Bitcoin Price Driven More by Speculation Than Utility: BitPay CEO

BitPay CEO Stephen Pair has stated that speculation drives a substantial part of bitcoin’s current valuation, while the actual use of the crypto market leader as a currency is responsible for only a relatively small fraction of its price. Speaking on CNBC’s Squawk Box, Pair revealed that BitPay intends to change this situation significantly over the next few years.

In his words:

“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.”

Expected Predominance of Blockchain Payments

Speaking further, Pair stated that BitPay believes that mass adoption is a key driver of the future price of bitcoin, and it is focused entirely on building supporting infrastructure to make this possible. Responding to a question from the host about his opinion on the impact of the long-awaited bitcoin ETF on the asset’s price, he said that he there are many catalysts for bitcoin to hit the highs of late 2017 apart from ETF adoption or launches.

In his view, BitPay’s current transaction volume of about $1 billion a year should ideally grow to $10 billion or $100 billion annually in a few years as more and more customers begin to expect cryptocurrency payment support across a wide range of everyday retail and transaction applications. When this happens, according to him, the bitcoin price will be driven to highs comparable to December last year.

BTC/USD | Bitstamp

Significantly, Pair revealed that in his opinion, blockchain adoption would expand far beyond the cryptocurrency space and become accepted as the default database style. Within a three to five year time frame, Pair said, everyday users will be able to go into a restaurant or retail establishment and reasonably expect support for a blockchain payment.

He also predicted that this would extend beyond bitcoin as more and more blockchain-hosted assets would become default means of storing and transferring value.

In his words:

“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.”


Source
Author: David Hundeyin
Image Credit: Charts from TradingView

Numerous Bitcoin Wallets May Have Been Compromised by Rogue Developer

A Node.js module called event-stream is used in millions of web applications, including BitPay’s open-source bitcoin wallet — Copay — and this module was reportedly compromised thanks to what can objectively referred to as social engineering, laziness, and incompetence.

A user with very little coding activity on GitHub requested publishing rights to the event-stream library from its previous maintainer, Dominic Tarr, who said that he had not maintained the repository in years and gave control to the new user, called right9ctrl.

The library event-stream is used in many Node.js applications. According to a complainant on GitHub, the new maintainer right9ctrl either pulled a sneaky move to inject malware or unknowingly had the same effect as if he had, that effect being that it would leak private keys from applications that relied on both the event-stream and copay-dash modules.

Ayrton Sparling wrote:

“He added flatmap-stream which is entirely (1 commit to the repo but has 3 versions, the latest one removes the injection, unmaintained, created 3 months ago) an injection targeting ps-tree. After he adds it at almost the exact same time the injection is added to flatmap-stream, he bumps the version and publishes. Literally the second commit (3 days later) after that he removes the injection and bumps a major version so he can clear the repo of having flatmap-stream but still have everyone (millions of weekly installs) using 3.x affected.”

Basically, the developer updated the module with malware and then patched the problem to avoid detection, but the numerous people who had already installed it remain affected. Copay — whose open-source code is itself used by many crypto applications — would be just one of many that use the library, but it happens to be built and maintained by a multi-million dollar Bitcoin payment processing company — BitPay — which raises questions on its own.

Why Does BitPay Use Upstream Libraries?

Those outside of open source development may have the misconception that it is all done for free due to ideals or hobbyism, but this is far from the case. The majority of major and important open source development, such as work on Bitcoin Core or work on the Linux Kernel, for instance, is done by developers who are employed by companies with a stake in the development of such software.

Companies like Red Hat contribute code to the Linux Kernel and companies like Blockstream employ Bitcoin Core developers. The reason is obvious: while they could simply wait on releases and rely on the work of others, these companies understandably have aims to achieve in development and also, most importantly, have a lot of money at stake in kernel development.

This model works for major software development, and this author believes that there is no reason it shouldn’t be applicable here. Rightfully, BitPay should arguably not be using software on a trust basis. Millions upon millions of dollars in client wallets are being entrusted to them, not upstream developers. If BitPay is not interested in actively developing libraries like event-stream, then they should use forked versions, verifying that each update is safe. Instead, as many industry stakeholders have alleged, they’ve demonstrated incompetence.


Source
Author: P. H. Madore
Image Credit

Experts Say Cryptocurrency Is Here To Stay, Will Be Used For Everyday Life

Cryptocurrency may be more than a hot trendy investment, it could become a part of everyday life.

               



Cryptocurrency may be more than a hot trendy investment, it could become a part of everyday life. For many of us, it’s something that’s out of reach that we leave for big investors. But we spoke with folks who say that’s already changing.

Jeff Flowers teaches chemistry at the College of San Mateo. He is also at the forefront of economic innovation.

He paid for his pastries at Dianda’s in San Mateo with a debit card loaded with Bitcoin and also did the same thing when he bought coffee.

“So what happened, I was able to buy a cup of coffee using cryptocurrency, using a BitPay debit card,” he said.

BitPay was founded in 2011. CEO Stephen Pair told us, “We launched a debit card that allows you with just a couple of taps on your phone convert bitcoin into a dollar balance that is spendable anywhere Visa is accepted.”

According to Pair, BitPay users spend anywhere from $500,000 to $1,000,000 a day.

San Francisco resident Marisha Sahay stores her Bitcoin using the Coinbase mobile wallet. She recently paid for drinks at Stookeys Club Moderne in San Francisco with Bitcoin.

Sahay hopes cryptocurrency will become the worldwide standard, eliminating the need to exchange money.

“I go to India I have to change dollars into rupees and then into dollars so I Iose a lot of money paying it to the government,” she said.

Stookey’s believes paying with cryptocurrency is the wave of the future. Co-owner Aaron Cole told ABC7, “I’m a big backer of it. It’s something that’s going to be pretty mainstream.”

How soon it becomes mainstream is a matter of opinion.

San Francisco-based futurist James Canton thinks that time is now.

“I think in 2018 we’re going to see a significant mainstreaming of cryptocurrency, particularly for purchasing more real things that people need,” he said. “You’ll be able to walk into grocery stores, be able to buy them for vacations and travel. You’ll be able to basically spend cryptocurrencies the way you spend dollars today.”

At least two online retailers have jumped onto the cryptocurrency bandwagon.

Purse IO sells discounted Amazon products and only accepts Bitcoin for payment.

Overstock.com expects to do $10 million in sales from people using cryptocurrencies.

“We’re in the business of making it easier for people to purchase stuff on our site whether that’s credit cards or Paypal or cyrptocurrency. That made sense to us,” said Overstock.com executive and board member Jonathan Johnson.

Johnson says he received his bonus in Bitcoin last year.

Flowers, who also serves as a consultant to several overseas banks, has also been paid in Bitcoin.

We even found an ATM at a neighborhood grocery store in San Francisco where you can both buy and sell cryptocurrency.

Mike Rothenberg of Rothenberg Ventures has followed this all closely.

“It’s pretty clear that electronic currency is here to stay,” he said. “And so you’re seeing a lot of hype.”


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author:  Michael Finney & Randall Yip
Image Credit
Video Credit

Tom Lee on why Bitcoin [BTC] is the next step for banks

Thomas Lee of Fundstrat spoke about the long-term picture for Bitcoin [BTC] when appeared earlier this week on CNBC. He believes that the regulatory environment is changing.


Join in the fun and play on the world’s First Hybrid on-line Casino with BTC and Fiat currency payments. Check on-line for latest promotions.


He began by speaking about exchanges, and why banks should look into becoming exchanges. He stated top exchanges like Coinbase and Binance which have a 2-3% market share make close to a billion dollars, while Goldman Sachs themselves made $8 billion over the past 12 months. Exchanges provide lucrative opportunities for banks to increase their profits and move into the crypto space.

He also stated that there wasn’t as much speculation in the cryptocurrency market as people expected, stating that the ratio between the on-chain and exchange currencies is 4:1. This means that for every 1 coin on the exchange, there are 4 on the chain. Other resources like oil have a much higher ratio such as 40:1, with USD being traded 141:1.
He said:
“Crypto is a digital payment system which is actually widely used.”
He said that around 7 billion payments occur using Bitcoin. He spoke about BitPay Checkout service, which conducts 6% of all Bitcoin payment transactions. It is a Point of Sale mechanism that allows brick-and-mortar establishments to accept cryptocurrency payments.


Don’t forget to join our Telegram channel for Crypto, Business & Technology news delivered to you daily.


He also stated that cryptocurrencies are currencies that are global, and these account for the high amount of payment transactions. He said that it was actually easier to send a payment in Bitcoin across the world than it was to transfer money overseas.

When asked about his famous prediction of Bitcoin reaching $25000 by the end of this year, he stuck to his prediction. He called it “completely reasonable” quoting the peak last year at $20000 as his data. He also relied on regulatory visibility by the end of the year, as the big regulatory parties in the US were moving towards a clear conclusion.

Many financial institutions are pro-crypto, he said, with a great regulatory environment outside the United States. He also stated that a lot of exchanges were being launched. A significant milestone earlier this week was the launch of SBI Japan’s Virtual Currencies platform being launched, marking one of the biggest institutional player’s entries into the market.

He also backed up his prediction with the mining process. Going by the current difficulty, he said that the price for one Bitcoin to be mined would be around $14000, which when traded up twice becomes $25000.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author: Anirudh VK
Image Credit