BlackRock: Institutional Investors View Bitcoin as Digital Gold, Not a Payment Method

BlackRock's Mitchnick says Bitcoin seen as digital gold, not payment method.

Most clients of the world’s largest asset management firms do not consider Bitcoin’s payment potential when deciding to purchase the asset, according to Robert Mitchnick, head of BlackRock’s crypto division.

He stated that investors perceive the first cryptocurrency as digital gold and a store of value. The asset’s payment capabilities are seen more as an additional option “beyond money.”

This market participant mindset does not preclude Bitcoin from gaining widespread use as a payment method, Mitchnick clarified. However, he described this scenario as “somewhat speculative.”

“To realize [the idea of a transactional system], much needs to be done in terms of scaling the main network, Lightning Network, and other aspects,” said the top executive.

Meanwhile, Mitchnick pointed to the “tremendous success” of stablecoins in monetary operations:

“They truly occupy a huge space in the market as a payment tool, serving as an efficient means of moving funds.”

The head of BlackRock’s crypto division is confident that stablecoins have the potential to expand their applications beyond the crypto ecosystem, encompassing retail, corporate, and cross-border transfers, as well as capital market settlements.

In September, Mitchnick highlighted that digital gold is mistakenly classified as a risky asset, despite its frequent correlation with the stock market.