Back in 2014 the CEO of Civic, Vinny Lingham, made a bet with Brent Goldman, who is the director of engineering for Uber’s self driving program, that Bitcoin (BTC) would increase massively in value.
Specifically, Lingham said that he would buy a Bitcoin (BTC) from Goldman for $1,000 in 5 years. At the time the bet was placed Bitcoin (BTC) was in the depths of a bear market after the collapse of Mt. Gox and the Silk Road bust, and Bitcoin (BTC) was worth just $200.
Although this bet may seem like a no brainer now, back then there was speculation that Bitcoin (BTC) would never recover from the bear market and would end up being worthless, either due to lack of adoption or due to regulations that would make Bitcoin (BTC) illegal. Therefore, this bet was a risk and was quite courageous, but in the end it certainly paid off.
Indeed, at the time the bet was settled on April 28 Bitcoin (BTC) was worth $7,800, so Lingham made an instant profit of $6,800. Further, the price of Bitcoin (BTC) has already increased to $9,000.
Just like back in 2014, there is plenty of speculation that Bitcoin (BTC) will be worth less than it is now in the future, or at the least will stay in its current price range long term, whereas other people think Bitcoin (BTC) will rise above $100,000.
So the question is, would you place a bet today that you would buy Bitcoin (BTC) for 5X its current value in 5 years, which is $45,000? Most people probably would not place that bet, although the stock to flow model does forecast Bitcoin (BTC) to hit $288,000 well before 5 years from now.