Aswath Damodaran, Professor of Finance at the Stern School of Business at New York University, Strongly believes that Ethereum (ETH) has a greater possibility of becoming a commodity than Bitcoin (BTC).
Ether (ETH) is a cryptocurrency that runs on the Ethereum blockchain. It is currently just one step behind Bitcoin (BTC) in terms of market cap. ETH is often viewed as silver, while BTC is observed as gold in the world of cryptocurrency.
According to Prof. Damodaran, ETH has a stronger upside story than bitcoin does. Moreover, ETH will be a better lubricant of those blockchain transactions in the distant future.
Prof. Damodaran, longtime critic of the cryptocurrency, said bitcoin lacks an “endgame” and called it a “purely speculative game” and further added that
All that bitcoin bulls seem to talk about, their biggest sales pitch for bitcoin is: ‘Look at how much money I’ve made on bitcoin.’ That’s it, that’s the end of the sales pitch,” he said. “That’s not a sales pitch. That tells me nothing about the substance here.
Further adding, Prof. Damodaran believes that we need to start to separate the crypto space into those cryptos trying to be currencies, those cryptos that are trying to be collectables — millennial gold — and those cryptos that are commodities.
The professor’s judgments came after a wreck in cryptocurrency values on Wednesday when the flagship cryptocurrency dropped to more than three-month lows sinking to about $30,000 at one point. Elon Musks tweet was also a key reason for BTC decline.
However, the critics from the finance prof. is not new, earlier in 2017, he described Bitcoin as a “pricing game with no good ending.” Then again, in 2018, he called BTC “failing currency and speculative investment.”
The crypto market is in a massive downtrend, with Bitcoin plunging more than 30% in the recent week. The entire market capitalization has likewise taken a colossal gouge, losing more than $800 billion in the same period.
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