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BTC$23 245.06

-0.67%

Ethereum
ETH$1 649.98

-0.90%

Tether
USDT$1.000242

0.01%

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USD Coin
USDC$0.999630

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Ether is a better commodity than Bitcoin, says NYU Professor


20 May 2021

#Ethereum

One crypto critic thinks Ether, not Bitcoin, has a better chance of becoming a commodity in a possible blockchain-based future. Aswath Damodaran, professor of finance at New York University’s Stern School of Business, has tipped Ether (ETH) as having a better chance of becoming a commodity than Bitcoin (BTC). Speaking to CNBC, the NYU professor argued that Ethereum’s upside potential outweighs that of Bitcoin in a possible future paradigm dominated by blockchain-based technology.

According to Damodaran, ETH will trump BTC as a better lubricant for blockchain commerce. As for Bitcoin, the NYU professor said that the premier crypto was a speculative play, adding: “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. That’s not a sales pitch. That tells me nothing about the substance here.”

Indeed, decentralized finance as an emerging market segment has grown massively on the Ethereum network. According to DappRadar, the adjusted total value locked in ETH-based DeFi protocols is above $65 billion as of the time of writing. Earlier in May, Uniswap — an ETH-based decentralized exchange — flipped Bitcoin on daily revenue indicating the scale of the transaction volume disparity between Ethereum and Bitcoin.

Damodaran’s Bitcoin critique is not new as the NYU professor called BTC an “inefficient currency” earlier in May. Back in August 2017, Damodaran, popularly dubbed Wall Street’s “dean of valuation” described Bitcoin as a “pricing game with no good ending.”

The NYU professor of finance also called for a more nuanced crypto nomenclature that better captures the differences among existing cryptocurrencies. According to Damodaran, “I think we need to start to separate the crypto space into those cryptos that are trying to be currencies, those cryptos that are trying to be collectibles — millennial gold — and those cryptos that are actually commodities.” As previously reported, the crypto market is in the middle of a massive downtrend with Bitcoin dipping more than 30% in the last eight days. The total market capitalization has also taken a huge dent, losing over $800 billion within the same period.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 62% 76 $23 245.06 -0.67% -1.07% $448 215 363 984 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 70.4% 57 $1 649.98 -0.90% 2.45% $201 913 823 772 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.8% 1 $1.000242 0.01% 0% $68 081 088 023 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 78.8% 38 $330.03 0.12% 4.56% $52 111 151 986 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 93.6% 1 $0.999630 -0.04% -0.04% $41 975 476 278 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 75.2% 42 $0.407147 -1.05% -1.24% $20 682 712 207 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 94.4% 1 $1.000002 -0.02% -0.02% $16 258 300 058 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 70% 64 $0.395468 -1.61% 1.39% $13 686 825 295 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 71.6% 51 $0.093562 -0.49% 4.31% $12 412 982 136 DOGE 7 days price change
10 Polygon (MATIC) MATIC Polygon predictions 68.4% 67 $1.22 -0.49% 4.26% $10 662 953 667 MATIC 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 94% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 Solana (SOL) SOL Solana predictions 59.2% 86 $23.86 -3.04% -2.86% $8 889 364 349 SOL 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 64.8% 73 $0.000015 4.49% 21.57% $8 029 262 331 SHIB 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 67.6% 66 $6.74 -2.85% 2.41% $7 777 843 515 DOT 7 days price change
15 HEX (HEX) HEX HEX predictions 68% 60 $0.041057 -9.25% 52.42% $7 119 677 926 HEX 7 days price change

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