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.
