Professor of the Department of Finance of the University of New York (NYU) Aswath Damodaran criticized the interest of corporations in cryptoactives and called to refuse to buy bitcoins.

In his article, Damodaran claims that Bitcoin does not meet the main goals of corporate reserves, but on the contrary, creates risks for the business. The money on the balance of companies is designed to serve as a shock absorber of financial shocks – they can be used to cover unforeseen needs, overcoming the economic crisis. According to the professor’s observations, during market sales, bitcoin reserves fall precisely when the funds are most needed.

Professor of the University of New York claims that if Bitcoin occupies a significant part of the investment portfolio of companies, this can divert the attention of society from the main activities of these companies. Bitcoin can create confusion and cause bewilderment: why does a company with a stable business strategia seek to earn money on secondary sources of income? According to the scientist, the volatility of bitcoin is able to belittle the results and achievements of the company: jumps in the course of cryptocurrencies can negatively affect financial statements and complicate understanding – how the results of the activity are reflected on the balance of the company.

The professor doubted the ability of companies managers to play cryptocurrencies effectively in the market. According to Damodaran, for the most part, top managers are bad traders who buy cryptocurrency in maximums, and sell at minimums. The professor believes that it would be more profitable for shareholders to receive money in the form of dividends or shares in order to dispose of funds at their discretion.

Damodaran is afraid of possible consequences for American corporations selling bitcoins and collection tokens (NFT). Even if the shareholders approve of this, there is a high probability that what is happening will not like the US securities and exchanges (SECs) and other financial regulators due to the lack of clear rules.

The professor advised companies to buy bitcoins if they work in countries with an unstable economy, for example, in Argentina. It is advisable to purchase bitcoin to those legal entities that use BTC in their activities, for example, the American Crypto -Running Coinbase.

Damodaran has long been criticized by the main cryptoactive. A few years ago, the professor doubted that Bitcoin could become a viable currency, since it is difficult to conduct microtransactions with him due to high commissions and a limited proposal.