Bitcoin Price Determined By Speculation, Not Utility: BitPay CEO

Stephen Pair, the CEO of BitPay has commented that the price of Bitcoin is hardly determined by the actual utility value of the pioneering cryptocurrency. Instead, he said, the price of Bitcoin is influenced by the market speculation. His opinion that Bitcoin’s use value matters only a little when compared to the speculation that goes on surrounding it.

You May Also Read: Why Does The Price of Bitcoin Move So Much?

Pair made these comments while speaking on a CNBC programme called the Squawk Box. He also stated that BitPay plans to work on reversing that situation in the near future. He said

“A very big component of the price is certainly speculation. It’s investors speculating on the future usage and adoption of this technology. A small component of the price is actual utility, and that’s what BitPay is focused on — using the platform and delivering products to our customers that they find valuable.”

Pair went on, adding that for BitPay mass adoption was an important factor in driving Bitcoin prices and that it would focus on building that aspect of Bitcoin pricing soon. It is dedicated towards building an infrastructure that would be able to make such pricing possible. The host then asked Pair what he thought of the impact of waiting for Bitcoin ETF approvals on the market price of the same. Responding to that question, the CEO said that the Bitcoin ETF tussle was only a small determinant of this cryptocurrency’s price, and that the dream run of 2017 or the bearish gloom of this year, both had other influencers as well.

The CEO also commented on the growth prospect of BitPay itself, saying its yearly transaction volume should grow from 1 billion dollars a year to 10 or even 100 billion dollars a year, with greater Bitcoin adoption. He also expressed great hopes about the possibility of adopting blockchain technology across a number of fields. He said :

“Our thesis at BitPay is that most digital assets will be issued on a blockchain and most payments will be issued on a blockchain. We are building a platform for that future. Remember this is not just about bitcoin or the various tokens that we see today. It’s also about issuing dollars or euros on a blockchain. So we’re not just talking about payments denominated in bitcoin terms when we speak about blockchain payments. We’re talking about all kinds of digital assets that could be used for that payment.”