doing any better.”
The anti-bank, pro-bitcoin proponent made reference to the current state of the tech industry. He talked about the fact that FANG companies suffered a significant loss that cost them almost all the 2018 gains within a few weeks.
Bitcoin (BTC) Price Today – BTC / USD
While the bet appears overwhelming, it isn’t a coming as a surprise because Pomp has always displayed his bullish sentiments for Bitcoin. To show that Morgan Creek is truly bullish about cryptocurrency, sources say that whoever wins the bet will have to donate the winnings to charity. It is not being done for the company’s gain.
Anthony Pompliano And Mark Yusko Bullish About Bitcoin
The news about the bet is reaching the industry just a week after Mark Yusko and Anthony Pompliano predicted a long-term bullish wave for Bitcoin and the industry as a whole. This was during an interview with CNBC. Both Morgan Creek founders said that they believe in the future of cryptocurrencies even if the short-term trend is bearish.
Yusko, on his part, said that he loves Bitcoin and he supports the cryptocurrency long-term. According to him, the recent sell-off in the market was as a result of artificial selling pressure that started from CME and CBOE. He also said that the price decline presents the perfect opportunity for cryptocurrency investors to buy and hold. According to him, within the next 10 years, BTC will cross its all time high and multiple its current value by 20x.
During the interview, Pomp agreed with Yusko noting that BTC is the most secure transaction settlement layer in the entire world. So, it will always have value. Keep in mind that BTC is currently down by over 11% against the USD at $3,430.78.