Yet, he added that a “small component” of BTC’s U.S. dollar valuation is tied to the utility of the asset, like as a digital store of value or an extremely secure digital medium of value – the latter of which being BitPay’s focus as an innovative startup.
Big Component Of Bitcoin Price Is “Speculation”
Since the monumental run-up in the Bitcoin price during 2017, pundits have speculated that traders have ousted investors, creating an environment that has been rife with price speculation. In a recent interview with CNBC’s Squawk Box, Stephen Pair, CEO of the world-renowned crypto-friendly payment processor that is BitPay, confirmed this theory.
Speaking on the aforementioned outlet’s “Squawk Box” segment, Pair, presumably located in BitPay’s Atlanta headquarters, was first asked if BTC at $3,200 (current prices) is a fair value for the well-recognized digital asset. Turning the question somewhat on its head, long-time crypto savant Pair, formerly of IBM, noted that “it’s hard to say”, as a big component of the asset’s value is centered around speculative orders, which attempt to gauge how much impact BTC will have on society.
BitPay CEO Speaks On (Bullish) Crypto Catalysts
Pair, when questioned about his colleague’s prediction that the Bitcoin price could surpass $15,000 to $20,000 in 2019, went on to discuss catalysts that could push this cryptocurrency higher in the years to come. The CEO of the American fintech startup noted that while BitPay already processes $1 billion in BTC/BCH transactions yearly, he wants this sum to grow to $10 billion and $100 billion in the years to come, as a sign of the growing influence of cryptocurrencies on a global scale.
With adoption comes higher prices, Pair added, as is dictated by the principles of network value, and the simple fact that consumers will purchase BTC en-masse if payment solutions are seamless and cheap.
The industry chief also alluded to the theory that the arrival of institutional players and products, like a Bitcoin-backed exchange-traded fund (ETF), Bakkt’s crypto futures, and other related forays, could push prices higher, as such efforts could also drive adoption, and subsequently, the Bitcoin price.
Pair Has Confidence In Blockchain
An overarching theme in 2018’s crypto market has been a shift from cryptocurrencies to blockchain applications. So, it should as no surprise that the CNBC anchor went on to query Pair about decentralized ledger technologies, which underpins the Bitcoin Network and its altcoin brethren. Pair stated that he has confidence in the decade-old innovation, but added that when it comes down to the nitty-gritty, blockchains are just a form of a database, rather than an abstract concept that some see it as.
Yet, he added that over time, as the world progresses, companies will begin to adopt blockchain-like data management techniques for a range of use cases, one of which being cryptocurrencies, of course.
In closing, touching on what lies in this industry’s future, the insider noted that Bitpay’s thesis is that within three to five years, most payments will be conducted on blockchains, while a majority of assets would be situated on the same technology.