Cuban and Creative Planning CEO Peter Mallouk recently debated the performance of cryptocurrencies and stocks. Mallouk defends his position that stocks will yield higher returns in the long run than cryptocurrencies.
American entrepreneur and investor Mark Cuban believes that BTC and ETH will outperform the S&P 500 index within 10 years. For that reason, the owner of the NBA team, the Dallas Mavericks, made a bet with Creative Planning CEO Peter Mallouk. Both of them decided that the winner will get USD 1 million settled through a smart contract.
The executives started the debate when the CEO of Creative Planning participated in a thread where Cuban was discussing Dogecoin.
Cuban and Mallouk Choose the Stocks that They Will Compare Over the Next Ten Years
According to Mallouk, achieving growth when investing in a company is more likely than when investing in cryptocurrencies. He suggested comparing the performance of the S&P 500 stock index with that of any stocks that Cuban selected. At that moment, the latter placed a bet of USD 1 million on which will p
erform better over the next ten years.
Cuban said that he will make a second bet of USD 1 million if Mallouk agrees on that. He added that he will stay 50/50 with Netflix and Amazon shares while the CEO of Creative Planning stays with the S&P 500. The owner of the Dallas Mavericks highlighted that whichever achieves the highest increase in returns on the 10th anniversary will win.
Then Mallouk requested Cuban to move on to those things that they had disagreed on. For example, the investor had told him that “only a fool” would invest in 100 stocks. For that reason, the CEO of Creative Planning will take a 100 stock index or 100 stocks while Cuban chooses any other stocks. Mallouk said that he also felt good about this based on their market calls.
Cuban Proposes Using Smart Contracts to Make Both Bets
In the end, Cuban proposed placing the two bets through automated smart contracts. First, he will bet that the returns of Bitcoin or Ether will exceed those of the S&P 500 within 10 years. For the second bet, Cuban predicts that Netflix and Amazon stocks will outperform the S&P 500 collective.
Once Mallouk accepted both bets, Cuban promised to deposit DAI in a smart contract and do will yield farming on his USD 1 million. Both participants planned to donate their potential winnings to charity.
Ethereum’s Ability to Create Smart Contracts Makes Cuban Bet on It
In early April, Mark Cuban said that he is betting on Ethereum because of the blockchain’s ability to create smart contracts. He believes that they could be the basis for the future of the economy as they have promoted decentralized finance (DeFi) and non-fungible tokens (NFT).
The community knows that Cuban owns at least small amounts of Dogecoin in addition to Bitcoin and Ether. He only sees the latter two as a true investment, but he believes that DOGE is simply entertainment.
By Willmen Blanco