In new comments to CNBC, BitPay CEO Stephen Pair argued speculation was still the “big component” driving the bitcoin price. Accordingly, Pair said his own company was focusing on providing utility among the speculative flurry.
Speculative Investment Still Driving Bitcoin Price
In an appearance on CNBC’s “Squawk Box,” Stephen Pair, CEO of bitcoin payments processor BitPay, argued it was difficult to determine bitcoin’s current valuation since a major element driving its price was still investors betting on future usage.
Pair further alleged that, at least for now, only a small element of the bitcoin price is underpinned by utility, which is where BitPay is concentrating its efforts in its bid to offer valuable services to its customers.
With that skepticism noted, Pair also said that the bitcoin price should once again see highs between $15,000 USD and $20,000 USD in the forseeable future.
Regarding whether a Bitcoin ETF would catalyze the next bull run in the cryptoeconomy, the BitPay CEO said there were numerous other developments that could drive future rallies, ETF or not. Generally speaking, Pair argued that adoption of bitcoin as a mainstream means of payment would be the best path for the OG crypto going forward.
For Longevity, Mainstream or Bust
While a number of mainstream enterprises are migrating from traditional databases systems to blockchains, Pair expected the trend to multiply in years to come.
“I think in our business we have processed more than a billion dollar worth of payments in a year,” said Pair.
“I would like to see that grow into 10 billion and then 100 billion.”
Moreover, Pair argued day-to-day payments using crypto could see realistic mainstream acceptance in three to five-year timeline.
“You [will be able to] go into a restaurant or a retail establishment and just everybody is going to expect that that store will be able to accept a blockchain payment,” said Pair.
It’s that kind of mainstream adoption that is the holy grail for the cryptoverse. And it’s the expectation of that adoption materializing that has analysts like Fundstrat’s Tom Lee saying this week that bitcoin’s fair market value should really be as high as $14,800.
Whether that’s true or not remains to be seen — only time will tell for now.