Robbie Mitchnick, the head of digital assets at BlackRock, shared some interesting insights recently, revealing that clients of the world’s top asset managers aren’t really thinking about using Bitcoin for everyday transactions when deciding on their investments.
“For us, and most of our clients, they’re not really considering that global payment network aspect,” Mitchnick mentioned during a recent podcast on YouTube.
He referred to this idea as “maybe out-of-the-money-option-value upside.”
While he acknowledges that Bitcoin (BTC) could one day be widely used for payments, he sees this scenario as “a little bit more speculative,” emphasizing that investors are currently more interested in viewing it as “digital gold” or a store of value.
Mitchnick: “A lot needs to happen” for changes
“There’s a lot that needs to happen regarding Bitcoin scaling, Lightning networks, and the like to make that a reality,” he explained. Back in August 2024, Galaxy Research raised concerns that many Bitcoin layer-2 networks, especially the popular “rollups,” might face long-term sustainability challenges despite their promise to keep Bitcoin transactions cheap, fast, and decentralized. Read more here.
On the other hand, Mitchnick noted that stablecoins have thrived in the payments arena. “They’ve found a solid market fit as a payment tool for efficiently moving value,” he said.
He also expressed that stablecoins could expand their usage far beyond the crypto trading world and DeFi, reaching into areas like retail remittances, corporate transactions, and cross-border payments.
Mitchnick believes Bitcoin might be better positioned for retail remittances but doesn’t discount other possibilities. “At some point, it could happen, but right now, it’s a more speculative thing to consider,” he said.
Stablecoins are ‘growing rapidly’
In a recent talk, ARK Invest CEO Cathie Wood pointed out that stablecoins are “scaling faster” than initially anticipated, which has led her to reduce her Bitcoin price forecast for 2030.
“Stablecoins are taking over some of the roles we thought Bitcoin would fill,” she pointed out.
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Wood had earlier predicted Bitcoin could soar to $1.5 million by 2030, but with stablecoins now stepping into many of the areas she thought Bitcoin would dominate, she decided it might be wise to adjust her forecast by about $300,000.
“I see a lot of potential in emerging markets, and we’re beginning to notice institutions in the U.S. working on new payment systems,” she added.
Tether co-founder Reeve Collins mentioned in a Cointelegraph interview last month that he expects “all currency” to eventually turn into stablecoins by 2030, as we witness finance mainstreaming onto on-chain platforms.
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