A number of companies have referred to Bitcoin (BTC) as a bubble since it was founded around 12 years ago. Michael Wu, CEO of the digital assets financial services company Amber Group, sees it differently.
“I think it’s always like this when people get into a new paradigm shift,” Wu said in a CNBC interview on Thursday, referring to the concept of Bitcoin as a bubble. “People start with doubts, with skepticism – it’s very natural because they have to take the time to understand what’s new there, it’s sustainable,” he said, adding:
“In the initial phase, this type of understanding, this type of skepticism is always associated with great price volatility. However, I don’t think you can call Bitcoin a bubble anymore, because like I mentioned earlier, you have all of these institutions, all of these billionaires, billion dollar public companies, all of these, you know, all of these newcomers to crypto. They buy bitcoins, they buy crypto and there are only 21 million bitcoins out there. “
References to major mainstream players buying Bitcoin have become much more common in recent months. Microstrategy made more than $ 1 billion available to Bitcoin in 2020. MassMutual invested $ 100 million in BTC some time later, and Square later came on with $ 50 million.
One of the reasons behind Bitcoin’s long-term price spike is the limited supply that comes with significant interest 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 managed to stop calling Bitcoin a bubble.”
Wu also commented on BTC and its value creation role, much like gold. Bitcoin has had a fair share of comparisons to gold over the years. “Bitcoin’s worst-case scenario is still a better form of gold,” he said.
On Wednesday, the Wu group Amber Group announced that Annabelle Huang, one of the company’s partners, had been given the task of promoting institutional and retail engagement. Amber Group “appointed Annabelle Huang as a partner to lead the GlobalX Center, a strategic global expansion team established to expand the company’s institutional and retail product offerings in regions such as South Korea, Japan, Hong Kong, Singapore, Taipei, North America and more said a statement to Cointelegraph.