Bitcoin

There has been plenty of press recently in respect to Bitcoin.  Please click on the link below to view Shane Oliver's views on the potential for a Bitcoin bubble.

Key points raised are : 

  • Investment markets are driven by more than just fundamentals. 
  • Investor psychology plays a huge role and along with crowd psychology helps explain why asset prices go through periodic bubbles and busts
  • The key for investors is to be aware of the role of investor psychology. A great defence is to be aware of past market cycles and bubbles - so nothing comes as a surprise - and to take a contrarian approach.
  • Crypto currencies and blockchain technology may have a lot to offer but bitcoin's price is looking very bubbly.