Bitpay CEO – Bitcoin Primarily Derives Its Price From Speculation
Since the monumental price increase in Bitcoin in 2017, experts have speculated that traders have booted investors, creating an environment full of price speculation. Stephen Pair, CEO of the world-renowned crypto-friendly payment processor BitPay, confirmed this theory in a recent interview with CNBC’s Squawk Box.
Speaking to the “Squawk Box” segment of the above-mentioned outlet, Pair, presumably located in BitPay’s Atlanta headquarters, was first asked if BTC is trading at a fair value for the well-recognized digital asset at $3,200 (current prices).
Long-time savant cryptographer Pair, formerly from IBM, noted that “it’s hard to say,” as a major component of the asset’s value is centered around speculative orders that try to measure the impact of BTC on society.
However, he added that a “small component” of BTC’s US dollar valuation is linked to the utility of the asset, such as a digital value store or an extremely secure digital value medium, the latter being the focus of BitPay as an innovative start-up.
When asked about his colleague’s forecast that the Bitcoin price could exceed $15,000 to $20,000 in 2019, Pair spoke about catalysts that could push this cryptocurrency higher in the coming years.
The CEO of the American fintech startup noted that while BitPay already processes $1 billion in BTC / BCH transactions annually, it wants to increase this sum to $10 billion and $100 billion in the coming years as a sign of the growing global influence of cryptocurrencies.
With adoption, the prices rise, Pair added, as the principles of network value dictate, and the simple fact that consumers buy BTC en-masse when payment solutions are transparent and cheap.
The Chief of Industry also referred to the theory that the arrival of institutional players and products, such as a Bitcoin-backed exchange-traded fund( ETF), Bakkt ‘s crypto futures and other related forays, could lead to higher prices, as these efforts could also lead to the adoption of the Bitcoin price.
A major theme in the crypto market in 2018 was the transition from cryptocurrencies to blockchain applications. It should therefore be no surprise that the CNBC anchor asked Pair about the decentralized ledger technologies that underpin the Bitcoin Network and its brothers and sisters.
Pair stated that he has confidence in the decade-old innovation, but added that blockchains are only a form of a database when it comes to the nitty-gritty, rather than an abstract concept that some people see. However, he added that, as the world progresses, companies will begin to adopt blockchain-like data management techniques for a variety of use cases, including, of course, cryptocurrencies.
In conclusion, referring to what lies in the future of this industry, the insider noted that Bitpay’s thesis is that in three to five years’ time, most payments will be made on blockchains, while the majority of assets are based on the same technology.