BlackRock points out that the true value of Bitcoin lies in its function as "digital gold"

From the latest interview with Roby Mitchnik, Head of Digital Assets at BlackRock, a major shift in perception of Bitcoin among investors at one of the world’s largest asset management firms has become evident. For many investors, the appeal of Bitcoin lies not in its use as a daily payment method, but rather in its function as a “digital gold” for value preservation.

Investor Focus on “Digital Gold” Functionality

According to BlackRock’s client analysis, when making investment decisions about Bitcoin, the vast majority of investors almost do not consider its payment capabilities. Instead, it is increasingly viewed as an asset capable of preserving value over the long term, similar to gold. This recognition of Bitcoin as “digital gold” has a significant impact on institutional investors’ strategies, with a growing tendency to prioritize long-term holding over short-term trading.

Challenges and Technical Hurdles to Bitcoin as a Payment Method

Meanwhile, Mitchnik pointed out that many issues still need to be addressed for Bitcoin to become a mainstream payment tool. Without advancements in scaling technologies and the Lightning Network, establishing Bitcoin as a practical means of payment remains difficult. These technical challenges highlight the gap between Bitcoin’s original design intent and the actual market demand.

The Future of Payments Enabled by Stablecoins

In contrast, stablecoins are achieving remarkable results in the payments sector. By pegging their value to fiat currencies, they eliminate price volatility risks and fully meet market needs as an efficient means of value transfer. BlackRock is further evaluating the potential applications of stablecoins, and it is expected that practical use cases will expand beyond traditional cryptocurrency trading and DeFi, including personal remittances, inter-company transactions, cross-border transactions by multinational corporations, and settlement activities in capital markets.

From international remittances to corporate payments, the scope of stablecoin utilization is rapidly expanding, establishing itself as a new payment solution that could replace traditional financial infrastructure. BlackRock’s analysis suggests that Bitcoin as “digital gold” and stablecoins as practical payment tools will serve different roles within the cryptocurrency market, pointing toward a diversified future for digital assets.