As any crypto observer knows, Bitcoin has been underperforming in recent months – and is currently 70% down in value from its late 2017-peak. However, an Australian cryptocurrency expert remains highly optimistic about Bitcoin, and is so convinced that it will soon top Warren Buffett’s Berkshire Hathaway’s share price, he’s bet millions on it.
36-year old Sydney native Tom Waterhouse is an Australian bookmaker and the current CEO of William Hill Australia. William Hill are by far the largest betting operation in the world, and Australia are one of the three biggest betting markets on the planet, so Mr. Waterhouse holds a position of some respect and authority. In other words, he is not in the habit of making up tall tales.
The Bet That Shook Buffet
This week, Waterhouse revealed that a well-known cryptocurrency expert (who has asked to remain anonymous) has placed a wager with William Hill Australia that by 2023, the price of a Bitcoin BTC will exceed the stock price of a Berkshire Hathaway share. This well-known expert would seem to be very confident about this event happening, because the bet he has placed is valued at $6.3 million US dollars. If his bet comes true, and if his prediction proves correct, he stands to take home $1.2 billion.
Berkshire Hathaway’s current share price is about $280,000, which is roughly 46-times the current value of Bitcoin, which has been struggling of late to stay above $6,000. On the face of it, this would seem like a crazy wager, and yet it symbolizes Australia’s enthusiasm for all things related to the blockchain.
Why The Beef With Buffet?
It would seem unlikely that the anonymous bettor hadn’t singled out Berkshire Hathaway because of its CEO Warren Buffet’s history of derogatory comments toward Bitcoin in particular and cryptocurrency in general. While crypto has had many high profile critics during its first decade of existence, none have been as scathing, nor come from a higher position of authority than those of Buffet, who has consistently been in the top-three richest men on the planet for decades.
His most recent comment – which came earlier this year, was that Bitcoin was “rat poison squared” – pretty much sums up the class and the quality of insult that Buffet – who admits he knows nothing about blockchain technology – comes up with.
Clearly Mister Anonymous Gambler has a beef with Buffet – probably more so with his partner Charley Munger, who said this year that trading in Bitcoin was like “trading in turds.” Yep, classy. And this from a pair of old fossils who also admit that they thought that Google and Amazon wouldn’t amount to anything, and that the internet itself was a passing fad.
No matter the outcome of this bet, it is highly unlikely that both Buffet – who is 87-years old, and Munger, who is 94, will both be alive to see it, in fact, there are probably great odds to be had on such an occurrence taking place.
Maybe William Hill Australia could take that bet?