“Bakkt” to the Future
“Bakkt” to the Future
This week, there’s been a lot of buzz about Bitcoin and other cryptocurrencies. In fact, analysts predict that we’re about to see another boom. What’s happening in the volatile world of crypto, and why are people predicting that this will be an exciting month?
(Note: If you’re unclear on exactly what cryptocurrency is, how it works and how to engage with it, you’re not alone. Before reading this, it might help to check into these previous Money Revealed articles: “The Race to Crack the Crypto Code,” and “What the Heck Is Bitcoin?”)
There are whispers floating around that this could be a huge month for crypto. The word on Wall Street is that the main reason for the predictions is the September 23 launch of Bakkt.
What exactly is Bakkt, and why is it making such a big splash?
First of all, a large part of why cryptocurrencies have been unstable investments is that it can be complicated to obtain, store, use and regulate them.
Bakkt addressed these issues in four ways:
Safe and Sound
Bakkt addresses the cyber storage issues by creating a “warehouse” that’s protected by the same cybersecurity tools that are used by the New York Stock Exchange (NYSE). Not only that, Bitcoin deposited in the Bakkt warehouse is protected by a $125 million insurance policy.
Issues with digital “wallets” being hacked have prevented many private and corporate investors from exploring Bitcoin. This should go a long way towards alleviating that concern. The warehouse opened its cyber-doors on September 6, in preparation for the future…
The “Futures” of Trading
Bitcoin futures trading begins on September 23. Working with trusted international regulation and compliance groups, Bakkt is set to start selling “physical bitcoin futures.”
This will be available in over 30 countries. It’ll be overseen and reviewed in much the same way (and by the same entities) in which traditional commodities are regulated.
Crypto, Commerce and Caramel Frappuccinos
Bakkt has partnered with Starbucks, Microsoft, Boston Consulting Group and several other large corporate and investment companies. It may not be seen right away, but the idea is that soon you’ll be able to purchase your caramel frappuccino with bitcoin. While that might not seem like a big deal, it’s the first time a major retailer has taken a step like this in support of cryptocurrency.
In Bakkt We Trust
Finally, Bakkt is committed to transparency and compliance. It will operate in compliance with the Commodity Futures Trading Commission (CFTC) and has already been cleared to do so. They have committed to participating in regular audits and will monitor all crypto deposits and withdrawals.
A Last Look…
Analysts are predicting that steps being taken to regulate and normalize bitcoin will have a very positive effect on the growth of cryptocurrency. Price indicators are pointing towards a boom, and we may see major growth in the months to come.
It’s worth pointing out, however, that even with the move towards regulation, crypto has been notoriously fickle. It’s still new, it’s a complex concept, and enough people lost their shirts in the 2018 Crypto Crash that investors are wise to exercise caution before jumping in. It’s a new frontier, and new frontiers can be risky places.
So, as always, do your research!