Since Bitcoin’s inception some 12 years ago, many have called it a bubble. Michael Wu, president of Amber Group, a digital asset financial services firm, believes otherwise.
“I think it’s always the case when people enter a new paradigm shift.” Wu said on Thursday interview for CNBC, referring to the concept of Bitcoin as a bubble. “People start with doubts, with skepticism – it’s very natural because they will have to take the time to understand what’s new there, is it sustainable” He said, adding:
In the early stages, this kind of understanding, this kind of skepticism, is always associated with a lot of price volatility. However, I don’t think you can call Bitcoin a bubble yet because, as I mentioned before, you have all these institutions, all these billionaires, multi-billion dollar listed companies, all these, you know, all these new cryptocurrency entities. They buy Bitcoin, they buy cryptocurrencies, and there are only 21 million Bitcoins.
References to large mainstream players buying Bitcoin have become much more popular in recent months. The company Microstrategy allocated over a billion dollars to the flagship cryptocurrency in 2020. Moments later, $ 100 million poured into the MassMutual market. Jack Dorsey’s company – Square has also entered the crypto.
The worst-case scenario BTC is the better form of gold
The rationale for the long-term rise in Bitcoin’s prices is its limited supply combined with high interest in this asset.
There will be price volatility, there will be short-term price adjustments. Sometimes these price corrections can be sharp, but I think we are already past the stage of calling Bitcoin a bubble
Wu also commented on BTC and its role of storing value, similar to gold. Bitcoin has often been equated with gold over the years.
“Worst-case scenario, Bitcoin is still the better form of gold”
The CEO said.
On Wednesday, the Amber Group announced that Annabelle Huang, one of the company’s partners, was tasked with further institutional development and retail commitment.
Amber Group “Has appointed partner Annabelle Huang to lead GlobalX Center, a strategic global expansion team set up to develop the company’s institutional and retail product offering in regions such as South Korea, Japan, Hong Kong, Singapore, Taipei, North America and more.”
– we could read in the statement submitted to Cointelegraph.