A number of entities have described Bitcoin (BTC) as a bubble since its inception nearly 12 years ago. Michael Wu, CEO of Amber Group Financial Services for digital assets, believes otherwise.
where Wu said in an interview with CNBC last Thursday: I think it's always like this when people enter a new paradigm shift, referring to Bitcoin's concept as a bubble.
He explained, “People start to doubt - it's very normal because they will have to spend some time understanding what's new there and is it sustainable.
He added: In the early stage, this kind of understanding, this kind of suspicion, always comes with a lot of price volatility. However, I don't think Bitcoin can be called a bubble anymore, because, as I mentioned earlier, we have all these institutions and all these billionaires and the billion dollar listed companies, and all these newcomers in the cryptocurrency space, you know. They buy bitcoins and buy cryptocurrencies and there are only 21 million bitcoins.
references to major players buying Bitcoin have become more and more popular in recent months. MicroStrategy has allocated more than $ 1 billion to Bitcoin in 2020. Mass Mutual put $ 100 million into Bitcoin sometime after that, and Square later came up with $ 50 million.
Wu explained that the rationale for Bitcoin's rise in the long-term price includes a limited supply consistent with a strong interest in the asset.
He added: There will be price volatility, there will be short term corrections ... Sometimes, these price corrections can be violent, but I think we We are past the point of describing Bitcoin as a bubble anymore.
Wu also commented on Bitcoin and its role as a store of value similar to gold. Bitcoin has seen its fair share of comparisons against gold over the years. He said that the worst-case scenario for Bitcoin was still a better form of gold.
Last Wednesday, Wu's subsidiary Amber Group announced that Annabel Huang, one of the company's partners, had been assigned the task of promoting corporate engagement and retail. Amber Group Designated Partner Annabel Huang will lead Global X Center, a strategic global expansion team created to grow the company's corporate offerings and retail products in multiple regions including South Korea, Japan, Hong Kong, Singapore, Taipei, North America and more, said a statement provided to Coin Telegraph.
