Bitcoin’s Price Seems To Be Primarily Moved By “Speculation”, According To BitPay CEO
Bitcoin’s Price Seems To Be Primarily Moved By “Speculation,” According To BitPay CEO
The crash that the cryptocurrency world has dealt with this year has been substantial. After almost ending the year in 2017 with a $20,000 price tag, the unfortunate fall to the $3200s range has been much more than disappointing. However, CEO Stephen Pair of BitPay believes that “speculation” is to blame for much of the demise.
In a CNBC interview today, Pair discussed how Bitcoin’s price and the evolution of blockchain technology have interacted with the current market. He was questioned about if he thought the value is over, under, or equal to what Bitcoin should be, Pair noted,
“A ‘very big’ component of Bitcoin’s price represents investors’ speculation on future usage and adoption of the technology.”
Even though he sees speculation as being one of the biggest factors for growth, volatility is still a contributor as well. This factor has led BitPay to work on products that are strong in their value, due to what they’ve seen in Bitcoin’s volatile market and prices.
The subject of Bitcoin ETFs arose, and how they could influence cryptocurrencies. In November this year, the CCO of BitPay, Sonny Singh, spoke to Bloomberg to note his predictions for next year, saying,
“I would say, if these traditional incumbents do launch their products, actually, you would see price maybe around $15,000, possibly even $20,000 by the end of next year.”
In another instance, Pair said that the Bitcoin ETF is far from the only catalyst, though it does contribute. He sides with the predictions of the CCO, saying that the value will reach that prediction at some point, if the history of last year is any indication.
As far as blockchain, Pair said, “Blockchain is a database that people use to engage one another.” Still, the only place that blockchain has become the traditional format for a database is cryptocurrency so far. Based on his expertise, Pair believes that it will only take about 3-5 years before blockchain is seen as a mainstream technology that is used in the everyday lives of consumers, even outside of cryptocurrency.
The only way to make these predications possible is for fiat currencies, like “dollars and euros” to be issued with the technology. Expanding, he said,
“If you go to a restaurant or retail organizations, everybody expects the stores should accept payment in the blockchain, but in order for blockchain to reach masses, it’s not just about Bitcoin. It’s about issuing dollars or euros on the blockchain. It shouldn’t just be the payment denominated in terms of bitcoin, but all digital assets can be used as a payment.”
Pair took the time to announce that these methods of progressing industry are exactly the actions that BitPay is taking to build up their platform, rich with mainstream features.