Aswath Damodaran, a finance professor at the NYU Stern School of Business, expressed his belief that bitcoin is a currency rather than an asset in a new blog post.
"Evaluating Dean" of Wall Street, says Damodaran in his article: "I do not believe crypto-currencies are or will become an asset class," or that they will change the "fundamental truths of risk". , investment and management. "
"Bitcoin is not an asset, but a currency, and as such, you can not value it or invest in it, you can only value it and exchange it. "
Bringing all investments into four categories – assets, commodities, currencies and collectibles – the financial expert has substantiated his statement by saying that bitcoin does not "generate cash flow" to be classified as an asset nor a "raw material" which would classify it as a commodity.
"The choice then becomes whether it is a currency or an object of collection," he said.
Notably, Damodaran disagreed with the recent comment by Jamie Dimon, CEO of JPMorgan Chase, that Bitcoin is a "fraud".
In July, Damodaran also argued that crypto-currencies quickly became a preferred alternative to gold for people who do not trust traditional fiduciary currency.
Aswath Damodaran Image via YouTube