[ad_1]
Eric Wall, chief investment officer of crypto hedge fund Arcane Assets, has offered a $ 1 million bet that the Bitcoin stock-to-flow model will be proven wrong before 2025.
In a tweet on November 12 to its 32,700 subscribers, Wall posed the terms of the bet, offering to pay $ 1 million to anyone who accepts their bet that the stock-to-flow model, or S2F, will be “broken” in less than five years. The IOC said the definition of “broken” is if the price of Bitcoin (BTC) has not “even reached 50% of its target range”.
Although he was tagged in the S2F PlanB model creator (@ 100trillionUSD), he later added, “This bet is not just for @ 100trillionUSD. If anyone else has the money to lock up, I’ll take you instead. “
Not sure? I bet $ 1,000,000 the S2FX model will be broken in less than 5 years.
This is not a joke. I’m prepared to turn this money over to a third party that we both trust, and so should you.
I define “broken” = “it will not even have reached 50% of its target range”. https://t.co/vmDO5UkQoO
– Eric Wall (@ercwl) November 11, 2020
PlanB said its S2F model sees a bright future for Bitcoin due to the continued reduction in supply, with the analyst estimating (in iterations of the model) that the price of BTC will reach between $ 100,000 and $ 288,000. here December 2021. However, some in the crypto community do not see the popular model as a reliable indicator of Bitcoin’s long-term price action.
Another crypto hedge fund figure decided to jump into the action and offer a bigger payout to anyone who does. Ari Paul, CIO at BlockTower Capital, declared on Twitter that he would give odds of 3: 1 on the same bet against the S2F model, potentially paying $ 3 million for a bet of $ 1 million. However, Paul did not seem so caught up in the spirit of the bet.
“The reason I’m willing to offer this bet without even having to think about the accuracy of S2FX is that it is a simple arbitrage,” said Paul. “Buy BTC, short S2FX at 3: 1, can’t lose.”
Although Paul suggests that he matched the bet as a joke given his belief “no one was going to bet [Wall] $ 1 million on this or even $ 100,000, ”neither is likely to waste much time no matter what happens to the price of Bitcoin.
If the bet is accepted and the S2F model fails, they will each receive $ 1 million. However, if the pricing model turns out to be correct or even underestimates Bitcoin’s future growth, then they will have a lot of money to pay because the crypto asset would have reached an astronomical value.
“I agree to lose in this case,” said Wall.
[ad_2]
Source link