It is now outdated to just promise to swallow your views if a bitcoin price bet does not win- presently the new trend is betting millions in cold, hard cash.
Probably provoked by Warren Buffett’s continuous criticism of bitcoin, an unknown crypto bull in Australia is betting millions of dollars that by 2023, the bitcoin price will surpass the share price of the Warren Buffett-headed investing group, Berkshire Hathaway.
According to the chief executive officer of bookmaker William Hill Australia, Tom Waterhouse, an unknown customer made this AUD$8.5 million believing that bitcoin will be worth more than the price of Berkshire Hathaway Class A shares in less than ten years.
Currently, at the market exchange rates, that is approximately a bet of US $6.28 million with likely winnings of US $890 million. Presently, the market price of the NYSE-listed Class A shares of Berkshire Hathaway is more than US$288,000, implying that bitcoin needs to go higher more than 40 times in the coming years.
Buffett’s anti-bitcoin decision has been well recorded. Back in April, the Oracle of Omaha compared buying bitcoin to gambling given that it has no returns besides the expectation that it could be offloaded at a higher price in future.
“If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more,” said Buffett.
Prior to the time bitcoin was about to reach its peak in 2017, Buffett warned that bitcoin was a during a Q&A session with business students. He made a similar statement during a television interview earlier in January this year. Since December 2014, when the dominant cryptocurrency was trading at about $US320, he warned people not to invest in bitcoin.
Yet, different from the past, the cryptosphere is fighting back. Two months ago following the billionaire investor’s classification of bitcoin as “rat poison squared” during the annual shareholder meeting of Berkshire Hathaway, cloud mining giant Genesis Mining created billboards with the caption: ‘Warren: You said you were wrong about Google and Amazon. Maybe you’re wrong about bitcoin?’ near the billionaire’s offices in Omaha, Nebraska.
This was in relation to the fact that Buffett had missed the opportunity to invest in the two tech giants early out of doubt and hence missed out on huge profits that the two firms went on to make.