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Morgan Creek Bullish On Crypto, Issue $ 1M "Buffett Bet 2.0"
Morgan Creek Capital, an investment management giant, recently saw its cryptocentric branch make an extremely bullish bet on Bitcoin (BTC) and its altcoin brothers. More specifically, according to a report by CNBC, Morgan Creek Digital, led by Anthony "Pomp" Pompliano, asked a single investor to make a heavy bet.
The bet, which has been called colloquially "Buffet Bet 2.0", sees Morgan Creek declare that its in-house cryptanalyze fund, which includes all major cryptographic assets, except for Stellar Lumens (XLM) and XRP, will surpass the Standard & Poors' 500 over the next 10 years.
If the crypto-centric index exceeds the S & P 500 index, Morgan Creek's cryptic branch expects a $ 1 million check to make it. On the other hand, if the stock market suffers a monumental run, the US investment consortium will pay $ 1 million to its opponent. This "Buffet Bet 2.0", for those who are not aware, is a clear reference to Warren Buffet's notorious ante, in which the multimillionaire claimed that a group of hedge funds would have passed the S & P.
Speaking of the importance of this bet, which is more serious than it may seem initially, Pompliano, co-founder of the crypto group, said:
This [bet] it is a combination of our perspectives not only for the positive side of cryptocurrencies, but also for the prospects for public stocks.
Pomp, known for his anti-bank rhetoric, pro-crypto, incessantly post on Twitter, then added that while the bet may indicate that Morgan Creek is "simply bullish on crypto", it is important to put everything, even the traditional markets, in perspective. "But it is necessary to look at what resource we are going against, the cryptographic defender has reflected, before adding," public actions are not exactly at their all time highs ".
In particular, the former employee of Snapchat and Facebook drew attention to the uncertain technology industry, in particular the losses suffered by the FANG companies, which lost all the gains of 2018 in a few weeks.
The Morgan Creek pompillon and Yusko Laud's bitcoin
In a testament of Morgan Creek's love for cryptocurrencies, the $ 1 million that comes up for grabs comes from the pockets of the company's partners, instead of the internal fund. In addition, the unspoken terms of the bet stipulate that the winner will donate the winnings to charity, making it clear that Morgan Creek truly believes in cryptographic resources for their fundamentals rather than their ability to gain value in the long run.
This recent development, which presents itself in a sad BTC crisis, arrives a few weeks after Pompliano and Mark Yusko, this last founder of Morgan Creek, have both taken to separate segments CNBC to praise Bitcoin and other cryptocurrencies.
As reported by Ethereum World News earlier, Yusko, a major American investor, told CNBC Fast Money that he loves long-term bitcoin, adding that the recent sell-off was catalyzed by the artificial sales pressure generated by the BTC vehicle of CBOE and CME. With this in mind, the founder of Morgan Creek added that it could now be an optimal time for investors to buy cryptocurrencies.
Not only does it expect BTC to review its historical highs, but Yusko added that cryptocurrencies, with their asymmetric risk profile, could see a 20x + rally in the next decade.
Pompliano, a clear supporter of cryptocurrency, a bastion of industry and a colleague of Yusko, also took part in Bitcoin in the CNBC Squawk Box. Pomp noted that Bitcoin is the most secure transaction transaction level in the world, so the value in BTC will always exist.
Title Image Courtesy of Jason Briscoe on Unsplash
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