Get trading recommendations and read the analysis on Hacked.com for only $ 39 a month.
An academic known as Wall Street's "Dean of Valuation" pointed out that bitcoin, although currency, needs to be widely used to justify its price surge.
Aswath Damodaran, professor of finance and evaluation at the Stern School of Business at New York University, spoke of the functionality of bitcoin as usable digital currency for daily transactions rather than as a stock of rewarding investors.
Bitcoin reached a new historical record of $ 6,200 less a week ago and is clearly in the limelight as a high-yield investor, earning more than 6 times its value at the beginning of l & # 39; year. For Damodaran, the discussion around Bitcoin that makes big gains in value should instead turn to its use as transactional money.
Speaking to CNBC ($), the academic said:
I think the best way for Bitcoin is to make it a digital currency, a currency that you and I can use to buy and sell products. If this happens, then I agree with the price.
In a blog post yesterday, Damodaran disagreed with the opinion of Jamie Dimon, CEO of JPMorgan Chase, who called Bitcoin a "fraud" and pointed out that Bitcoin was primarily a currency. Not an asset, a commodity or an object of collection.
I will argue that Bitcoin is not an asset, but a currency, and that as such, you can not invest in it or invest in it. You can only price and exchange it.
"Bitcoin is not an asset because it does not generate cash flow apart for those who hold it," he explained. "This is not a commodity because it is not a raw material that can be used to produce something useful." In the best case, the valuation expert sees the bitcoin become the world's digital currency or the 21st century bulb, in its worst case. Or, somewhere between "millennia gold" with implicit mistrust for central banks, governments and fiduciary currencies.
Damodaran also argued that bitcoin is not yet a good currency, not before it is more widely accepted for everyday use.
"At the moment, it's not a very good currency, I could not use it in transactions in much of the world," he added. "This is not a good currency because it is not a good way to trade and it's not a good store of value simply because it's too volatile." . "
"Would it be good money? Absolutely," he continued before saying:
A good currency is not something you boast about how much money you have earned. A good motto is something you use to make transactions. At the moment, the whole cryptocurrency discussion seems to be about the amount you can bet on the currency, not the quality of the currency.
Featured image from YouTube / L2inc.