It's unfortunate that there's nothing to control BTC's price, but it's very difficult to do that in a way that's decentralised and also doesn't limit the use of the currency.
Byteball has a shot at it by having a static transaction fee in bytes, which could potentially help to peg down the price to whatever people consider the value of storage on their network to be, but it sets practical limits on the network's capacity, which is something that I can't see BTC ever doing.
I suppose right now BTC's price isn't really justified, but at least he's being positive by explaining what it would take for the price to become justified.
Topic: NYU's 'dean of valuation' says price is justified if it's used as a currency (Read 145 times)
October 26, 2017, 02:00:12 PM
October 26, 2017, 01:05:41 PM
New York University professor of corporate finance and valuation Aswath Damodaran believes that bitcoin is more of a currency, but isn't yet practical to be used as one. He argues that 'bitcoin is an asset and not a currency and as such, you cannot value it or invest in it; you can only price it and trade it.'
"I think the better path for bitcoin is to actually make it a digital currency, a currency that you and I can take on our travels and use actually to buy stuff and sell stuff. If that happens, then I'm OK with the pricing, If that doesn't happen, I don't see how bitcoin can have the staying power of gold. It could be just another fad. Another digital currency could replace it,"
Source: https://www.cnbc.com/2017/10/24/nyus-dean-of-valuation-says-bitcoin-is-a-currency.html
It's a good read; an expert in the field of investments and valuation speaks up his own mind about bitcoin's current state and believes that the cryptocurrency is more of a currency rather than an asset as what most people deem it to be today. Interestingly, he added that the price would be okay and justified if the coin is used widely for domestic transactions and other trades similar to what fiat can accomplish.
Every single day, more and more people on the financial institution are giving out their thoughts about bitcoin and its recent boom. Is this an indicator that bitcoin is slowly getting the attention from the financial magnates and be another reason for yet another astronomical gains or are these institutions just riding bitcoin's short stint of glory to promote their own cryptocurrency (in the future) subliminally?
"I think the better path for bitcoin is to actually make it a digital currency, a currency that you and I can take on our travels and use actually to buy stuff and sell stuff. If that happens, then I'm OK with the pricing, If that doesn't happen, I don't see how bitcoin can have the staying power of gold. It could be just another fad. Another digital currency could replace it,"
Source: https://www.cnbc.com/2017/10/24/nyus-dean-of-valuation-says-bitcoin-is-a-currency.html
It's a good read; an expert in the field of investments and valuation speaks up his own mind about bitcoin's current state and believes that the cryptocurrency is more of a currency rather than an asset as what most people deem it to be today. Interestingly, he added that the price would be okay and justified if the coin is used widely for domestic transactions and other trades similar to what fiat can accomplish.
Every single day, more and more people on the financial institution are giving out their thoughts about bitcoin and its recent boom. Is this an indicator that bitcoin is slowly getting the attention from the financial magnates and be another reason for yet another astronomical gains or are these institutions just riding bitcoin's short stint of glory to promote their own cryptocurrency (in the future) subliminally?
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