According to Michael Wu, CEO of Amber Group, Bitcoin (BTC) should not be classified as a bubble. Volatility is likely to remain, for now, however, BTC has already emerged as a class of reliable assets, the businessman said in an interview with CNBC.
Many investors are suspicious of cryptocurrency because its price fluctuates a lot in both directions. That is worrying and makes potential bitcoin buyers skeptical.
Michael Wu said: "People always doubt what is natural because it takes time for them to understand what they are dealing with and whether it is sustainable."
Periodic exacerbations of volatility are the main factor that frightens many investors who are ready to invest in BTC but are still using wait-and-see tactics. However, it is worth recalling that many public companies have already invested in bitcoin, and their number continues to grow.
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The CEO of Amber Group was referring to MicroStrategy and Square, which previously confirmed that they bought more than $ 1 billion and $ 50 million worth of bitcoins, respectively. Even if volatility persists shortly, we still cannot call Bitcoin a bubble.
Cryptocurrency is gradually becoming one of the key safe-haven assets. Moreover, Michael Wu does not rule out a scenario in which bitcoin will take the place of gold.
On Saturday. On February 6, the BTC rate rose to $ 39,300. Today, the coin can break above $ 40,000 and at least repeat the race at the beginning of January 2021. Recall that at the beginning of last month, Bitcoin reached $42,000.