The cryptographic money ether “has a better shot” at turning into a product than bitcoin, contends New York University’s Aswath Damodaran.
“If the future lies in blockchain transactions — and ether is going to be a better lubricant of those blockchain transactions — you could actually argue that ether has a stronger upside story than bitcoin does,” Damodaran, an educator of account at NYU’s Stern School of Business, told CNBC’s “Street Signs Asia” on Thursday.
Ether is the digital currency that sudden spikes in demand for the Ethereum blockchain. It right now sits in runner up behind bitcoin as far as market cap, as per Coinmarketcap. Noted advocates of Ethereum incorporate very rich person financial backer Mark Cuban, who disclosed to CNBC already that it “dwarfs” bitcoin.
Damodaran, a long-term doubter of the digital money, said bitcoin comes up short on an “endgame” and considered it a “purely speculative game.”
“All that bitcoin bulls seem to talk about, their biggest sales pitch for bitcoin is ‘Look at how much money I’ve made on bitcoin.’ That’s it, that’s the end of the sales pitch,” he said. “That’s not a sales pitch. That tells me nothing about the substance here.”
“I wouldn’t be surprised if bitcoin is up 20% tomorrow, down 25% the day after. This has become a purely speculative game,” said Damodaran, who is also known as Wall Street’s “dean of valuation.”
The teacher’s remarks came after a breakdown in digital money costs Wednesday stateside.
Bitcoin plunged 30% to about $30,000 at a certain point, yet has since recuperated mostly and was exchanging at $40,110.38 as of 3:51 a.m. ET Thursday, as per Coin Metrics. Ether was not saved in the aftermath, momentarily falling underneath $2,000 before later making a halfway recuperation. It last exchanged at $2,724.61.
That wild ride was likely set off by a huge number of negative features and impetuses, like tweets by Tesla CEO Elon Musk just as guideline by the Chinese government.