BTC critic from the NYU has rejected Bitcoin’s value offer in the form of a currency once again. Mr. Damodaran, a finance professor at NYU’s Stern School of Business, has reaffirmed his critique of Cryptocurrency.
The NYU professor reiterated his long-standing rejection of BTC as a currency in the 10th episode of the Moneycontrol Masterclass program. According to the professor, BTC’s limited use in micropayments contradicts assertions that Bitcoin is a feasible medium of exchange, further implying:
According to him, a currency should be used to purchase coffee, a house, a car. If we held these rules against BTC, it has failed as a currency.
The cryptocurrency’s sole reason to fame, according to the New York University’s professor nicknamed WallStreet’s “dean of valuation,” is the profits made by initial adopters. The professor continued that whenever he meets a BTC proponent, the person only seems to promote an idea that BTC is a good currency since the person has made a fortune from it.
The New York University professor previously provided similar variations of this anti-BTC rhetoric centered on Bitcoin’s inability to function as a legitimate method of payment. Even during 2017’s bull market, The NYU professor claimed that the market cap boom was not an appropriate criterion for determining BTC’s success.
However, the professor does recognize the high transaction fees and volatility of the cryptocurrency as the primary obstacles to BTC’s feasibility as a form of currency back in April. The New York University professor’s assessment, nevertheless, fails to compensate for the rising Bitcoin acceptance in the form of economic restrictions in several parts of the world.
The critic argued with the concept that Bitcoin is a good store of value against inflation, in addition to rejecting Bitcoin as a currency. As per the New York University’s professor, Bitcoin seems like a dangerous asset when the 2020 market turmoil was unfolding.
Furthermore, the professor failed to discuss that BTC ended the year with a 7x price hike compared to the last year’s March Black Thursday collapse.
Mr. Damodaran’s shift from condemning BTC as a legitimate currency to condemning it as a store of value appears to be a recurring pattern. The professor claimed in May that ETH has a greater chance of being a currency than Bitcoin.