“I think it’s always like that when people get into a new paradigm shift,” Wu 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’ll have to take the time to understand what’s new out there, whether it’s sustainable,” he said, adding:
“In the early stages, that kind of understanding, that kind of skepticism, is always accompanied by a lot of price volatility. However, I don’t think you can call Bitcoin more of a bubble because, as I said before, you have all these institutions, all these billionaires, multi-billion dollar listed companies, all these, you know, all these newcomers to crypto. They buy Bitcoins, they buy crypto, and there are only 21 million Bitcoins in the market. “
References to major mainstream players buying Bitcoin have become much more common in recent months. Micro strategy assigned more than $ 1 billion in Bitcoin in 2020. MassMutual put $ 100 million in BTC some time after that, and later Square came in toowith $ 50 million.
The rationale for Bitcoin’s long-term price hike involves the limited supply coupled with a significant stake in the asset, Wu explained. “There will be price volatility, there will be short term price corrections,” he added. “At times these price adjustments can be violent, but I think we’ve passed the phase of calling Bitcoin a bubble.”
Wu also commented on BTC and its role as a store of value, similar to gold. Bitcoin has its fair portion of the equations against gold over the years. “Bitcoin’s worst-case scenario is still a better form of gold,” he said.
On Wednesday, Wu’s Amber Group company announced that Annabelle Huang, one of the company’s partners, had been tasked with fostering institutional and retail engagement. Amber Group ”has been appointed as partner, Annabelle Huang, to lead GlobalX Center, a strategic global expansion team created to expand the company’s institutional and retail product offering in regions such as South Korea, Japan, Hong Kong, Singapore, Taipei, North America and more, ”a statement told Cointelegraph.