According to CNBC, Morgan Creek Digital, co-founded by Bitcoin maximalist Anthony Pompliano, has issued 'The Digital Asset' challenge, where they bet $1 million that these digital assets will outperform the S&P 500 over the next 10 years starting January 1, 2019.
The crypto investing firm calls the challenge 'Buffett Bet 2.0'.
Morgan Creek Digital is referring to the famous Warren Buffett bet, which began in 2008 when the billionaire investor bet $1 million that investing in a S&P 500 index fund would see a greater result than investing in hedge funds. A bet that Buffet won earlier this year.
Unilke Buffet, Morgan Creek Digital is now betting against the S&P 500.
They are inviting any investor who thinks the S&P 500 will produce better returns than their index fund, which contains bitcoin, ethereum, bitcoin cash, EOS, litecoin, monero, zcash, dash, iota and NEM, to take the other side of the bet.
Bitcoin maximalist and co-founder of Morgan Creek Digital Assets, Anthony Pompliano, said that whoever takes on the bet will likely be someone who has the same views on crypto as Warren Buffett has.
'It’ll be either someone who is bullish on the S&P 500, or someone who thinks cryptocurrencies are worthless or overvalued.'
'This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities', Pompliano told 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.'
Attention crypto critics....time to put skin in the game :)— Pomp 🌪 (@APompliano) December 6, 2018
Morgan Creek Digital believes the Digital Asset Index Fund will outperform the S&P 500 over the next 10 years.
$1,000,000 on the line.
Who will take the other side??https://t.co/10sQt2o2Ce
Both Pompliano and his co-founder Mark Yusko, agreed to personally fund their side of the $1 million bet and said they would not be relying on money from the fund and indicated that the proceeds of the bet would be donated to charity.
Pompliano's $1 million bet was well received amongst his 176K Twitter followers.
However, some fear he might lose his shirt on this bet.
This could seriously blow up in your face my friend. What if Buffet takes the other side?! Did you ever think that Bitcoin could go down 50% in 1 day?...prepare for it...😀— Nico Santini, CFA (@nsantini99) December 6, 2018
What is the S&P 500?
In short: The S&P 500 is an index that's compiled of the 500 biggest stocks there are in the market place. People use it as a measure of how well the stock market is doing in general.