Amber Group CEO – ‘Bitcoin is Not a Bubble Anymore’
Several prominent personalities and organizations have been calling Bitcoin (BTC) a bubble since it was introduced about 12 years back. Michael Wu, CEO of cryptocurrency financial services provider Amber Group, does not believe so.
While speaking to CNBC, Wu said “I think it’s always like this when people come into a new paradigm shift,” highlighting the notion of calling Bitcoin as a bubble. “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 further stated:
“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.”
Purchase of Bitcoin by huge investors and enterprises who are usually active in traditional markets has become a daily scenario in the past few months. Microstrategy has set aside over $1 billion for investing in Bitcoin this year. MassMutual has allocated $100 million for investment in Bitcoin in the months ahead. Likewise, Square has entered the fray with plans to invest up to $50 million in Bitcoin.
One of the reasons for Bitcoin’s unabated rally is the declining supply combined with consistent rise in interest. Wu detailed “There will be price volatility, there will be short-term price corrections.” He further stated “Sometimes these price corrections can be violent, but I think we’ve passed the stage of calling Bitcoin a bubble anymore.”
Wu also spoke about Bitcoin and its position as a store of value, comparable to gold. Over the past few years, Bitcoin has been often compared to gold. He said “The worst case scenario of Bitcoin is still a better form of gold.”
Earlier on Wednesday, Amber Group revealed that Annabelle Huang, a partner of the firm, has been tasked with boosting the participation of institutions and retailers. Amber Group issued the following statement:
“appointed partner, Annabelle Huang, to lead GlobalX Center, a strategic global expansion team established to grow the company’s institutional and retail product offerings in regions including South Korea, Japan, Hong Kong, Singapore, Taipei, North America and more.”