The cryptocurrency skeptics have challenged themselves: the $ 1 million Crypto bet exceeds S & P 500

Morgan Creek Digital Assets issued a $ 1 million challenge that the fund's cryptocurrency index would outperform the S & P 500 over the next decade. Founded by Anthony Pompliano and other crypts, the challenge is the perfect opportunity for cryptocurrency certos to "put their money where their mouth is".

In a press release today, Morgan Creek Digital Assets (MDMA) has advertised a bet on Bitwise indexed fund cryptocurrencies, including Bitcoin and altcoin, outperformed the S & P 500, a weighted capitalization index of 500 of the largest publicly traded companies in the United States.

The bet is open to professional investors who "believe that cryptocurrencies are worthless" or simply think that "public shares would be a better investment in the next decade".

The bet is a direct challenge to many in the community who have predicted that Bitcoin and other cryptocurrencies are a Ponzi scheme, a scam or "go to scratch".

For example, the pessimist of Bitcoin Nouriel Roubini:

Now Bitcoin is again below $ 8K. It drops 60% from the December peak. You HODLers: feel free to jump over the cliff until your financial collapse …

– Nouriel Roubini (@Nouriel) March 15, 2018

O Agustin Carstens, general manager of the Bank for International Settlements, a bank for central banks, which he called Bitcoin:

"… the combination of a bubble, a Ponzi scheme and an environmental disaster", according to CNBC.

Opponents now have the opportunity to speak with their portfolios.

Details on the bottom

The fund would have a 75% exposure to the cryptocurrency market and would change every month by changing each currency market capitalization-To represent the changing proportions of the market.

The fund mainly includes Bitcoin and Ethereum, with minor participations in eight other altcoins. The exact percentages are detailed below:

For those interested in the convenience of a managed portfolio, the fund is also offered to investors accredited by the United States with a minimum investment of $ 50 thousand. Something to keep in mind: it is possible that this bet is a marketing stunt used to increase the interest in the cryptographic fund of the company.

Fund methodology

MDMA also included an in-depth methodology on how and why they chose the selected cryptocurrencies. Some of the most interesting criteria are listed below:

• Less than 30% of current issues held since the establishment of the protocol or related operational activities.

According to MDMA, this serves to prevent undue centralization that could "potentially threaten" the fundamental value of a decentralized network, excluding coins such as Ripple (XRP), Stellar Lumens (XLM) and TRON (TRX). Although Stellar Lumens (XLM) intends to distribute 95 percent of its properties, so far it has only given a small fraction.

• Negotiation on two or more exchanges, with no more than 90% of the combined trade volume of 30 days combined on a single trade.

This requirement exists to ensure that there is sufficient liquidity to buy and sell and to remove a point of bankruptcy in the event of a major exchange failure.

• Allows compressed air cold rooms, even offline wallet generation and signing of offline transactions.

This rule allows secure storage of any resource, mitigating losses from potential hacks.

Background on the buffet bet

The challenge is structured as a "buffet bet" 2.0, a nod to the $ 1 million Warren Buffet bet that S & P funds outperformed a selection of actively managed hedge funds. Warren Buffet won the bet by hand, with the S & P 500 index of 7.1 percent interest compounded each year, compared to 2.2 percent with the selection of hedge funds.

Since its inception, the S & P500 has achieved an average return of 10 percent annually from 1920 to 2016. If the dividends from these securities were reinvested, it would be substantially higher. The cryptocurrency can outperform the solid returns on the stock market is still uncertain.

In addition to the challenge, the press release did not mention any other details relating to the bet.

It seems that the bulls are willing to put their money where their mouths are, but as stated by the company, "… are there crypto-detractors willing to do the same?"