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Speculative Investments Driving Bitcoin Prices- BitPay CEO

The market price for Bitcoin has not shown any signs of leaving its found spot on the $3000 market, and if anything, it just might continue to plummet. As many investors and crypto enthusiasts continue to hope for a quick rebound, we take a moment to explore the superficial factors that affect the price of a BTC.

What drove it?

When the price for the king of cryptocurrency rose from a modest point of $985 per coin in January to a staggering peak of $19,784.93 late 2017, there was only one question on the lips of new investors and crypto enthusiasts, what drove it?
The close of the year would see Bitcoin at its high, dominating market capitalization and market volume rankings, and shattering records and headlines. 2018, however, has been a terrible contrast to the highs of last year.  It started with rumours from China and some Asian countries about the possibility of every BTC operations in the country being shut down. Most of the rumours, unfortunately, unfurled into the truth, and many prospective investors were left wondering if the value of Bitcoin was worth all the hype in the first place. The market has made a hard turn since then.
Stephen Pair, the current CEO of Bitcoin payment platform, BitPay, has given more details on what might have happened between the lines. According to him, actual trades and transactions with Bitcoin is not the major driving force behind the boost or plum of the leading digital currency.

All about Speculation

According to Pair, speculative investments have long been the major driving force behind increase or decrease in the price of Bitcoin. The actual use of the major coin as a currency only influences a fraction of its value. Speaking in an interview on CNBC’s Squawk Box, 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.”

While the bear has discouraged many, Pair believes blockchain is bound to receive quicker mass adoption, predicting that the adoption of the distributed ledger technology would be a major boost for Bitcoin. He expects that in three to five years, one would expect to make Bitcoin payments on the blockchain; including fiat currencies such as Euro and Dollar as well.

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