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Forget Bitcoin lattes. BlackRock’s digital asset chief, Robbie Mitchnick, reveals a surprising truth: the big players aren’t eyeing Bitcoin for your daily coffee run. Their investment decisions hinge on something far grander than transactional utility, signaling a divergence from mainstream crypto narratives.
“The old global payment network argument? It’s largely irrelevant now,” Mitchnick declared in a recent YouTube podcast, suggesting a significant shift in how his firm – and many clients – are assessing risk.
“That’s sort of maybe out-of-the-money-option-value upside,” Mitchnick said.
While not ruling out Bitcoin’s future as a ubiquitous payment system, he tempered expectations, describing that outcome as “more speculative.” Currently, investor fervor is primarily fueled by Bitcoin’s potential as “digital gold,” a modern store of value.
“A lot needs to happen” for that to change, says Mitchnick
“The dream of Bitcoin as everyday currency hinges on solving its scaling problem. Lightning Network is one piece of the puzzle, but is it enough? Galaxy Research threw cold water on the hype in August 2024, questioning the long-term viability of Bitcoin layer-2 “rollups” – a popular approach to making Bitcoin transactions faster, cheaper, and more decentralized. Are these solutions a fleeting fix, or the future of Bitcoin?”
Mitchnick lauded stablecoins as a “smash hit” in the payments arena, emphasizing their “massive product market fit.” He portrayed them not just as another option, but as a game-changing tool for streamlined value transfer.
Robbie Mitchnick spoke to Natalie Brunell on the Coin Stories podcast. Source: Natalie Brunell
Imagine a world where moving money is as effortless as sending an email. That’s the promise of stablecoins. They’re not just for crypto enthusiasts anymore. Envision instant international payments for businesses, streamlined remittances reaching families across borders in seconds, and capital markets settling trades with unprecedented speed. Stablecoins are poised to revolutionize finance as we know it, unlocking efficiency and accessibility on a global scale.
“While Bitcoin’s potential ripples across the financial landscape, one expert sees its most immediate impact in retail remittance – payments sent home by individuals. He isn’t dismissing Bitcoin’s future in other areas, but admits broader applications remain a longer shot. “It’s a tantalizing possibility, no doubt,” he muses, “but betting on it now? That’s still firmly in ‘high-risk, high-reward’ territory.”
Stablecoins are ‘scaling faster’ than expected
Cathie Wood of ARK Invest recalibrated her 2030 Bitcoin forecast, pointing to stablecoins’ unexpectedly rapid ascent as the key driver. Is this a sign of seismic shifts within the crypto landscape, or merely a course correction on a long and winding road to Bitcoin dominance?
“Stablecoins are usurping part of the role that we thought that Bitcoin would play,” she said.
Related: Bitcoiners lose their mind after Scott Bessent walks into a Bitcoin bar
Cathie Wood, once a Bitcoin bull with a $1.5 million price target for 2030, is hedging her bets. The rise of stablecoins, now absorbing use cases she envisioned for Bitcoin, prompts a recalculation. Is a $1.2 million forecast the new reality?
“The real revolution? Emerging markets. They’re forging a new financial landscape, and savvy US institutions are finally taking notice of these innovative payment systems.”
By 2030, say goodbye to fiat? Tether’s co-founder, Reeve Collins, predicts a seismic shift, envisioning a future where every currency transforms into a stablecoin, fueling a complete on-chain revolution of the financial world. (Cointelegraph, September)
Magazine: Bitcoin whale Metaplanet ‘underwater’ but eyeing more BTC: Asia Express
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