Stephen Pair, the CEO of digital currency payment service Bitpay, recently revealed he believes that one of the most significant driving forces behind the prices of Bitcoin are the investors who are speculating on it, while a significantly smaller reason is the cryptocurrency’s actual utility.
He was recently questioned in an exclusive interview on CNBC Squawk Box about whether he thinks that Bitcoin is currently undervalued or whether it is currently near its “fair value.” According to him, it is currently hard to say.
Influences of the Price of Bitcoin
Pair outlined that a significant component of Bitcoin’s price is investor speculation as the investors are not only speculating on the cryptocurrency’s adoption but its future use also.
Furthermore, he went on to state that another, although smaller, component of its price is the currency’s actual utility—something that Bitpay is working on by using the platform as well as delivering products to their customers which they deem as valuable.
He was also quizzed about some comments that Bitpay’s chief commercial officer made when he stated that Bitcoin could go up to $15,000 or even $20,000 over the next year as soon as customary incumbents got into the market with their products. Pair was asked whether these factors can assist in pushing the price of Bitcoin up.
According to Pair, the price of Bitcoin can be increased by several catalysts other than ETF launches or ETF adoption. He was quick to note that Bitpay processes more than $1 billion worth of digital currency payments annually, helping in the growth of crypto adoption and successively boosting the prices even higher.
Stephen Pair on Blockchain’s Tech Future
Concerning blockchain technology, Pair stated that he still has confidence in its potential since he believes that over time, databases will begin to adopt blockchain-based solutions.
According to him, cryptocurrency is merely another potential of the many uses of blockchain-based databases.
Pair further outlined that Bitpay is establishing a “future” platform where most, if not all, assets will find use on a blockchain while most payments will also be conducted on a blockchain.
What’s more, when it comes to the everyday transactions use of digital currencies, Pair outlined that it would happen in a period of between three and five years. This, according to him, is because he believes that the issuing of fiat currencies such as euros and dollars might be done on blockchain in the future, together with all other forms of cryptocurrencies.
The Market Context
Notably, his comments come at a time when the crypto ecosystem has been dealing with a bear market for about a year that saw the value of many cryptocurrencies drop significantly.
The flagship digital currency, Bitcoin, is currently trading at around $3,200—a major slump since this time last year, when it reached a high of around $20,000.