A number of entities have called Bitcoin a bubble since its inception roughly 12 years ago. Michael Wu, CEO of digital asset financial services outfit Amber Group, thinks otherwise, however. “I think it’s always like this when people come into a new paradigm shift,” Amber Group CEO said in a CNBC interview on Thursday, referring to the concept of 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 said.
“I don’t think you can call Bitcoin a bubble anymore.”
Michael Wu further said, “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, as 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.”
Institutions continue to show interest in bitcoin.
Big institutions buying Bitcoin has become much more common in recent months. Microstrategy allocated more than $1 billion to Bitcoin in 2020. MassMutual put $100 million into BTC sometime after that, and Square later came in as well with $50 million. Wu explained the rationale for Bitcoin’s long-term price rise includes its limited supply matched with significant interest in the asset. Amber Group CEO also commented on BTC and its store of value role, similar to gold. Bitcoin has seen its fair share of comparisons against gold over the years. “The worst-case scenario of Bitcoin is still a better form of gold,” according to Wu.