BitPay’s CEO, Stephen Pair, said that Bitcoin’s recovery will be driven by future adoption of the digital asset. BitPay is one of the largest and most important merchant platforms in the space. Speculation on future adoption has a bigger influence on Bitcoin’s price than ‘actual utility.’ He said these things during an interview on CNBC a few days ago.
Stephen Pair Says Adoption is Important for Bitcoin
During the interview, he talked about why Bitcoin reached the price it currently has. At the same time, he compared Bitcoin with other price highs registered by the popular virtual currency in the past. He has also said that a small component of the current price is the actual utility. About these things, he commented:
“A very big component of the [Bitcoin’s] price is certainly speculation. It’s investors that are speculating on the future usage and adoption of this technology. I’m sure a small component of that price is the actual utility.”
He went on stating that a Bitcoin ETF approval would provide Bitcoin with the necessary strength for it to grow. Furthermore, adoption will also push prices higher. He is indeed very positive about the rate of adoption in the industry for the next few years. He said that in the next 3 to 5 years we will see restaurants accepting virtual currencies or blockchain payments.
That means that there will not be only cryptocurrencies working on top of blockchain technology but also fiat currencies such as Euros or US Dollars. There are indeed, several stablecoins that aim at providing stable prices to the market but the benefits of virtual currencies such as fast transactions, immutability and low fees.
Hester Peirce, a US SEC commissioner, said that an ETF could happen tomorrow or in 20 years from now. She wants to say to the crypto community not to ‘hold [its] breath’ when they think about the approval of an ETF. The market must be mature enough for the SEC to accept and approve an ETF.
There are several experts that believe that Bitcoin is close to a bottom. Once this bottom is reached, Bitcoin is expected to start growing once again. However, reaching new highs could take not just a few days but probably a few months.
At the time of writing, Bitcoin is the largest virtual currency in the market. It has a market capitalization of $56.94 billion and each BTC can be purchased for $3,267.