Aswath Damodaran, a professor at New York University, said he thinks Ether (ETH) is a better commodity than Bitcoin (BTC).
Speaking to CNBC, the professor argued that Ethereum’s potential is stronger than Bitcoin in the future paradigm dominated by blockchain-based technology.
According to Damodaran, ETH will surpass BTC in terms of transactions on blockchain. The academic said Bitcoin is a speculative cryptocurrency and added:
“When all the Bitcoin bulls started talking to praise this currency, ‘Look how much money I’ve made with Bitcoin!’ The whole argument is that way. This is not a way of talking to convince to buy bitcoins. It gives me no clue for this entity. “
Considered as an emerging market, the decentralized finance area grew the most on the Ethereum network. According to DappRadar, the total asset locked in ETH-based DeFi protocols was over $ 65 billion at the time of this writing.
In early May, Uniswap, an ETH-based decentralized exchange, surpassed Bitcoin in terms of daily revenue.
This is not the first bitcoin criticism of Damodaran, as the NYU professor called BTC an “inefficient currency” in early May. In August 2017, Damodaran, referred to as Wall Street’s “valuation dean,” described Bitcoin as “a pricing game with no good ending.”
NYU finance professor called for a more nuanced crypto nomenclature that better captures the differences between existing cryptocurrencies. Damodaran thinks, “I think we need to start dividing the crypto space into cryptos trying to become a currency, cryptos trying to be collectibles – millennium gold – or actually commodity cryptos.”
As previously reported, the cryptocurrency market is in the midst of a massive downtrend, with Bitcoin losing more than 30 percent in the past eight days. Total market capitalization also fell dramatically over $ 800 billion in the same period.