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Dean of NYU Evaluations & # 039; s & # 039; Said Bitcoin is a currency, not an asset

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. "

He continued:

"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

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