Wall Street’s Popular Finance Professor Answers The Gold and Bitcoin Comparison
Which is better: Bitcoin or Gold?
Aswath Damodaran is a Professor of Finance at the Stern School of Business at New York University (Kerschner Family Chair in Finance Education), where he teaches corporate finance and equity valuation. He is best known and famous as author of several widely used academic and practitioner texts on Valuation, Corporate Finance and Investment Management. Damodaran is widely quoted on the subject of valuation, with “a great reputation as a teacher and authority.”
And he will answer the Bitcoin and gold comparison.
Cryptocurrencies are quickly becoming a preferred alternative to gold for people who don’t trust traditional fiat currencies, according to Aswath Damodaran, a professor of finance at the NYU’s Stern School of Business.
A specialist in corporate finance and equity valuation, Damodaran is often cited by media as the “Dean of Valuation” on Wall Street.
It’s against this backdrop that the finance expert recently remarked that cryptocurrencies could eventually replace gold or emerge as an alternative to legal currencies issued by central authorities.
“If you don’t trust paper currency, historically what you’ve done is you dumped paper currencies [and] you bought gold,” he said in the interview.
Damodaran told CNBC:
“Cryptocurrencies have taken the role of gold at least for younger investors, because they don’t trust paper currencies.”
As reported by CoinDesk, the price of bitcoin surpassed the value of an ounce of gold for the first time in March, and has steadily traded above this mark for much of the time since.