Aswath Damodaran, professor of finance at New York University’s Stern School of Business, has reiterated his criticism of Bitcoin (BTC).
Appearing on episode 10 of the Moneycontrol Masterclass program, the NYU professor doubled down on his longstanding repudiation of Bitcoin as currency.
According to Damodaran, Bitcoin’s limited use in microtransactions flies in the face of claims that BTC is viable as a form of money, stating:
The NYU professor has previously offered similar variants of this anti-Bitcoin commentary revolving around BTC not being a viable form of currency.
Apart from dismissing Bitcoin as currency, Damodaran also disagreed with the notion that BTC is a hedge against inflation.
According to the NYU professor, BTC behaved like a risky stock during the market upheaval of March 2020.
Damodaran did not mention that Bitcoin closed out 2020 with a seven-fold price increase against the Black Thursday crash of March 2020.
The professor’s pivot from bashing Bitcoin as a currency to repudiating it as an asset class also seems to be an emerging theme. Back in May, Damodaran stated that Ether (ETH) stood a better chance of becoming a commodity than BTC.
