Change of heart? Dean of valuation describes Bitcoin as millennial gold

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Indian professor Aswath Damodaran has believed that bitcoin is the equivalent of gold for young investors. According to him, millennials don’t find the precious metal as tempting as their parents and grandparents and prefer to allocate their money in the main cryptocurrency.

BTC is what gold was 50 to 100 years ago

In a recent interview for CNBC, New York University Stern School of Business finance professor – Aswath Damodaran – shared his thoughts on the recent rally in most virtual currencies, especially bitcoin.

He argued that the USD value of the asset class is heading north as a significant number of investors (10-15%) are ready to diversify their portfolios and choose the crypto market as an option.

Speaking of BTC, Damodaran – also known as the “dean of valuation” – described it as “the millennial gold”. In his opinion, the yellow metal is an obsolete investment instrument for most young people who now find digital currency as an interesting solution:

If you are 35 and have lost your faith, you are not going to buy any more gold. It was for your parents and grandparents. You are going to buy Bitcoin.

The professor noted that BTC not only traded gold as a store of value, but also real estate. He recalled that 50 to 100 years ago people used to allocate their wealth to these assets, while now cryptocurrency took over.

Subsequently, Damodaran drew the best case scenario for bitcoin. He believed that if the digital asset became more stable and less volatile, it would gain global acceptance.

Aswath Damodaran, Source: elmwealth.com The U-turn of Damodaran

While highlighting bitcoin as an attractive investment solution among young investors, the professor was not of that kind in previous comments.

As CryptoPotato reported about a month ago, Damodaran said that digital asset is not an example of a good currency because most people don’t choose it as their payment method. He went even further, declaring that he “failed miserably:”

“A good currency, in my opinion, is a currency which [is] used to buy coffee, buy your house, buy a car, and because of that bitcoin has failed, and not just a failure, it has failed miserably.

Contrary to what the Indian noted in his recent interview on the correlation between gold and BTC, a month ago he argued that the yellow metal is the real store of value because it maintains its price during financial catastrophes while the virtual asset is a very risky asset. investment tool.

Featured Image Courtesy The Economic Times

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