[ad_1]
The big component of bitcoin's price is "speculation"
After the monumental rush of the Bitcoin price in 2017, experts have speculated that traders have expelled investors, creating an environment that has been characterized by price speculation. In a recent interview with Squawk Box of CNBC, Stephen Pair, CEO of the famous crypto-friendly payment processor that is BitPay, has confirmed this theory.
Speaking to the "Squawk Box" segment above, Pair, presumably located at BitPay's Atlanta headquarters, was asked for the first time whether BTC at $ 3,200 (current prices) is a fair value for the well-known digital assets. Turning the question upside-down, the long-standing crypto savant couple, former IBM, noted that "it's hard to say" because a large component of the value of the asset is focused on speculative orders, which attempt to assess the impact of BTC will have on society.
Yet he added that a "small component" of the assessment of the US dollar of BTC is linked to the utility of the asset, such as a valuable digital store or a highly secure digital medium – the last of which is the attention of BitPay as an innovative start.
The CEO of BitPay talks about cryptographic catalysts (confident)
Pair, questioned about his colleague's prediction that the price of Bitcoin could exceed $ 15,000 to $ 20,000 in 2019, went on to discuss catalysts that could push this cryptocurrency higher in the coming years. The CEO of the American startup fintech noted that while BitPay already processes $ 1 billion of BTC / BCH transactions each year, it 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 the uptake of higher prices, added pair, as dictated by the principles of the value of the network, and the simple fact that consumers will buy BTC en masse if the payment solutions are simple and cheap.
The head of the industry also hinted at the theory that the arrival of actors and institutional products, such as an exchange-traded exchange (ETF), Bakkt's encrypted futures and other related incursions, could push prices higher, because these efforts could also drive adoption and, subsequently, the Bitcoin price.
The couple trust Blockchain
A general theme in the cryptic market of 2018 was the transition from cryptocurrencies to blockchain applications. Therefore, it should come as no surprise that the CNBC anchor continued to question the pair on decentralized accounting technologies, which are at the core of the Bitcoin network and its altcoin brothers. The couple claimed to have confidence in ten-year innovation, but added that when it comes to the crux of the issue, blockchains are just a form of a database, rather than an abstract concept that some see it as.
However, he added that over time, as the world progresses, companies will begin adopting blockchain-like data management techniques for a number of use cases, one of which is cryptocurrency, of course.
In closing, touching what is in the future of this sector, the insider noted that the argument of Bitpay is that within 3-5 years, most of the payments will be conducted on blockchain, while most of the assets would be located on the same technology.
Bitcoin, Ethernet, Computer Board Title Image Courtesy of Marco Verch on Flickr
Source link
