Dr Shane Oliver- Head of Investment Strategy and Economics and Chief Economist
Early this month, Dr Shane Oliver take a look at Bitcoin which has had nearly a 15 fold increase in price from its low last year. He raises the following key points in the full article link below:
- Digital currencies and blockchain technology may have a lot to offer – but that does not mean Bitcoin will be it.
- Due to extreme volatility, high transaction costs and slow processing, Bitcoin does not cut it as digital cash.
- But it’s not an asset generating cashflows either, which makes it impossible to value.
- The key for investors is not to invest in something if you don’t understand it and to recognise that just because Bitcoin has surged in price does not prove its worth.
The full article and analysis can be found here.