Sonny Singh, chief commercial officer (CCO), BitPay, has noted that the price of Bitcoin is yet to hit its peak. Speaking on Bloomberg TV, BitPay CCO argued institutional adoption of cryptocurrencies was still at a low level. He mentioned Facebook is yet to launch a cryptocurrency, Square, and Fidelity also have crypto-related products. For Singh, the rally has just begun.
According to BitPay CCO, the current rally in Bitcoin is driven by fundamentals. Which is in contrast to the price collapse last year and 2017’s bull run;
The CCO of BitPay added:
“The recent downturn last year and the upturn before that two years ago was not driven by fundamentals. It was more by hysteria, and you know momentum.”
In a BitPay review, the current rally owes a lot to growing institutional adoption. This include firms like Facebook, Square, Fidelity, AT&T, and JPMorgan.
According to Singh, the involvement of firms such as JP Morgan, Square, Facebook, AT&T, etc. is a clear demonstration that cryptocurrency has real use cases all over the world. The chief commercial officer suggested that Facebook was probably working on peer to peer payment platform regarding its foray into cryptocurrency.
“I think they are trying to make probably like an international Venmo where you can send money throughout the world using Facebook Messenger or whatever using digital currency that’s backed by the U.S. dollar.”
BitPay CCO also added that other tech giants would want to copy Facebook. As per the BitPay’s chief commercial officer, Facebook’s move will significantly benefit the cryptocurrency sector. This is because it will legitimize the Bitcoin space making it hard for regulators to ignore the industry. Additionally, it will introduce cryptocurrencies to billions of Facebook users worldwide.
The commercial officer suggested that Facebook’s move might encourage other giant tech houses to enter the Bitcoin space.
Last week, JPMorgan strategists wrote that the price of Bitcoin had increased beyond the perceived value. They warned that the divergence between the cryptocurrency’s perception and the actual value had signalled its value in 2017.
Do you think the move by AT&T, JP Morgan, etc. will help boost the Bitcoin price rally?
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