A number of entities have referred to Bitcoin as a bubble since it came into being back in 2009. Cynics and crypto opposers have also had their say from the streets all the way up to regulatory high places. Michael Wu, CEO of digital asset financial services outfit Amber Group does not believe that BTC is a bubble.
Volatility due to Skepticism
During a CNBC interview, he explained “the bubble” logic by skeptics as what happens when people shift into a new paradigm. He explained, “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 went on to say that the kind of volatility being seen in crypto markets is a result of early skepticism. According to Wu, Bitcoin cannot be referred to as a bubble asset anymore because we now have all these institutions, all these billionaires, multi-billion dollar listed companies, and the new crypto companies joining in.
Bitcoin no longer a bubble
He further dispelled talk of Bitcoin being an asset class that would disappear soon, pointing out the fact that big asset and investment firms were now involved in it. Microstrategy is one of those investment firms and that firm has put more than a billion into BTC last year alone. The rationale for Bitcoin’s long term price rise includes its limited supply of only 21 million, compared to other cryptos. Wu explained “There will be price volatility, there will be short-term price corrections,” he added. “Sometimes these price corrections can be violent, but I think we’ve passed the stage of calling Bitcoin a bubble anymore.”
Wu’s company has recently appointed one of its partners in Annabelle Huang, as the head of furthering institutional and retail involvement. Annabelle Huang will lead the company’s GlobalX Center, a strategic global expansion initiative designed to grow the company’s institutional reach to regions like Japan, Hong Kong, Taipei, North America and Singapore.
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