Who Gets the Bigger Slice of the $1 Million Pie?

In a bold initiative, Kraken Exchange partnered with The Economist to challenge MBA students worldwide. With a million-dollar investment on the table, participants were tasked with a pressing question: How should they split a million dollars between Bitcoin and Ethereum, given they can’t touch it for five years? If only they could also ask for a piece of pizza while they were at it!

What Did Kraken’s CEO Have to Say?

Jesse Powell, Kraken’s CEO, knows how to grab a student’s attention—throw in the chance to devise a digital asset investment strategy! He said, “This competition is about learning digital assets and helping to settle a debate that’s hotter than college cafeteria coffee: Which digital asset takes the crown—Bitcoin or Ethereum?”

The Market Landscape: Bitcoin vs. Ethereum

With Bitcoin holding the heavyweight title of nearly ten times Ethereum’s market cap, it seems to have a solid edge. However, Ether’s price appreciation over the past year has made investors sit up and take notice—rising tenfold! Talk about a surprise upset! Professor Ferdinando Ametrano from Politecnico di Milano argues Bitcoin’s stability gives it a significant advantage. But it’s clear the students have their own ideas.

Investments Breakdown: Diverse Strategies Emerge

Thirteen teams from prestigious universities worldwide tackled the investment conundrum. The results? A delicious diversity of opinions:

• Johns Hopkins Carey Business School – Balanced 50/50
• Porto Business School – All in on Ether with 80% ETH
• Worcester Polytechnic Institute – Full throttle: 100% ETH
• Ivey Business School – Choosing caution, no recommendations
• BYU Marriott School – 78% BTC

And the list goes on! When it comes to blending Bitcoin and Ethereum investments, it’s like a party where everyone has a different favorite flavor of ice cream.

Where the Chips May Fall: Team Insights

Teams articulated their reasoning in detailed papers and videos. The Johns Hopkins team, with their Two-Step model, analyzed potential returns and risks. Their conclusion? Comparable returns led to a 50/50 investment strategy, recognizing Bitcoin’s dominance while acknowledging Ethereum’s promising growth potential.

Meanwhile, Worcester Polytechnic Institute saw a golden opportunity for Ethereum due to its partnerships with corporates and governments, envisioning Ethereum as the go-to blockchain operating system. On the other hand, Ivey Business School showed a cautious approach, focusing on the broader cryptocurrency ecosystem instead.

The Final Word: What Are Students Betting On?

As cryptocurrencies continue to stir debates at every roundtable discussion, the students’ surveys reflect a divided camp on the future of Bitcoin and Ethereum. With Bitcoin lauded for its maturity and Ethereum recognized for its innovative potential, the jury remains out. However, with volatility looming over all investments, these future business leaders might want to do their crypto homework carefully!