Passive investment megatrend blurs market price discovery
Last night I spent a few hours debating crypto assets with family and friends. The central theme of the debate was how one went about determining a sensible valuation for a digital token, let us say Bitcoin, given that it is little more than a string of 0s and 1s that changes hands in the cloud. Our conclusion was that there is no rational way to value an asset that has surged 696% over the past 12 months from an already ridiculous US$6624 per coin.