NYU Professor Says Bitcoin Has Failed Miserably as a Currency

Professor of Finance at the New York University (NYU) Stern School of Business, Aswath Damodaran, has again criticized bitcoin, stating that the flagship cryptocurrency has failed miserably to function as a currency.

Prof. Damodaran Says Bitcoin is Limited as a Currency

Prof. Damodaran made the statement while appearing on episode 10 of the Moneycontrol Masterclass. According to the professor, the only selling point for bitcoin that proponents make is the returns made from their BTC investment. 

Prof Damodaran, popularly known as the “Dean of Valuation”, expressed similar sentiment back in May, stating that bitcoin seemed to have no substance.

If bitcoin is a good currency, my question is, why aren’t more people using it in transactions. So when I run into bitcoin enthusiasts, they seem to push this notion that bitcoin is a great currency because they’ve made a lot of money on it. That’s not my measure of a good currency.”

Damodaran buttressed his point, saying:

A good currency, in my view, is one that used to buy coffee, buy your house, buy a car, and on that count, bitcoin has failed, and not just failed, it’s failed miserably.”

Meanwhile, as opposed to the NYU Professor’s criticism of bitcoin’s limited use, more institutions and companies have enabled bitcoin payments for various goods and services. As reported by BTCManager earlier in June, Progressive Care, a US personalized healthcare and technology firm, announced that people could pay for rapid COVID-19 tests with bitcoin. 

Another US company Sheetz revealed that it would start to add BTC and other cryptos as a payment option for goods in summer 2021. Other sectors accepting bitcoin payment include car dealerships, hospitality, real estate, among others

Bitcoin Not An Asset Class

Prof. Damodaran also rejected bitcoin as an asset class, adding that BTC was not a good hedge because it was risky and volatile. The NYU professor earlier pitched ether above BTC, stating that the second largest crypto asset had a better chance of becoming a commodity compared to bitcoin. 

However, citizens of countries with troubled economies like Argentina, Columbia, and Venezuela, have adopted bitcoin and other crypto assets to hedge against inflation. 

Meanwhile, a recent Chainalysis data, as reported by BTCManager revealed that more Indians were moving away from gold to cryptocurrency, with close to $40 billion investment in crypto made in the past year.

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Jim Cramer Says it is Still Not Too Late to Invest in Bitcoin as BTC Price Surges Toward $20,000

One of the things that are frequently being heard is the question, “is it too late to buy Bitcoin”? This question normally takes different forms such as “I wish I got into Bitcoin sooner.”

Bitcoin’s price has exploded recently, hitting above $19,000, taking its market capitalization to an all-time high. While investors are wondering whether it is too late to jump on the Bitcoin bandwagon, Jim Cramer, TV personality on CNBC’s Mad Money and long-time investor has addressed these questions. In his Twitter post On Nov. 24, Cramer stated that he thinks that it is not too late to invest in Bitcoin. He said:

“It is not too late for Bitcoin… great alternative to gold… Which I have always believed in.”

Although Cramer has long talked about cryptocurrencies as part of his famous “Mad Money” show on CNBC media outlets and his Twitter account, he previously had not been positive about crypto assets. He was a Bitcoin skeptic during the historic 2017 bull run. However, he recently changed the tune and now believes in the future of the leading cryptocurrency.

The Mad Money host turned bullish on cryptocurrency in an interview with Anthony Pompliano on Sept. 15 saying that he has realized that Bitcoin is a good hedge against inflation and further mentioned that his kids can understand the digital money. Cramer said in Pompliano’s podcast:

“My kids, when they get my inheritance, won’t feel comfortable with gold and will feel comfortable with crypto.”

Cramer thinks that a major shift in safe-haven assets is on its way and believes that Bitcoin and cryptocurrencies would be the next choice of the next generation. He sees a changing generational mindset on storing wealth from traditional stored like real estates and gold to Bitcoin and cryptocurrencies.

He admitted that maybe he was struck in the past with some of his previous assessments and gold wealth storage leveraging.  He talked about upgrading from gold to Bitcoin.

Cramer is one of several prominent Wall Street bulls that have embraced Bitcoin as a safe haven asset. US billionaire Stanley Druckenmiller recently changed course on Bitcoin, stating that the cryptocurrency has the potential to store value for the future generation. Druckenmiller previously invested heavily in gold as a safe haven asset to protect himself from fiat exposures. However, he recently announced that he bought some Bitcoins and admitted that the returns are quite better than gold.

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