Bakkti Big Opening in January – Pros and Cons

Martin Weiss: Juan Villaverde is involved in programming and automating his Bitcoin cycle analysis model. So I’ve asked Dr. Bruce Ngil to write today’s story.

Bruce is a respected teacher in Distributed General Ledger Technology (DLT) and has been a leading cryptotechn technology analyst at Weiss Cryptographic Ratings since its inception.

Contrary to most analysts in the field, Dr. Ngil has three strengths: a rigorous discipline in physics, strong experience as a software developer, and deep knowledge of the blockchain. The result is uniquely scientific and 100% objective assessments of both individual cryptocurrencies and the field as a whole.

But before I hand over the microphone to Bruce, I would like to send you an urgent message: Joining our Weiss Cryptographic Portfolio is still open, making $ 439,000 out of every $ 10,000. And now you get $ 350 in free cryptocurrencies. You can find joining and more information here.

Bakkti Big Opening in January – Pros and Cons

Martin Weiss: Juan Villaverde is involved in programming and automating his Bitcoin cycle analysis model. So I’ve asked Dr. Bruce Ngil to write today’s story.

Bruce is a respected teacher in Distributed General Ledger Technology (DLT) and has been a leading cryptotechn technology analyst at Weiss Cryptographic Ratings since its inception.

Contrary to most analysts in the field, Dr. Ngil has three strengths: a rigorous discipline in physics, strong experience as a software developer, and deep knowledge of the blockchain. The result is uniquely scientific and 100% objective assessments of both individual cryptocurrencies and the field as a whole.

Dr. Bruce Ng: Thank you, Martin. Your portfolio strategy could not have come at a better time, especially given what is coming in January:

Baktti opening shot – a project that allows to improve the whole world of crypt.

Bakkt started making waves already in August, and the resulting rumor has not subsided on the web so far.

The reasons for this excitement are clear:

• Bakkt plans to provide institutions with a large-scale and expandable cryptographic exchange platform.
• This includes regulated monitoring for the safe storage of Bitcoin.
• It will become a payment platform that allows consumers to use cryptos to pay for everything – from Starbucks coffee to computer products.
• And behind it is a very big player: ICE – the owners of the New York Stock Exchange

It is said that Bakkt is the one that brings big commercial money to the crypt market and introduces a new bull market. Some financial experts have even suggested that Bakkti may have a greater impact than any Bitcoin Exchange-Traded Fund ( ETF ) that may enter the market.

But will Bitcoin become Bakkt? In other words…

Will Bakkt really become the fuel for the price increase / bull market that everyone in the crypt world expects? Yes…

Is Bitcoin itself really guaranteed, as they say?

Let’s take a closer look …

The Big Names Behind This Project

ICE (Intercontinental Exchange) is one of the most trusted institutions in the international financial world. Not only do they own the New York Stock Exchange, they also own ICE Data Services, SuperDerivatives, TMC Bonds, The Clearing Corporation, the Singapore Stock Exchange (SME) and more.

Last year, ICE earned $ 5.8 billion in annual revenue. They have about 5,000 employees. And their reputation is excellent.

Under the leadership of CEO Kelly Loeffler, Bakkt aims to create a regulated market for Bitcoin and make it a widely used global currency .

At the same time, Baktti’s partners can also play a major role …:

• Microsoft can provide its own cloud infrastructure for institutions to run on the exchange platform and for consumers for the payment platform. Microsoft also offers artificial intelligence (AI) technology. In addition, it is possible that Microsoft Pay will interfere by creating a level of integration with Bakkt.

• Boston Consulting Group is another top-of-the-line partner that can open the doors to multiple Fortune 500 businesses that can help promote the Baktti platform and promote its widespread adoption.

• And Starbucks can play a particularly critical role in bringing Baktti to the masses, helping to introduce it to millions of average consumers.

Are you surprised that Starbucks is also excited about this project? This should not come as a surprise, given that Starbucks is the leading payer with mobile apps in the US (with 23 million users) ahead of Apple Pay (22 million users) and Google Pay (11 million users).

No, the average consumer will not be able to pay for Starbucks Vanilla Latte directly with Bitcoin. Instead, Bakkt turns digital assets like Bitcoin into US dollars, which can then be bought from Starbucks.

Given the variability of crypts, this is logical. But no matter what I had to look at …

23 million Starbucks users get to know crypts like never before!

What’s more remarkable: Baktti’s list of investors includes a group of venture capitalists: M12 (Microsoft’s venture capital division), a subsidiary of Fortress Investment Group, Eagle Seven, Galaxy Digital, Horizons Ventures, Alan Howard, Pantera Capital, Protocol Ventures and Susquehanna International Group.

Bakkti Action Plan

Bakkt comes with its first product, Bitcoin futures exchange, issued 24. January. Although Bitcoin futures already exist on the Chicago Board of Trade (CME) and the Chicago Board Options (CBOE), Bakkt is taking a big step forward: Their futures contracts will be secured by physical Bitcoins at ICE’s Digital Assets Warehouse.

Starbucks is joining forces with Microsoft to launch Bakkt, a cryptocurrency trading platform, soon. Allowing customers to pay for coffee with Bitcoin and other cryptocurrencies.

So, unlike the CME and CBOE Bitcoin futures, which can only be traded in cash, every Bitcoin purchased from Bakkt is added to the deposit – which directly increases demand and, of course, the price. Also, any Bitcoin sold in Bakk will be taken away from storage, which will have the opposite effect.

In addition, Bakt’s futures contracts – all for exactly one Bitcoin (BTC) – will be approved within 24 hours . This means that as soon as you buy a futures contract from Baktti, you will receive a real Bitcoin the next day.

Contracts the size of one Bitcoin can also make such trading attractive to large institutions and speculators, as they create a picture of large trading volumes.

And we suspect that Bakkt is already – or will soon be buying – Bitcoine on the public ( OTC – Over-the-Counter) cryptographic markets in order to add liquidity to its January launch.

Then Bakkti’s other products will hit the market.

What are the pros and cons of all this? Let’s start with the downside …

Minuses …

Some crypto investors like to see more institutions in their world. The more purchasing power, the better, they say.

But there are also those who absolutely do not like it.

They are worried that Wall Street may one day start controlling cryptocurrencies once it has gained enough leverage .

They are afraid of high – risk cryptographic derivatives – the same ones that helped create 2008. This created a fertile ground for the invention of Bitcoin.

Bitcoin, they say, had to be part of the solution – not a new part of the old problem.

And, they continue, it could get worse: Large Wall Street agencies could use derivatives to manipulate or raise the price of Bitcoin and other cryptographic assets. They may also use the Bitcoine they hold to influence other investments.

Some crypto supporters hate these opportunities because they run counter to the fundamental principles of cryptocurrency. The bare idea of something like “cryptocurrency” causes chills in them.

What is Baktti’s answer? “Calm down.” They promise that there will be no abuse of power, collusion or dirty deals . But is that enough to stop other derivatives experts from doing so in the future? We will see.

Pros…

It is difficult to imagine a scenario where Bakkt does NOT bring with it a flood of cryptocurrencies by large institutions. And the consequences can go far:

Increase in trading volumes. Currently, CME and CBOE trade in combined futures is only 9,000 Bitcoins (BTC) per day. This is nothing compared to stock exchanges – their daily figures are somewhere around 1.6 million Bitcoins.

If Bakkt comes out, this volume may not only simply increase by large institutions, but will soon be able to compete (if not exceed) the volumes of trading on stock exchanges.

Another plus: We expect many institutional investors to move from opaque OTC markets to more transparent platforms such as Bakkt. The result: More liquidity and less volatility for cryptographic investors.

ETF Approval. At the moment, we can already count 10 crypt ETFs that have not been approved by the SEC (US Securities and Exchange Commission). And there are usually two reasons for this: There is no reliable price information and it relies too much on future markets. But Bakkt could solve both problems by making free future ETFs such as VanEck / SolidX WTF 2019. in.

Storage. Bakkt is solving the deposit problem, which is why large institutions have so far refrained from investing in Bitcoin. With Baktt, approved members no longer have to bother dealing with Bitcoin themselves.

Regulated ICO (Initial Coin Offering). Bakkt offers corporations the opportunity to raise capital through ICOs. And in the next round, we hope to see more clarity in them, especially as regards the distinction between securities tokens and tokens used .

The tokens you use are something like bonus points or promotional coupons. They are almost always very bad investments. By comparison, securities have a number of important safeguards that investors expect, for example, in the case of ordinary shares.

Most people don’t know that. They don’t even know how to distinguish tokens. It is hoped that Baktt’s entry into the market will help pave the way for the regulation of securities and their introduction to the masses.

Warning: There is no guarantee that Bakkt will increase prices immediately. In fact, as far as we understand, large institutions have been buying Bitcoine for a year now – mostly from OTC markets, which is not very much in the picture. And that purchase was clearly not enough to stop Bitcoin from falling below the $ 5,800 mark.

In the long run, the outlook is much clearer: Projects such as Bakkt can greatly increase the liquidity, stability and overall size of the cryptocurrency market. They can help create a trillion-dollar global market that surpasses everything.

Best wishes,

Bruce

Article – Weiss Ratings

Translation: Lucreds Plus OÜ