Bitcoin Is The Subject Of A $1 Million Dollar Bet Between Nouriel Roubini And Anthony Pompliano
Nouriel Roubini And Anthony Pompliano Trading Jabs Again
Nouriel Roubini, better known as Dr. Doom, has been challenged to bet against the cryptocurrency by Anthony Pompliano. Nouriel, an economist who shot to fame after his predictions about the American economy in 2006 which precipitated in the largest global financial meltdown in generations, has been actively predicting the end of cryptos. Anthony, a noted crypto writer and investor, did not take kindly to this.
After the crash last month, cryptocurrencies have stabilized this week. While recovery is slow, Anthony has been bold in predicting that cryptos will outperform S&P500 index within 10 years, and he has bet $1 million on this prediction. After Nouriel's harsh words he was invited to bet against the performance.
In a war of words, the opening salvos were shot by Nouriel when he said he expected many cryptos and blockchain ventures to go bust. He then went on to say that
“They had no goods, services, products, software, apps. They stole the money & run.” Going on, he tweeted that the ongoing cryptocurrency meltdown will endure as it is just a “pile of baloney manure nonsense.” This prompted a reply from Anothy who asked: “You in to take the other side of this bet if you think crypto is going to zero?”
While this was going on, Mark Yusko of Morgan Creek, also jumped in and asked him to take on the “Buffet Bet 2.0” if he was so sure about the eventual demise of the cryptocurrencies. In retaliation to this, Nouriel raised questions about the returns on investment, the time period in question and other previous predictions made.
The wager being alluded to is the one famously bet by American business and investor magnate, Warren Buffet. At the start of the decade, Mr. Buffet had famously predicted a shift in the markets. He had bet $1 million that the S&P, an index fund, would end up outperforming five top actively managed hedge funds. Last year those predictions came true and Buffet won that bet.
Now Anthony is doing much the same thing with his prediction and he has invited the Twitterati who believe otherwise, to get on the other side of the bet. Nouriel, with his wealth of knowledge in classical economics, has repeatedly criticized blockchains, but after raising questions, has stopped short of accepting the challenge.
It is true that the prices of all cryptos have tumbled and the snail pace of recovery is not ideal, either. However, as with any nascent industry that doesn't even have proper guidelines, these growing pains are to be expected. skepticism should never be shunned, indeed it is to be welcomed.
Yet, the whole driving force behind this movement stemmed from apparent failures in the traditional economic models. Thus to label it all a sham and consign the effort to the backwaters of failure, is doing it a grave injustice. If that is untrue, as someone goaded, Nouriel should put his money where his mouth is; and passionately tweeted
“Roubini would be the perfect candidate to accept the bet, but we all know he’s too cowardly. Bark but no bite.”