A scholar who is also known as Wall Street’s “dean of valuation” has emphasized that Bitcoin as a digital currency needs to be a worldwide item for justification to be made to its increasing price.
A professor of corporate finance and valuation at the New York University’s Stern School of Business, AswathDamodaran, has talked about the functionality of Bitcoin as a cryptocurrency that is fit for a daily means of transacting instead of being a store that rewards investors with value who bet on the digital currency.
In less than a week ago, the value of Bitcoin rose to a new all-time high of $6,200 and the currency is currently on top of the ladder as it is an asset that delivers a high-return to its investors. The currency has however earned over 6 times its initial value in the long run. According to Damodaran’s perspective on the digital currency, every matter relating to the coins in making it a big gun should be inclined towards its usage as a currency used for transacting instead.
In an interview with the CNBC, the scholar stated that: “I think the better path for Bitcoin is to actually make it a digital currency, a currency that you and I can take on our travels and use actually to buy stuff and sell stuff. If that happens, then I am ok with the pricing.”
According to a blog post on the 24th of October, Damodaran was in a state of opposition with the CEO of JPMorgan Chase, Jamie Dimon for claiming that Bitcoin is a fraud and emphasized that Bitcoin is only a digital currency and not a commodity, a collectible or an asset.
In his argument, Damodaran claimed that: “Bitcoin is not an asset, but a currency, and as such, you cannot value or invest in it.”