Investors Focus On Btc As “Digital Gold,” Not Payments: Blackrock Exec

What Happened

Institutional investors are treating Bitcoin primarily as a store of value, not a future payments network.

“For us, and most of our clients today, they’re not really underwriting to that global payment network case,” he said, adding that the payments thesis is viewed as “out-of-the-money option value” rather than a core investment rationale.

ARK Invest CEO Cathie Wood recently said that the rapid growth of stablecoins is the main reason she reduced her 2030 Bitcoin price forecast.

Market Context

“Stablecoins have been hugely successful in the payments sector,” he said. “They have massive product market fit as a way of moving value around efficiently.”

According to him, stablecoins are poised to expand their reach well beyond crypto trading and DeFi into retail remittances, corporate cross-border flows and even capital market settlement.

His comments landed as traders continue debating whether the market has already seen capitulation following Bitcoin’s slide from its October peak near $125,000.

Why It Matters

Bitcoin may inspire bold visions of a global payments network, but that’s not what is driving the bulk of institutional money into the asset today, according to Robbie Mitchnick, BlackRock’s head of digital assets.

Stablecoins are rapidly gaining ground in payments, prompting analysts like Cathie Wood to trim long-term Bitcoin forecasts.

He noted that significant progress would be needed across Bitcoin’s scaling stack before such a shift could occur. “A lot needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible,” he said.

His comments follow an August 2024 report from Galaxy Research, which argued that most Bitcoin layer-2 networks, especially rollups, may struggle to remain viable over time despite being promoted as a solution for cheaper, faster transactions.

Mitchnick added that Bitcoin might find a foothold in retail remittance use cases, but he still considers that outcome speculative for now.

Wood, who once projected BTC could hit $1.5 million by the end of the decade, said that stablecoins have taken over some of the roles she previously expected Bitcoin to dominate.

She now sees that long-term forecast dropping by roughly $300,000.

As reported, Bitwise researcher André Dragosch has warned that Bitcoin may still have room to drop before hitting its true cycle bottom, pointing to a “max-pain” zone between $73,000 and $84,000.

According to Dragosch, Bitcoin’s final bottom is “very likely” to form somewhere within this band.

Details

Key Takeaways:

Mitchnick says Bitcoin’s payments role remains speculative and would require major scaling progress to become practical.

Speaking in a podcast interview released Friday, Mitchnick said large asset managers’ clients remain far more interested in Bitcoin as a store of value than as a future payments rail.

BlackRock Exec: Bitcoin Payments Use Case Still “Highly Speculative”

Mitchnick didn’t dismiss the possibility of Bitcoin eventually gaining traction in payments but said that narrative is still “a little bit more speculative.”

While Bitcoin’s payment future remains uncertain, Mitchnick highlighted that digital assets are already transforming money movement through stablecoins.

His views echo a growing industry conversation about stablecoins outpacing Bitcoin in the payments race.

Bitcoin Approaches ‘Fire Sale’ Zone

He argued that this range represents “fire sale” levels tied to the cost bases of major players such as BlackRock’s IBIT ETF at $84K and MicroStrategy’s latest purchases near $73K.