Ethereum has a better chance of being recognised as an exchange-traded commodity than bitcoin. Aswat Damodaran, a renowned asset valuation expert and professor at NYU Stern School of Business, presented this view in an interview with CNBC.
The expert, who has been nicknamed “the dean of Wall Street valuation”, noted the greater growth potential of the second most capitalised cryptocurrency in a possible paradigm of blockchain ubiquity. In his view, Ethereum would be better suited to the role of an asset used in DLT commerce.
“Bitcoin bulls go on and on about profits from rising quotations. But that’s where the commercial presentation ends. That doesn’t speak at all to the essence of the first cryptocurrency.”
Damodaran pointed out that digital gold has no “end goal”. This, according to the professor, leads to treating bitcoin as an asset for “purely speculative gaming”.
The expert called for a clear distinction between cryptocurrencies depending on their objectives.
“We need to separate those crypto-assets that aspire to the status of a currency from those claiming to be ‘gold for millennials’ and those that really fit the status of an exchange commodity,” Damodaran said.