Aswath Damodaran, a Professor of Finance at the Stern School of Business at New York University (NYU) and a specialist in corporate finance, believes that the traction in Bitcoin and other cryptocurrencies in Asia’s emerging markets is overstated.
Asked whether the current surge in the value of cryptocurrencies reflected the maturation of the market or indicated a coming correction to more stable levels, given similarities to the Bitcoin bubble of 2013/2014, Damodaran explained: “This is a pricing game, where mood and momentum dominate. Predicting corrections is meaningless since you cannot act on them unless you get specific about when the correction will happen and by how much.”
