Aussie Makes $6.30m Bullish Bet on Bitcoin Against Buffett’s Berkshire
So many pundits have issued bullish forecasts on Bitcoin (BTC). However, none of them have taken chances so far by speculating in the options market.
But, an unidentified Australian trader with a bullish view of Bitcoin is placing a massive bet that the cryptocurrency will exceed the price of Berkshire Hathaway‘s stock by 2023.
The crypto expert has directed well known bookmaker Tom Waterhouse to bet A$8.5 million (~US $6.3 million) that the numero uno cryptocurrency’s price will top Berkshire Hathaway’s stock price by 2023. The stock of Berkshire Hathaway is presently trading at about $287,600. Therefore, the options trader is set to win A$1.2 billion (~US $888 million), if the price of Bitcoin crosses above $287,000.
Tom Waterhouse, who headed William Hill Australia previously, has introduced the crypto expert to a “large syndicate” to establish the bet.
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
Berkshire Hathaway was founded by Warren Buffett, the Oracle of Omaha, and Charlie Munger. Buffett and Munger, serving as President and Vice-president of the company, respectively, hate cryptocurrencies. Time and again they have expressed their dislike towards cryptocurrencies and Bitcoin in particular.
In April Buffett said “Buying Bitcoin is not investing”. A month later, during the annual meeting of Berkshire Hathaway, Buffet described Bitcoin as a non-productive asset, unlike land or stock of a company.
He further stated that Bitcoin has no intrinsic value. Buffett also predicted “bad ending” for Bitcoin. Munger, during the same annual meeting, stamped cryptocurrency trading as “dementia”. He also commented that cryptocurrency investing is “like somebody else is trading turds and you decide you can’t be left out”.
In 2013, Buffett first refused to invest in Bitcoin, which was trading at $130 at that time.
Despite the hostility shown towards crypto, BNSF Railway, a company owned by Buffett has already started moving towards the implementation of blockchain technology in its logistics business. The company has joined the Blockchain in Transport Alliance and is studying ways to use blockchain technology to establish new standards in fraud prevention, supply chain logistics and freight repair.
The company, headed by billionaire investor Warren Buffett, saw its stock surge from $58,000 in 2000, to $312,000 earlier this year.