A number of organizations have called bitcoin (BTC) a bubble since its inception about 12 years ago. However, Michael Wu, CEO of Amber Group, disagrees.
I think that’s always the case when people come up with a new paradigm shift, Wu told CNBC on Thursday, referring to the concept of the bitcoin bubble. People start out doubtful, skeptical – that’s normal, because they need to take the time to figure out what’s new and whether it’s sustainable, he said, adding:
In the early stages of this understanding, this skepticism is always accompanied by high price volatility. Anyway, I don’t think you can call bitcoin a bubble anymore because, like I said, you have all these institutions, all these billionaires, multi-billion dollar publicly traded companies, all these, you know, all these newcomers in a crypto form. They buy bitcoins, they buy crypto, and there are only 21 million bitcoins.
There have been increasing reports of bitcoin purchases by major players in the mainstream in recent months. Microstrategy has committed more than $1 billion to bitcoin by 2020. MassMutual invested $100 million in BTC some time later, and Square later joined with $50 million.
Part of the reason for the long-term rise in the bitcoin price is that limited supply coincided with high interest in the asset, Wu said. There will be price volatility, there will be a short-term price correction, he added. Sometimes these price corrections can be brutal, but I think we are past the stage of the bitcoin bubble.
Wu also commented on BTC and its role as a value, similar to gold. Over the years, bitcoin has had its share of difficulties compared to gold. At worst, bitcoin remains the best form of gold, he said.
Wu Amber Group announced Wednesday that Annabelle Huang, one of the firm’s partners, has been hired to continue serving institutional and retail clients. Amber Group has appointed partner Annabelle Huang to lead the GlobalX Center, a strategic global expansion team created to grow the company’s institutional and retail products in regions including South Korea, Japan, Hong Kong, Singapore, Taipei and North America, according to a statement to Cointelegraph.
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