Cryptocurrency market is experiencing a severe crash this year than highs of $20000 during these days in last year. During an interview with CNBC, Stephen Pair, CEO of BitPay says that ‘Big component of Bitcoin’s price is ‘speculation’.
Bitcoin Price – Fair, Overvalued or Undervalued?
In a discussion today on December 14, 2018, Stephen pair spoke about the Bitcoin price and the evolution of blockchain technology. While questions about the reason behind Bitcoin’s current price, whether the value is fairer, overvalued or undervalued’, Stephen said that;
A “very big” component of Bitcoin’s price represents investors’ speculation on future usage and adoption of the technology.
While he is confident that speculation is a big component, he said that the small component is the ‘volatility’. Stephen claimed that due to the volatility of Bitcoin’s nature, Bitpay is focusing on building those products that customers will find valuable.
Is Bitcoin ETF a Reason behind the Price of Bitcoin
The conversation also mentioned his opinion on Bitcoin ETF and its effect on the performance of cryptocurrencies because in late November 2018, Bitpay’s Chief Commercial Officer(CCO), Sonny Singh interacted Bloomberg and talked about his prediction for Bitcoin in the year 2019. He reportedly said that;
“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.” Looking at Bitcoin ETF
On similar reference, Stephen says that ‘not just Bitcoin ETF, there are many catalysts too’. He said that customer’s need of using cryptocurrency’ will actually put prices higher. However, Stephen is quite confident about the figures predicted by Bitpay’s CCO, i.e $15,000 to $20,000 at some point in future, provided that if history repeats.
When Will Blockchain Goes Mainstream?
Responding to CNBC, Stephen went on to say that the ‘blockchain is a database that people use to engage one another’. Nevertheless, cryptocurrency is one application of blockchain where the traditional database has tuned into blockchain style database’. Moreover, he predicts the period of 3-5 years to transform the application of blockchain technology into our daily lives or employing it for everyday transactions. Moreover, to turn this prediction into reality, he said that the other currencies like ‘dollar and euros’ must also be issued on blockchain technology.
He stated that;
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, its 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.
Conclusively, he pointed out that the Bitpay is building its platform working on these features.
Do you think that the speculation certainly a reason behind the price of Bitcoin? let’s discuss.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com