Following its launch, financial giants and mainstream media have been calling Bitcoin (BTC) a big bubble that has a fate to burst for sure.
Meantime, on the flip side, the CEO of Amber Group, Michael Wu thinks otherwise. As claimed by the CEO, the leading cryptocurrency is no more a bubble. He even compared BTC with gold saying that the former is still a better version of gold.
Not Applicable to Call Bitcoin a Bubble
In an interview with CNBC, on Feb. 4, the CEO of Amber Group released the gray area on the misunderstandings people might have towards any kind of new technology in the beginning. This likewise applies to Bitcoin too, as it is still completely a new concept.
The price volatility is likely due to the uncertainty associated with the cryptocurrency, due to it still being in the early stage. Given that, Wu considers it is still not applicable to call Bitcoin a bubble. He emphasized that billionaires including multi-billion-dollar listed corporations have only recently dipped their toes into Bitcoin. Besides, the only 21 million supply is what makes Bitcoin all the more valuable.
As evidence, over the past month, large institutional and corporate players have been greedily buying the cryptocurrency. Microstrategy has already bought more than $1 billion to Bitcoin in 2020 serves as a good example of this. Meantime, MassMutual put $100 million into BTC, with Jack Dorsey’s Square investing $50 million into the cryptocurrency.
Bitcoin Still a Better Form of Gold
The CEO of the crypto-financial service provider did advise that there will be short-term price corrections for the cryptocurrency with overall growth in the long-term:
“There will be price volatility, there will be short-term price corrections Sometimes these price corrections can be violent, but I think we’ve passed the stage of calling Bitcoin a bubble anymore.”
Michael Wu even associated Bitcoin and its role as a store of value with that of gold. He considers that the leading cryptocurrency is still a better form of gold.
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