Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.New York University’s “Dean of Valuation” said that one cannot accurately value bitcoin and other cryptocurrencies.
‘Dean of Valuation’ Says Bitcoin Can’t Be Valued
Aswath Damodaran, a professor at NYU’s Stern School of Business, made this claim in response to recent comments from investing icon Warren Buffet, who stated his belief that bitcoin and other cryptocurrencies “will come to a bad ending.”
Accusing Buffet of painting cryptoassets with a broad brush, Damodaran stated:
“I don’t think you can write off cryptocurrencies altogether,” he said during a televised interview with CNBC. “Is it going to end badly for some of the people involved? Absolutely,” he said, forecasting that many recent speculators could pay the price of investing solely on the hopes of selling to someone else at a higher price later on.
Damodaran said that because bitcoin is marketed as a cryptocurrency, it is impossible to evaluate it. This is why, in the past, he has labeled bitcoin a “dangerous pricing game.”
However, he stressed that it is important to differentiate between cryptocurrencies and other types of cryptoassets. Crypto-commodities, a group that he …
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