Is Bakkt just what crypto needs right now? Is it about that time that bitcoin goes mainstream? Can Bakkt be the one to take it there? If you want to know the answers to these questions and more about what Bakkt is bringing to the table, continue reading.
What is Bakkt?
Bakkt is a derivative organisation of the parent company of the new york stock exchange, and other exchanges called the intercontinental exchange. Therefore, it has two main objectives it intends to bring to the crypto market; these are as follows ;
1. To encourage the enabling of institutional investors in the bitcoin and crypto market as a whole.
2. To inspire the worldwide adoption of bitcoin and cryptocurrencies at large; by permitting the use of cryptocurrencies as an official mode of payment in the real world.
The purpose of bakkt explained!
Lets elaborate more on the points mentioned above concerning what Bakkt intends to offer the world of crypto.
Before institutions can even consider investing anything into the cryptocurrency market, there are some things that need to be put in place first. First and foremost, regulation must be clarified. If there is no clarity from that perspective, then the whole investment process would just be illegal. Secondly, people need to be able to purchase bitcoin and store them easily as well.
So looking at those 3 points, regulation has already been clarified as the announcement was made that Ethereum and Bitcoin are not securities. Furthermore, when it comes to the easy and safe storage of cryptocurrencies, the solution is being developed by so many companies as we speak; and there are actually some custody solutions available already. That leaves us with the third point, the easy purchasing of bitcoin, Bitcoin ETFs can fix this issue very easily. If the most important points can be solved by bitcoin ETF should we consider which is better for the crypto market, bitcoin ETF or Bkkt?
Bakkt and Bitcoin ETF comparison
On a short term basis, I believe that institutions are better off investing in Bitcoin ETFs. However, Bakkt would have more of an impact than Bitcoin ETFs. Reason being that Bakkt brings market legitimacy as well as Bitcoin adoption which can be pivotal.
The Advantages Bakkt Brings to Crypto
1. As we have already established Bakkt will bring worldwide bitcoin adoption by creating a fast payment method with bitcoin. And adoption is something we can all agree that bitcoin needs.
2. It will also bring fourth the possibility of crypto to fiat exchange; an aspect that will increase liquidity drastically.
3. Bakkt will introduce custodian services which are most beneficial for larger investors as they intensify the security of investor’s funds.
4. A complete government approved and federally regulated exchange as compared to its counterparts.
5. There will also be the physical delivery of futures contracts that will request that parties buy their Bitcoin upon the expiration of the contract.
6. Clients will benefit from the availability of risk management and trading applications on the Bakkt network.
Bakkt is looking forward to bringing together all the benefits of crypto and making them readily available for businesses on one platform. Moreover, it opens up doors to the tokenisation of just about anything. Bakkt will result in a lot of opportunities for large and small investors to participate in the crypto market.
Watch the space!