More than 50% of European families have some investment in digital currency. The average European family sees crypto as a viable investment and savings option. This was discovered in several recent surveys conducted over different demographic areas. Despite the volatility of the crypto space, as recent events highlight, it has seen a continuous rise in new investors. More people are committing to crypto investments and many of them are taking steps to buy into the growing market. The flurry…
One crypto critic, New York University’s Aswath Damodaran, thinks Ether has a better chance of becoming a commodity in a possible blockchain-based future than Bitcoin. The NYU professor argued that Ethereum’s upside potential outweighs Bitcoin’s potential in a possible future paradigm dominated by blockchain-based technology.
According to Damodaran, ETH will outshine BTC as a better lubricant for blockchain commerce. As for Bitcoin, the professor noted that the popular crypto was a speculative play.
He added that bitcoin bulls seem to talk about their biggest sales pitch for bitcoin and how much money they have made on bitcoin. He says that’s the end of the sales pitch, and there is no substance there.
At the beginning of May, Damodaran called BTC an “inefficient currency” earlier in May. Uniswap — an ETH-based decentralized exchange — flipped Bitcoin on daily revenue, indicating the scale of the transaction volume disparity between the two.
In August 2017, Damodaran described Bitcoin as a “pricing game with no good ending.”
The crypto market is in the middle of a massive downtrend, with Bitcoin dipping more than 30% in the last eight days. Like other cryptos, the price of Ethereum crashed to a multi-week low of $1,885 as the cryptocurrency sell-off accelerated. Ether then bounced back and is trading at $2,660, 40% above the lowest level yesterday.
Second-Largest Digital Currency
The coin has a market capitalization of over $307 billion and is still the second-biggest digital currency. ETH has generally been in a solid bullish trend and remains above the 200-day exponential moving averages. This is usually a significant level that most analysts watch. Many investors are optimistic that the currency will bounce back.
Ethereum is still the most powerful platform for building decentralized applications. This trend will continue despite the crash. Damodaran noted that bitcoin lacks an endgame.
Damodaran, also referred to as Wall Street’s “dean of valuation, said he wouldn’t be surprised if bitcoin is up 20% tomorrow. Then down 25% the day after.
The NYU professor of finance also called for a more nuanced crypto nomenclature that better captures the differences among existing cryptos. He thinks the crypto space should be divided, given that their intended purposes vary. The divisions should include cryptos trying to be currencies, those cryptos trying to be collectibles — millennial gold — and those cryptos that are commodities.