Aswath Damodaran, a New York University professor of finance and a notable Bitcoin antagonist has pooh poohed the idea of classing Bitcoin as a currency. During a financial class, the professor consolidated his stance against Bitcoin and holistically rejected the idea that it was another currency.
In Damodaran assessment, currencies are employed in the everyday lives of people to ensure that their needs are met. The professor said that since Bitcoin has not gotten to that all purpose status, it had woefully lost its lone currency race. The Bitcoin antagonist opined that the currency Clamour by most Bitcoin advocates is just based on the dividend they have garnered from it as its earliest investors.
Damodaran has previously taken this path of rejecting the proposition that Bitcoin was a currency. The bullish market of 2017 was when he declared this, stating then that market capitalization was not a standard parameter to ascertain how accomplished Bitcoin had become.
In April this year, Damodaran said that the mutable nature of Bitcoin coupled with its exorbitant transaction cost disqualified Bitcoin from being regarded as a means of exchange. The professor’s analysis however did not capture the widespread adoption of Bitcoin amid stringent financial regulations rife in different countries.
Aside the inability of Bitcoin to climb the currency ladder in Damodaran’s view, he also does not concur to the proposition that Bitcoin was the armour against inflation. The professor however failed to talk about the Black Thursday bearish market of March last year and how Bitcoin was not only unscathed but had tremendous increment in price that year. The professor has criticized Bitcoin on different levels. In May, he stated that rating Ether as a commodity was likelier than doing so for Bitcoin.
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