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Aswath Damodaran, professor of finance at New York College’s Stern Faculty of Enterprise, has reiterated his criticism of Bitcoin (BTC).

Showing on episode 10 of the Moneycontrol Masterclass program, the NYU professor doubled down on his longstanding repudiation of Bitcoin as forex.

In accordance with Damodaran, Bitcoin’s restricted use in microtransactions flies within the face of claims that BTC is viable as a type of cash, stating:

“A very good forex, for my part, is one which’s used to purchase espresso, purchase your home, purchase a automotive, and on that rely, Bitcoin has failed, and never simply failed, it is failed miserably.”

For the NYU professor dubbed Wall Avenue’s “dean of valuation,” Bitcoin’s solely declare to fame is within the returns earned by early traders. “After I run into Bitcoin lovers, they appear to push this notion that Bitcoin is a good forex as a result of they’ve made some huge cash on it,” Damodaran stated.

The NYU professor has beforehand provided related variants of this anti-Bitcoin commentary revolving round BTC not being a viable type of forex. In the course of the bull market run of 2017, Damodaran argued that market capitalization development was not a suitable metric to find out Bitcoin’s success.

Again in April, Damodaran recognized volatility and excessive transaction prices as major impediments to Bitcoin’s viability as a medium of change. The NYU professor’s critique doesn’t, nevertheless, account for rising BTC adoption within the face of economic censorship in lots of locations throughout the globe.

Associated: Ether is a better commodity than Bitcoin, says NYU Professor

Other than dismissing Bitcoin as forex, Damodaran additionally disagreed with the notion that BTC is a hedge in opposition to inflation. In accordance with the NYU professor, BTC behaved like a dangerous inventory throughout the market upheaval of March 2020.

Damodaran didn’t point out that Bitcoin closed out 2020 with a seven-fold value improve in opposition to the Black Thursday crash of March 2020.

The professor’s pivot from bashing Bitcoin as a forex to repudiating it as an asset class additionally appears to be an rising theme. Again in Could, Damodaran said that Ether (ETH) stood a better chance of becoming a commodity than BTC.