Amber Group CEO, Michael Wu says that Bitcoin is not really a bubble anymore but that will have notable value fluctuations still as we are reading more in our latest bitcoin news.
Bitcoin will have notable value fluctuations in the upcoming months as a number of entities called Bitcoin a bubble since its inception 12 years ago. Michael Wu, who is the CEO of Amber Group commented:
“I think it’s always like this when people come into a new paradigm shift. 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 continued:
“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.”
The references to large mainstream players that buy BTC became more common in recent months and MicroStrategy allocated $1 billion to BTC in 2020. MassMutual put $100 million into BTC while Square came later with $50 million. The rationale for BTC long-term price rise included a limited supply matched with the strong interest in the asset as Wu explained:
“There will be price volatility, there will be short-term price corrections. Sometimes these price corrections can be violent, but I think we’ve passed the stage of calling Bitcoin a bubble anymore.”
Wu commented on BTC and its store of value role quite similar to gold but BTC saw its fair share of compressions against gold in the past few years:
“The worst case scenario of Bitcoin is still a better form of gold.”
Wu’s company Amber Group announced that one of the company’s partners Annabelle Huang will further work on expanding institutional and retail involvement. Huang will also lead GlobalX Center which is a strategic expansion team that was established to grow the company’s retail and institutional product offering in regions like Hong Kong, Japan, South Korea and North America.
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