BlackRock’s head of digital assets, Robbie Mitchnick, has suggested that most major asset managers are not viewing Bitcoin through the lens of day-to-day payments when evaluating its role in portfolios. In a recent podcast appearance, Mitchnick emphasized that institutions are largely focused on Bitcoin’s store-of-value appeal rather than its potential as a global payment technology. “I think for us, and most of our clients today, they’re not really underwriting to that global payment network case,” Mitchnick said. “That’s sort of maybe out-of-the-money-option-value upside,” he added. The comments highlight a continued divide between the vision of Bitcoin as digital cash and the practical considerations driving institutional adoption today. Focus Remains on the Digital Gold Narrative Mitchnick explained that the speculative nature of Bitcoin’s payment utility means investors remain more committed to the asset’s “digital gold” narrative. He said Bitcoin may still evolve into a widely used payment tool, but that scenario involves more uncertainty than its role as a store of value. He described the payments thesis as “a little bit more speculative,” adding that institutions prioritize the resilience and long-term investment use case rather than transactional adoption. Significant Scaling Needed for Bitcoin Payments According to Mitchnick, substantial technical progress would be required before Bitcoin could realistically compete with traditional payment networks. “There’s a lot that needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible,” he said. The comments echo broader industry concerns around the future of Bitcoin scaling solutions. Earlier analyses, including an August 2024 report from Galaxy Research, warned that many Bitcoin layer-2 networks — especially “rollups” — may struggle over the long term, despite current enthusiasm around faster and cheaper transaction layers. Other blockchain networks are being used for a variety of real-world purposes, including sending payments and powering online bingo sites. Stablecoins Surging Ahead in Payments Sector While Bitcoin’s payment future remains uncertain, Mitchnick said stablecoins have already demonstrated clear adoption. He described the sector as “hugely successful,” noting that stablecoins offer “massive product market fit as a payment instrument as a way of moving value around efficiently.” Mitchnick said stablecoins are poised to grow well beyond their existing uses in trading and decentralized finance. “Stablecoins have the potential to greatly expand where they are used today, going beyond just the sort of crypto trading ecosystem and DeFi to actually doing retail remittance payments, corporate, multinational, cross-border transactions, and capital market settlement activity,” he said. He added that while Bitcoin could compete in certain payment categories — such as retail remittances — institutional investors still view that scenario as uncertain. “At some point it is possible, but it’s a more speculative thing to underwrite at this point,” he said. Stablecoin Momentum Influencing Long-Term Bitcoin Forecasts The rapid growth of stablecoins has already influenced how analysts model Bitcoin’s long-term value. ARK Invest CEO Cathie Wood recently said that the sector’s accelerating expansion forced her to revise her earlier projections for Bitcoin’s 2030 valuation. “Stablecoins are usurping part of the role that we thought that Bitcoin would play,” she said. Wood previously expected Bitcoin to hit $1.5 million by the end of the decade, but now believes reducing that estimate by roughly $300,000 may be justified given stablecoin adoption. “I think emerging markets are huge in this regard and we’re starting to see institutions in the United States focused on new payment rails,” she said. Industry Leaders Expect Full Transition to On-Chain Money The trend toward stablecoin-based payment systems appears to have strong support among industry builders. Tether co-founder Reeve Collins told Cointelegraph in September that he expects “all currency” to transition into stablecoin form by 2030, reflecting a broader shift toward on-chain financial infrastructure. That outlook contrasts with the more cautious stance on Bitcoin’s payment potential, underscoring how digital assets may take on distinct roles within future financial systems.
