The American billionaire entrepreneur and television personality, Mark Cuban, has waged a bet with Creative Planning’s founder Peter Mallouk over the performance of cryptocurrencies versus the S&P 500. Cuban said on Twitter that the two should put $1 million into a stablecoin-based smart contract, in order to place a bet over the return performance of either ethereum or bitcoin in ten years against the Standard and Poor’s 500 index.
Mark Cuban Backs His Statements With a $1 Million Bet With Peter Mallouk
One of the investors on the ABC reality television series Shark Tank, Mark Cuban has been talking about cryptocurrencies a lot lately, and recently the billionaire told Ellen Degeneres about the potential of dogecoin (DOGE). Being the owner of the National Basketball Association’s (NBA) Dallas Mavericks, Cuban now has the Mavs accepting digital currencies for goods and services.
Just recently, however, Peter Mallouk the founder of Creative Planning, a financial management group, said that people listening to Cuban’s dogecoin tweets are not too intelligent.
“So many people are going to lose so much money listening to this. Straight out of Dumb and Dumber,” Mallouk stressed in his tweet. “If you buy a hundred stocks, odds are most go up. If you buy a hundred cryptocurrencies, most will go to zero. Big difference,” the Creative Planning founder added.
Cuban then replied to Mallouk’s tweet saying:
Only a fool would buy 100 stocks or 100 crypto assets. But let me ask a question. What rights do you have as a shareholder in any public company stock you have bought?
‘Only a Fool Would Invest in 100 Stocks’
From this point on, the Twitter conversation started turning into a friendly wager. “How about this,” Cuban wrote to Mallouk.
“We set up an ETH smart contract. You put in $1m in a stablecoin. I put up $1m in a stablecoin. We write the contract to pay you if the increase in the S&P 500 is higher at the end date than the increase in YOUR choice of BTC or ETH. You can pick the custodian,” Cuban further remarked.
The conversation seemed to have invoked a bet and Mallouk seemed interested in participating.
“The probability of a diversified portfolio beating someone picking a handful of stocks is very high,” Mallouk said, trying to convince Cuban. “Only a fool would bet on a few stocks. Over the next 10 years, I’ll take the SP 500 return against any group of stocks you want to pick and feel very good about it. I’m in on putting our money behind the debate. Mark Cuban you can choose the amount and proceeds go to charity of choice of the winner. I’ll take the SP500. You can pick and trade any stocks any time,” Mallouk emphasized.
After Cuban tweeted about leveraging a stablecoin-based smart contract held by a custodian, Mallouk again said he was interested. “This is interesting. This started with you promoting Doge. I’ll take the S&P 500 and you can take Doge. Loser of 10-year return donates $1m to winners charity. But, if you aren’t confident Doge will prevail,” Mallouk said.
“Then we can move onto the next thing we disagreed on,” the Creative Planning founder added. “You mentioned ‘only a fool’ would invest in 100 stocks. I’ll take a 100 stock index or 100 stocks and you can pick whatever stocks you want. I feel pretty good about this too based on your market calls.”
What do you think about Mark Cuban’s wager with Creative Planning’s founder Peter Mallouk? Do you think this bet will transpire? Let us know what you think about this subject in the comments section below.