Tag Archives: portfolio management
Bitcoin Bubble: What Financial Experts Think
Bitcoin Bubble: Is It Irrational?
Is there a Bitcoin bubble? The Economic Times explored opinions of several financial experts.
First, there is Yannick Naud, portfolio manager at London-based Glendevon King Asset Management firm. He has seen an increase in client interest about Bitcoins. His view is that Bitcoin’s accelerated climb to over $1 billion in value is unsustainable.
“It’s completely irrational. As an investor you can’t put any underlying value on the Bitcoin itself. The bubble will burst when there will be less people willing to enter (the Bitcoin market) than people willing to leave it. It’s hard to pinpoint, but it probably won’t last another month at this price.”
Will the Bubble Pop or Governments Intervene First?
Alistair Cotton, a senior analyst with Currencies Direct compares Bitcoin to Napster. Even though Napster was shut down for enabling illegal file-sharing, Pandora’s box had been opened and there was no going back. But investors in Napster did not reap the rewards that others did from the transformation of the music, movie, and television industries.
“If [Bitcoin] gets very popular, I can see the government clamping down. I think it would lead to a massive drop off in the number of users. If you look back in history in terms of financial bubbles, they always end. It’s going to be a very rough ride for guys that invest in Bitcoin for speculative purposes.”
More interviews and analysis via The Economic Times.
Bubble photo by Visual Artist Frank Bonilla used under Creative Commons license.
