Announced by leading Australian bookmaker Tom Waterhouse, the bet outlines a prediction that the value of one single Bitcoin will exceed the price of one share of Bitcoin opponent Warren Buffet’s Berkshire Hathaway, which currently sits at around $280,000.
One share of Berkshire Hathaway currently sits at around $280,000, and if the bet lands, the bullish trader would earn more than $884 million ($1.2 billion AUD).
The legendary billionaire investor recently said Bitcoin is “probably rat poison squared” and has said the crypto market in general will come to a bad ending. His first decision to avoid buying Bitcoin was back in 2013, when one BTC cost about $130.Despite his public disdain for crypto, Buffett’s empire has shown interest in blockchain. BNSF Railway, which is part of Berkshire Hathaway, is part of the Blockchain in Transport Alliance. The group is exploring ways to use the blockchain to create new standards in supply chain logistics, freight repair and fraud prevention.
This bet isn’t the first to be made against Berkshire Hathaway concerning BTC. In 2015, the owner of Bitbet placed a 1,000 BTC bet not too dissimilar from the one made by this mystery investor. However, the 2015 bet turned out to be a dud, as the Bitbet chief hedged against his wager to the chagrin of the crypto community on Reddit.
While the gambit appears considerable, it isn’t alone in the collection of bold Bitcoin predictions. In July 2017, John McAfee, the eccentric internet security expert turned crypto loudmouth, bet his manhood that BTC would reach $500,000 by 2020. Soon after the bet, many questioned his sanity and McAfee responded by upping the ante by increasing the bet to $1 million by 2020.
BTC is currently trading at about $6,200. Thus, BTC would have to grow by a staggering 4,416 percent to reach such a milestone. The all-time high of the top-ranked cryptocurrency, achieved in mid-December 2017, stands at $19,500. For the bet to be successful, BTC would have to go on a massive bull run.