Bitcoin: Why Bakkt By ICE Is Bigger, More Powerful And Capable To Take Bitcoin Price To Infinity And Beyond…Whether We See An ETF Approval Or Not
If you need a new reason to believe in the potential of Bitcoin price rocketing out to Space, this may renew your faith in Bitcoin.
In my opinion i really felt the market overreacted to the news of some ETF rejections,
Although the fate of CBOE’s etf is yet to be determined, and they are very likely to get an approval(due to them being a heavyweight financial institution)
But even if that happens, the effect on the price on Bitcoin will most likely be temporal,
As we witnessed during the short lived bull-run that happened when the Bitcoin futures came into fore.
I believe Bitcoin is due for a long term relationship with institutions, merchants and mass adoption.
And it appears that Bakkt like the Biblical Moses is ordained to take us to the Promise land.
In my last article(5 reasons a bitcoin etf maybe approved), I provided reasons i believed could lead to a Bitcoin ETF proposal approval by SEC,
And i made a claim that something even bigger than an ETF approval has already happened,
Something that should really get the crypto community really excited, because it is something that we have all being waiting for.
Something that can take Bitcoin to the moon with no pullbacks(permit me to exaggerate)
And that something my friends is no other than Bakkt by ICE.
For a long time the buzzword in crypto community is ….institutional money….institutional money…institutional money.
It is believed that their coming into the space will bring immense value to cryptocurrency ecosystem and spur mass adoption..
Problem
But there are 99 problems to this actualization ……..and Trump aint one(for now, jokes).
They are actually fewer than 99 problems, and it borders largely on trust.
Institutional money don’t trust Bitcoin, because they believe they lack regulated, and efficient exchange for trading,
And another problem is that the Bitcoin ecosystem lacks a safe and regulated storage mechanism big enough to absorb and safely keep big institutional money.
So here comes Bakkt by ICE to the rescue….
But before i delve into the details of their rescue mission, lets bring ourselves to be familiar with Bakkt.
What is Bakkt?
Bakkt is a global regulated ecosystem for digital assets created by ICE(Intercontinental Exchange not to be confused with America’s immigration agency), and is also a parent company of New York’s stock exchange(NYSE).
ICE is the second largest owner of financial exchange by worldwide revenues, and they are leaders in futures and commodities(sugar, cotton, coffee).
Additionally, ICE futures Europe is the dominant global marketplace for Brent crude which has served as the world’s global oil price benchmark.
You will agree with me that they are a big big big deal!!!!!
To further prove their commitment to the crypto ecosystem, in 2015 they invested in Coinbase.
Now back to their mission…
According to the Kelly Loeffler(Ceo of Bakkt) Bakkt is designed to enable consumers and institutions to seamlessly buy, sell, store and spend digital assets. Formed with the purpose of bringing trust, efficiency and commerce to digital assets, Bakkt seeks to develop open technology to connect existing market and merchant infrastructure to the blockchain.
In simple terms, we can say that:
- They plan to move retail payment from credit card to bitcoin payment.
- They plan to implement the same protection for bitcoin as other traditional assets such as stocks, bonds, commodities,
- Finally they want to open the door for a large amount of institutional money to flood the crypto space by creating the infrastructure that will support and get them the guarantees they want.
Solution
So how does Bakkt plan to bring in institutional money.
They plan to these through a number of ways:
- Bakkt will work with companies that include BCG, Starbucks, Microsoft and others, to create an open ecosystem that supports growing needs in the ~$270 billion digital asset marketplace.
- Bakkt is expected to include federally regulated markets and warehousing along with merchant and consumer applications.
- As an initial component of the Bakkt offering, Intercontinental Exchange’s U.S.-based futures exchange and clearing house plan to launch a 1-day physically delivered Bitcoin contract along with physical warehousing in November 2018, subject to CFTC review and approval.
Here is a simple explanation as to how their 1 day Bitcoin works,
Lets say a company tries to buy a product from Japan the old traditional way would be to transfer $Usd and the broker or dealer will trade it for Yen,
Then that gets sent to the buyers bank, which will take about 2 days for transactions to be completed,
Then it finally goes into the sellers bank account and they are fees and interests deducted from the total amount.
The new way with Bitcoin
But the new way Bakkt is proposing with bitcoin is very simple and straightforward ,
the payment goes from the buyers vault account directly to the sellers vault account all in a really fast and low fees manner.
Conclusion
This new way of international payment will greatly simplify the movement of global money in a fast and efficient manner,
and generating giant trading volume by institutions that will drive the value of Bitcoin to the moon.
This has the potential to make Bitcoin the first worldwide currency.
