Yale professor criticizes Bitcoin (BTC) volatility: "it's not a great currency"

16 Mar, 2019 | Updated: 17 Mar, 2019
by David Robb
Yale professor criticizes Bitcoin (BTC) volatility: it's not a great currency

A professor and finance expert from Yale recently gave his thoughts on Bitcoin and the crypto space. In an interview with Yale's School of Management site, William Goetzmann claimed that BTC wouldn't be a great currency until its price became more stable.

Goetzmann is the Edwin J. Beinecke Professor of Finance and Management Studies at Yale, and director of the International Center for Finance at the Yale School of Management. 

According to Goetzmann, BTC's instability is its weakness: "because it fluctuates so much, it’s not a particularly good store of value. You could put in $100 worth today, and it could be worth $25 dollars two weeks from now. Until it overcomes that particular feature, it’s not a great currency".

Despite these doubts, the professor did describe the innovations of crypto as "exciting, because each method of storing and transferring value solves different kinds of problems". He compared its ledger technology to the exchange methods used in ancient times.

Goetzmann teaches a course on cryptocurrency at Yale, which is cross-listed between the management and art schools. He commented on the connnections between crypto and the art world, describing the "long history of artists engaging with money: trying to understand what it is, using it as a symbol for things, and even helping to create money. There are artists on staff in the U.S. Mint whose entire careers are based upon design of money".

Read more: Yale economists claim to have discovered the two best predictors for Bitcoin priceWhy does SEC Commissioner Hester Peirce fight for a Bitcoin ETF?

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