Leading asset managers indicate that most clients are not yet viewing Bitcoin primarily as a daily payment option. Instead, investors remain largely focused on its role as a store of value, a trend that shapes current institutional sentiment and investment strategies around digital assets.
Key Takeaways
- •Most asset managers currently see Bitcoin as a digital gold rather than a daily payment method.
- •Significant technological advancements are needed to make Bitcoin viable for widespread payments.
- •Stablecoins are gaining traction and expanding beyond crypto trading to mainstream financial transactions.
- •Expert opinions suggest the future of stablecoins could reshape the global financial landscape by 2030.
Institutional Viewpoints and Technological Challenges
Robbie Mitchnick, BlackRock’s head of digital assets, emphasized during a recent podcast that most investors are not considering Bitcoin as a payment tool. Instead, they see it as a form of “digital gold,” focusing primarily on its potential as a store of value. “Most of our clients today aren’t backing that global payment network case,” Mitchnick stated, adding that this scenario remains “more speculative” for the near future.
He highlighted that for Bitcoin to become an effective payment solution, several obstacles must be addressed. These include scaling solutions such as Bitcoin’s Lightning Network and other Layer-2 technologies. Despite these advancements, research from Galaxy suggests that many Layer-2 solutions, like rollups, may face sustainability issues long-term, especially in terms of maintaining low costs and decentralization.
Meanwhile, Mitchnick noted the success of stablecoins in the payments space. “Stablecoins have proven highly effective for moving value efficiently and have vast potential in retail remittance, cross-border transactions, and capital market settlements,” he explained.
This perspective aligns with observations from industry leaders like Cathie Wood, CEO of ARK Invest, who recently indicated that the rapid scaling of stablecoins is challenging her previous Bitcoin price forecasts. Once projected to reach $1.5 million by 2030, Wood now suggests trimming that target by approximately $300,000, citing stablecoins’ expanding use cases as a key factor.
Additionally, Reeve Collins, co-founder of Tether, anticipates that by 2030, “all currency” could convert into stablecoins, signaling a major shift towards onchain financial transactions. Such developments underscore a broader movement towards stablecoins as a foundational element of future financial infrastructure, potentially exceeding Bitcoin’s current role as a store of value.