We’re going to take a look at Bakkt and we are going to take three important topics. Firstly, what are the benefits of Bakkt. Secondly, we’re going to be looking at how can Bakkt affect the future of cryptocurrency? And thirdly, we are going to be looking at how you as an investor in the future can be best placed to benefit from Bakkt.
Before we discuss the important topics of Bakkt? Let’s first dive into the question “what is Bakkt?”
“The goal of launching Bakkt is to develop an open ecosystem that can support the growing needs for digital assets in the market.”
Bakkt is an idea developed by “Jeff Sprecher” who is the director of the Intercontinental Exchange or the “ICE” and is also an operator in the Global Stock Exchange Services. Bakkt will also work in close relation with well-known companies in the fields where we experience growth in need of consumer Fintech. Essentially, one of the things that Bakkt is looking to do is work with firms to actually have adoption of cryptocurrency, allow firms to be a utilized cryptocurrency in a day to day businesses. Business giants include Microsoft, Starbuck, and the BCG, some of the investors into Bakkt include; the Galaxy Digital, Pantera Capital, Horizons Ventures, the Eagle Seven, Fortress Investment Group. We’re looking at big players involved and big people looking to introduce cryptocurrency into the wider market. So we’re taking a look at who’s involved at Bakkt.
Let’s now have a look at what the benefits of Bakkt are of this institutional platform. First of all we’re going to look at easy pay using crypto, one of the things that Bakkt introduced is allowing adoption of firms to actually utilize cryptocurrency. So, they can allow easy pay using crypto, so Bakkt work is mode of payment for customers in different fields, it will help them make payments using crypto in their shopping, and this will accommodate everything from Starbucks cup of coffee, to computer accessories and many others.
This is excellent news, we really need to see a wider adoption of cryptocurrency. We all know that adoption is happening but at a relatively slow pace. One of the reasons why Bakkt is going to be making an impact to this area if we are looking at such big global players, and when you see big players coming into the cryptocurrency market, that is when others will surely follow. If we start asking people like in Starbucks and Microsoft and other firms, and start using crypto as an everyday payment method that is going to assist other people to get involved.
The next thing we’re going to look at is the regulated custody service. Another big talking point about Bakkt is the custody services they offer. This will allow secure storage of Bitcoin. One issue that many firms have is actually allowing Bitcoin to be or where they are going to store them and can it be actually be stored safely from them? Reasons why many institutional investors are not involved in this space, they simply do not have a safe way of storing their crypto. The reason why investors are so important and get his point across, because they have all insurance policies available for these investors to get involved in. We’re looking at big multinational company, putting money into cryptocurrencies, they need to have insurances but their money is safe. Something they don’t have if they hold the private keys, although you might want to hold the private keys as individual investor, these larger companies need more secure benefit.
The regulatory custody services that Bakkt offer is going to be huge for the capitalist market. So, it’s good to know that Bakkt will offer institution to a scalable trading platform, one that can grow so we can have more and more interested investor getting into the market and that you’ll be able to keep up with that volume and also be able to trade as well. Obviously, we’ve got big names behind Bakkt, which are going to help more people come into the market. Bakkt development has a support of the “ICE”, there are the owners and the operators of the New York Stock Exchange Market, therefore means that Bakkt has a strong foundation and consequently worth all the risk.
We are also looking at improved efficiency, Bakkt will also help increase efficiency and confidence in using digital assets in the field of commerce. This will lead to mass adoption, we have these large companies get involved in cryptocurrency, but it will help towards mass adoption. Don’t think that it will instantly happen, but will be more overtime, so don’t expect suddenly markets to go absolutely skyrocketing when Bakkt has been introduced, but we’ll come onto that a little bit later.
So, over capitalization of digital assets, Bakkt has a vast potential to ensure full recognition of digital assets and to enhance their use in commerce as result, this will have a positive impact on the overall cultivation of digital assets in the market. What does this mean for the future of cryptocurrency? We can expect more investors to transfer from OTC market to platforms such as Bakkt. This is the key important point about what Bakkt can do to this market. I’ll explain why this is so important, because we expect investors to transfer from OTC markets to platforms such as Bakkt, ask yourself why do people want to use OTC markets?
Well, the reason why they want to use OTC is they want to purchase large amounts of cryptocurrencies, and if they are going to do that by an exchange that’s going to have a big impact on the price if they want to buy a lot of Bitcoin or other cryptocurrency, it’s going to up the price of that, if they tried to buy more and more cryptocurrencies. They have methods that might try to, they might use more than one exchange if oy have money on multiple exchanges and by up to try not to increase the price so much, but it’s very difficult to do.
So what Firms will do or investors and whales would either use OTC markets in order to buy cryptocurrency so they’re just buying from another individual or another firm, and they simply swap over for fiat or another crypto, that’s a purchase they want to make. What we’re going to be seeing, is that people can be wanting to use Bakkt instead of OTC markets. But why would someone use Bakkt instead of OTC? The answer to that is “insurance”, that is the big play here. People wants to have their money safe, secured and insured from people who may steal, and Bakkt is going to offer all of those points in a very nice professional package. Many big people behind Bakkt, so people are going to feel safe with their money, people always look for a strong name. As a result we hope to increase liquidity and reduce volatility for investors, it can also help in increasing ETF approvals if they see Bakkt coming into the market and introducing more scalability, more firms getting involved and more security coming into this market, it may actually help the SEC get involved and pass that proposal.
Recently, it’s been announced that Bakkt will delay the release of its future products even further. Release date has been move past January 24, 2019, now the release date is uncertain. New report claims that the new date will be announced shortly so we are getting closer and closer to that date.