An anonymous Australian cryptocurrency expert is trying to place a bet of AUD 8.5 million (USD 6.28 million) that Bitcoin’s price will exceed the price for a share of Berkshire Hathaway’s stock by 2023, and if won, the bettor wants AUD 1.2 billion (USD 887 million).
Tom Waterhouse, the CEO of major London-based gambling bookmaker William Hill, has placed the cryptocurrency expert in contact with a large syndicate to make the bet official. This bet is particularly interesting because Berkshire Hathaway’s CEO Warren Buffett has been extremely critical towards Bitcoin.
Big Bet: Well known Crypto expert has just requested a bet of $8.5m AUD to win $1.2bn that a Bitcoin will exceed the price of a Berkshire Hathaway share (c.$280k) by 2023. Have put him in touch with large syndicate – hope he can get set! pic.twitter.com/C20AHzH2k9
— Tom Waterhouse (@tomwaterhouse) July 11, 2018
Warren Buffett has compared trading Bitcoin to trading harvested baby brains, among other undesirable comparisons. Further, he says Bitcoin has no intrinsic value and is not really an investment.
As of this writing on 13 July 2018, each share of Berkshire Hathaway, listed as BRK.A on the New York Stock Exchange, costs USD 288,400 with a market cap of USD 471.32 billion, which suggests a total of 1.634 million shares. Currently, the price of Bitcoin is near USD 6,300 with a market cap of USD 108 billion. If Bitcoin were to exceed Berkshire Hathaway stock at this time, it would need a market cap near USD 5 trillion.
This bet is made even harder by the fact that Berkshire Hathaway stock has steadily been increasing for decades. To give an idea of how fast the stock is going up, in 2010 BRK.A was about USD 100,000. Extrapolating five years from now, BRK.A could easily be as high as USD 400,000 and, combined with Bitcoin’s increasing supply from mining, this would necessitate a Bitcoin market cap around USD 7-8 trillion to win the bet. This is roughly the total value of all the fiat banknotes and coins in the world.
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