After Bitcoin launch about 12 years ago, a number of institutions have called Bitcoin a bubble. However, Michael Wu, CEO of Amber Group’s digital asset financial services outfit, thinks differently.
Wu said in a CNBC interview on Thursday, referring to the idea of Bitcoin as a bubble, “I think it’s always like this when people come into a new paradigm shift.” “People start with doubts, with skepticism — it’s very natural because they will have to take time to understand what’s new there, is it sustainable,” he said, adding:
“In the early stage, that kind of understanding, that kind of skepticism, always comes with a lot of price volatility. However, I don’t think you can call Bitcoin a bubble anymore, because, like I mentioned earlier, you have all these institutions, all these billionaires, multi multi-billion-dollar listed companies, all these, you know, all these newcomers into crypto. They’re buying Bitcoins, they’re buying crypto and there are only 21 million Bitcoins out there.”
According to cointelegraph.com, in recent months, references to big mainstream players purchasing Bitcoin have been even more common. In 2020, more than $1 billion was dedicated to Bitcoin by Microstrategy. Sometime afterwards, MassMutual put $100 million into BTC, and Square later came in with $50 million.
The reason for the long-term price increase of Bitcoin involves its small supply matched by strong demand in the asset, Wu explained. “There will be price volatility, there will be short-term price corrections,” he added. “Sometimes these price corrections can be violent, but I think we’ve passed the stage of calling Bitcoin a bubble anymore.”
Similar to gold, Wu also commented on BTC and its store of value position. Over the years, Bitcoin has had its fair share of contrasts to gold.“The worst case scenario of Bitcoin is still a better form of gold,” he said.On Wednesday, Wu’s Amber Group revealed that the role of furthering institutional and retail engagement had been assigned to Annabelle Huang, one of the company’s partners. Annabelle Huang, Amber Group’s appointed partner, to head GlobalX Center, a strategic global expansion unit set up to extend the institutional and retail product offerings of the organization in regions like South Korea, Japan, Hong Kong, Singapore, Taipei, North America, and more, said a statement given to Cointelegraph.