Amber CEO: “Bitcoin is no longer a speculative bubble”.
Michael Wu admits that bitcoin will continue to be very volatile, but says the cryptocurrency is now no longer a speculative bubble.
Ever since Bitcoin (BTC) saw the light of day about 12 years ago, the market-leading cryptocurrency has been repeatedly labelled a mere speculative bubble. However, Michael Wu, the CEO of Bitcoin Rush financial services provider Amber Group, vehemently denies this view.
“The argument always comes when there is a paradigm shift,” as Wu countered this accusation in an interview with CNBC on Thursday. “People have doubts and are sceptical at first, which is quite normal because it takes them a while to understand how the new thing works and whether it is really sustainable,” the financial expert continues. To this he adds:
“In the beginning, this lack of understanding, this scepticism, leads to high price volatility. However, I am convinced that Bitcoin can no longer be called a speculative bubble, because in the meantime all the institutional investors, the billionaires and the billion-dollar corporations have entered the crypto market. They are now buying bitcoin, they are now buying cryptocurrencies, but the supply is still limited to a fixed cap of 21 million bitcoin.”
The argument that more and more big players are showing interest in Bitcoin has been repeated mantra-like in recent months. And indeed, major corporations have now invested in the crypto market leader. While software maker MicroStrategy is arguably the largest corporate Bitcoin investor with investments of over $1 billion, insurer MassMutual ($100 million) and payment service provider Square ($50 million) have also purchased large amounts of the cryptocurrency.
The combination of limited supply and increasing demand is accordingly seen as the driving force behind Bitcoin’s rising price trend in the long term. In this context, Wu explains, “There will continue to be volatility, there will be downturns. Some of those downturns will be violent, but nonetheless, I’m convinced that we can no longer call Bitcoin a speculative bubble.”
Finally, Wu also elaborates on Bitcoin’s role as a store of value
The cryptocurrency is mostly compared to gold in this regard. “At worst, Bitcoin is a better form of gold, after all,” as he is also optimistic about this.
On Wednesday, Amber Group, the financial expert’s company, announced that co-owner Annabelle Huang will be specifically tasked with attracting more institutional and retail investors to the firm’s financial products. To this end, she is to lead the GlobalX Center strategic division, which will drive Amber’s expansion into regions such as South Korea, Japan, Hong Kong, Singapore and North America.