Stephen Pair, the CEO of cryptocurrency payment service BitPay, has recently revealed he believes a big part of what drives bitcoin’s price are investors speculating on it, while a small part is the actual utility of the cryptocurrency.

During an interview on CNBC’s “Squawk Box,” he was asked about whether he thinks bitcoin is currently close to its “fair value,” or whether he believes the cryptocurrency is currently undervalued. He stated:

It’s hard to say. 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 that price is the actual utility, and that’s what BitPay is focused on, using the platform and delivering products to our customers that they find valuable

Next, he was asked about comments made by BitPay’s chief commercial officer (CCO), who revealed he believed bitcoin could move up to $15,000 or even $20,000 next year once traditional incumbents entered the market with their own products. The interviewer asked whether these are the factors that’ll help push BTC’s price up.

Pair responded that there can be various catalysts pushing BTC up, and “not just ETF adoption or ETF launches.” He noted BitPay processes over $1 billion in cryptocurrency payments a year, helping crypto adoption grow and, subsequently, push prices higher.

As for blockchain technology, he claimed he’s still confident in its potential, as he believes traditional databases will, over time, start adopting blockchain-based solutions. Per his words, cryptocurrency is just one of the potential uses of blockchain-based databases.

BitPay’s CEO On The Future of Blockchain Tech

He further revealed BitPay is building a platform for a future in which “all or most digital assets will be issued on a blockchain, and then most payments will be conducted on a blockchain.” As for cryptocurrencies being used for everyday transactions, he pointed to a three to five year timeframe.

This, as he believes fiat currencies like dollars and euros may also be issued on blockchains in the future, as well as “all kinds of digital assets.” Notably, Pair’s comments come as the crypto ecosystem has been enduring a nearly year-long bear market that saw the value of most cryptos drop significantly.

Bitcoin, the flagship cryptocurrency, is currently trading at about $3,200 after falling nearly 2.5% in the last 24-hour period. Last year, it reached a high near $20,000.

Bitcoin's price performance in the last 24-hour period

Notably Tom Lee, a bitcoin permabull and the head of Fundstrat Global Advisors, has recently claimed he believes the market is wrong about BTC, as the cryptocurrency’s fair value, according to Fundstrat’s model, is “between $13,800 and $14,800.”