Bitcoin News

Bitcoin Is Not A Bubble Anymore, Presently Trading Over $39k.

Several entities around the world have called Bitcoin [BTC] a bubble since its inception roughly 12 years ago. The CEO of digital asset financial services outfit Amber Group, Michael Wu, thinks otherwise, however.

“I think it’s always like this when people inherit new paradigm shift,” Wu added within an official CNBC interview on Thursday, pertaining to the concept of Bitcoin as a bubble. “People start with doubts, with skepticism — it’s very natural because they’re going to need to take time to know what’s new there, is it sustainable,” he explained, adding:

“In the primary stage, that sort of understanding, that sort of skepticism, always comes with tons of price volatility. However, I don’t think you’ll call Bitcoin a bubble anymore, because, as I discussed earlier, you’ve got of these institutions, of these billionaires, multi multi-billion-dollar listed firms, all these, you know, of these newcomers into the crypto industry. They’re purchasing Bitcoins, they’re buying cryptocurrencies and there are solely 21 Mln Bitcoins out there.”

References to large mainstream players purchasing Bitcoin has become far more common in recent months. Microstrategy allocated over $1 Bln to Bitcoin earlier in 2020. MassMutual put $100 Mln into BTC sometime thereafter, and Square later came in as with $50 Mln.

The rationale for Bitcoin’s long-term price rise includes its limited supply matched with significant interest within the asset, Wu explained. “There are going to be price volatility, there’ll be short-term price corrections,” he added. “Sometimes these price corrections are often violent, but I feel we’ve passed the stage of calling Bitcoin a bubble anymore.”

Wu also commented on BTC and its store’s useful role, almost like gold. Bitcoin has seen its justifiable share of comparisons against gold over the years. “The worst-case scenario of Bitcoin remains a far better than gold,” he added.

Earlier on Wednesday, Wu’s company Amber Group announced that Annabelle Huang, one among the firm’s partners, had been given the task of furthering institutional and retail involvement. Amber Group “appointed partner, Annabelle Huang, to steer GlobalX Center, a strategic world-wide expansion team established to grow the company’s institutional and retail product offerings in regions along with South Korea, Japan, Hong Kong, Singapore, Taipei, North America, and more,” as per an official press release.

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