Bitcoin Still Lacks a Payments Breakthrough

BlackRock has noticed growing interest in Bitcoin, but clients of the world’s largest investment firms still view it primarily as digital gold rather than a tool for everyday transactions. Robbie Mitchnick, the head of digital assets at BlackRock, explained in a YouTube interview that investors aren’t basing their decisions on the idea of Bitcoin becoming a global payment network. He described that scenario as an additional—but fairly speculative—upside.

According to Mitchnick, for Bitcoin to realistically compete in payments, the network would need major improvements in scalability, including advancements in technologies like Lightning. He also pointed out that some currently popular solutions, such as rollups, might not prove durable in the long run. Still, he noted that BTC could have a meaningful role in the field of money transfers.

At the same time, Mitchnick highlighted the remarkable success of stablecoins, which already excel at enabling fast and inexpensive value transfers. In his view, stablecoins could expand beyond the crypto ecosystem and become widely used in retail, corporate, and cross-border payments.

The rapid growth of stablecoins is also reshaping forecasts for Bitcoin. Cathie Wood of ARK Invest admitted that their accelerating adoption prompted her to lower her previous 2030 BTC price forecast by roughly $300,000. Meanwhile, Tether co-founder Reeve Collins believes that by the end of the decade, all currencies could exist in stablecoin form.