Coin Vs. Stock: Morgan Creek Bets $1 million on crypto out-performing S&P 500
Morgan Creek Capital Management, a privately-owned investment manager is pegging the 10-year performance of cryptocurrencies and digital assets against the stock market in a $1 million bet, as reported by Bloomberg.
The Digital Asset Index Fund, a cryptocurrency index fund managed by Bitwise Asset Management and the premier stock market index, the S&P 500 index will go head-to-head in the Warren-Buffet style bet. This bet comes as a challenge from the asset manager to those who think cryptos are “worthless,” or those who side with equities as a better long-term investment.
Earlier this year, Warrant Buffet, the investment mogul, won his 10-year old bet based on the same premise. In 2008, Buffet placed a $1 million bet that the S&P 500 index fund would outperform the hedge funds, and he was proven right this year.
Bitwise’s index fund consists of 10 top virtual currencies, namely, Bitcoin [BTC], Ethereum [ETH], Bitcoin Cash [BCH], EOS [EOS], Litecoin [LTC], Monero [XMR], Zcash [ZEC], Dash [DASH], IOTA [MIOTA] and NEM [NEM]. Currently, all the aforementioned cryptos are experiencing double-digit falls.
Morgan Creek Digital founder and partner, Anthony Pompliano is confident that the cryptocurrency index could outperform the S&P index, especially the public equities, despite the severely bearish cryptocurrency market. He told CoinDesk, “It (cryptos) outperformed over the last 10 years and we believe that will not change moving forward for the next 10 years.”
Pompliano referenced a November post, titled, “Bitcoin’s fundamentals are strengthening despite price decline,” stating that the top crypto, which now dominates 55 percent of the market, will continue to grow into an asset class of its own. He shares this sentiment with other top virtual currencies as well.
Morgan Creek’s bet will commence next year on January 1, 2019 and will end in 2029, if anyone should take it up. Pompilano said the ones who take up this bet, “will believe strongly in public equities or be very bearish on cryptoassets.”
At press time, the cryptocurrency market has dipped by over $15 billion in the past 24 hours and over $100 billion since the beginning of November. According to CoinMarketCap, the current market cap is $108.5 billion, the lowest point since August 2017.
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