Unconventional policy driving crypto bubble, BNPP economist argues
Cryptocurrencies have the potential to deliver “large, positive returns” in an environment stifled by negative real rates
A bubble in volatile cryptocurrency prices could be a “manifestation” of asset overvaluation caused by unconventional monetary policy, BNP Paribas’ chief market economist suggests.
In a note to investors, Paul Mortimer-Lee says the success of cryptocurrencies – such as bitcoin – is widely seen as a “symptom of disenchantment” with traditional finance and a sign of demand for lower transaction costs.
“Our view is that, additionally, it is a particular manifestation of a more general asset-price
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