Some organizations have called Bitcoin a bubble since it first emerged, around 12 years ago. Michael Wu, CEO of Amber Group digital asset financial services, is one who thinks the opposite.
Referring to the characterization of Bitcoin as a bubble in a CNBC interview on Thursday, Wu said, "I always think this is the case when people enter a new paradigm shift. People start innovating with suspicion. It is very natural because it is time to understand the workings and details of the new entity. they'll have to separate. " said:
“In the early stage, this kind of opposition, this kind of skepticism, is caused by too much price volatility. However, I don't think you can call Bitcoin a bubble anymore, because, as I mentioned earlier, all these institutions, all these billionaires, multi-billion dollar listed companies, all of these are now slipping into the world of cryptocurrencies, buying Bitcoin, and the market is simply There are 21 million Bitcoins. So investing in BTC is now a logical and profitable business. "
Large mainstream institutional investors buying bitcoin have become much more common in recent months. Microstrategy has allocated more than $ 1 billion to Bitcoin in 2020. MassMutual invested $ 100 million in BTC and Square subsequently invested $ 50 million.
Bitcoin Is No Longer A Balloon
Wu explained that Bitcoin's long-term price increase will occur thanks to the institutions that show significant interest in the asset and its limited supply. "There will be price fluctuations, there will be short-term price corrections. Sometimes these price corrections can be violent, but now I think it's long overdue to call Bitcoin a bubble." said.
Wu also commented on BTC's role as a gold-like store of value, saying "Bitcoin is a better form of investment than gold."
On Wednesday, Wu's company Amber Group announced that the company's partner, Annabelle Huang, was tasked with furthering corporate and retail involvement. Amber Group "appointed Annabelle Huang to lead the GlobalX Center, a strategic global expansion team established to grow the company's corporate and retail product offerings in regions such as South Korea, Japan, Hong Kong, Singapore, Taipei, North America, etc."
