Robbie Mitchnick, who leads digital assets at BlackRock, stated that Bitcoin’s future as a common currency remains uncertain. He noted that major asset managers do not view Bitcoin’s application in daily transactions as a factor influencing their investment decisions.
“I think for us, and most of our clients today, they’re not really underwriting to that global payment network case,” Mitchnick remarked in a podcast interview released on Friday. Translation: Most asset managers are not considering Bitcoin for daily transactions.
He explained this doesn’t imply Bitcoin won’t find widespread use in payments eventually, but it is more of a speculative scenario at this stage. Investors are primarily focused on Bitcoin being perceived as “digital gold” or a store of value.
“A lot needs to happen” for change, says Mitchnick
Mitchnick further elaborated:
“There’s a lot that needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible.”
In August 2024, Galaxy Research pointed out that Bitcoin layer-2 scaling solutions like “rollups” might face sustainability challenges, despite their effectiveness in keeping transactions inexpensive and rapid.
Mitchnick highlighted the success of stablecoins:
“They do have massive product market fit as a payment instrument as a way of moving value around efficiently.”
He asserted that stablecoins could expand their utility beyond the crypto trading realm to retail remittances and corporate transactions.
In his view, Bitcoin might be better positioned to compete in retail payments rather than in other sectors, but acknowledged the uncertainty surrounding it.
Stablecoins ‘scaling faster’ than anticipated
Cathie Wood, the CEO of ARK Invest, recently noted that the rapid scaling of stablecoins contributed to her decision to lower her Bitcoin price projections for 2030. She shared:
“Stablecoins are usurping part of the role that we thought Bitcoin would play.”
Wood adjusted her forecast for Bitcoin’s price from $1.5 million by 2030, accounting for a potential decrease of around $300,000 due to stablecoins fulfilling many roles originally poised for Bitcoin.
She emphasized the potential of emerging markets, stating that institutions in the U.S. are increasingly eyeing new payment systems.
Reeve Collins, co-founder of Tether, asserted that all currency might transition to stablecoins by 2030, signifying a broader shift towards blockchain-based finance.
