Bitcoin has failed miserably as currency, says NYU’s ‘dean of valuation’
Bitcoin, the cryptocurrency that’s been hailed as the future of money, has failed miserably as a currency, says NYU’s ‘dean of valuation’ https://t.co/jTecIhDcZ1 — darknotetalk (@darknetnews) August 2, 2018
This week, a professor at New York University’s Stern School of Business reportedly delivered a speech at a “Bitcoin & Blockchain Technology Forum” in which he said “Bitcoin has failed miserably as a currency.”
Bitcoin has failed miserably as currency. That’s the opinion of NYU’s “dean of valuation”, and his name is Christopher Whalen. He says that Bitcoin – which boasts an impressive market cap of around $360bn – is not secure, cannot scale and has a high level of volatility. At the same time, he throws a bit of shade on Ethereum, the second largest cryptocurrency by market cap, claiming that it has failed to innovate and is destined for the same fate.. Read more about why is cryptocurrency valuable and let us know what you think.
Aswat Damodaran, a professor of finance at New York University’s Stern School of Business, has again criticized bitcoin (BTC).
In the 10th. In the 10th episode of Moneycontrol Masterclass, the NYU professor reaffirmed his longstanding opposition to bitcoin as a currency.
According to Damodaran, the limited use of bitcoin in microtransactions contradicts claims about bitcoin’s viability as a form of money:
A good currency, in my opinion, is one that allows you to buy coffee, a house, a car, and in that regard bitcoin has failed, and not just failed, but failed catastrophically.
For the New York University professor, whom the press has called the dean of Wall Street, bitcoin’s only claim to fame is the profits early investors have made. When I meet bitcoin enthusiasts, they seem to promote the idea that bitcoin is a great currency because they’ve made a lot of money with it, Damodaran said.
A New York University professor once made similar anti-Bitcoin comments, suggesting that BTC is not a viable currency. During the rise of the bull market in 2017, Damodaran argued that market cap growth is not an appropriate metric to determine bitcoin’s success.
In April, Damodaran cited volatility and high transaction costs as major obstacles to bitcoin’s viability as a medium of exchange. However, the New York University professor’s criticism does not explain the growing acceptance of BTC in the face of financial censorship in many parts of the world.
Related: Ether is a better commodity than bitcoin, according to a New York University professor.
Damodaran not only rejects bitcoin as a currency, but also disagrees with the idea that bitcoin is an inflation hedge. According to the NYT professor, BTC behaved like a risky stock during the market turmoil in March 2020.
Damodaran forgot to mention that bitcoin 2020 ended with a seven-fold price increase from the Black Thursday collapse in March 2020.
The professor’s shift from condemning bitcoin as a currency to denying bitcoin as an asset class also seems to be a new theme. In May, Damodaran said Ether (ETH) would likely become a commodity before BTC.
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