As Bakkt's Release Nears, Can It Be Crypto's Savior? Will ICE's Crypto Trading Platform Push Forward Adoption?
Many people in the traditional finance world and crypto industry are preparing for the launch of the digital asset platform called Bakkt, which will bring forth the first physically-settled bitcoin futures. The launch will not happen until later this week, though Alec Zuipsnys sees the upcoming release as a way for others to get involved with Bitcoin with potentially 100 million users weekly.
What makes this so staggering is that it has been said that there are roughly 35 million cryptocurrency investors but there are nearly 465 million stock market traders – so if you start to tip those scales and give more direct, trusted immediate access through Bakkt's crypto trading platform, there begins a snow ball effect that can be quiet mesmerizing for the bitcoin ecosystem.
Zuipsnys, who works as the chief innovation officer for BlockEdge Capital, spoke on the way that Starbuck’s partnership with Bakkt is helping to broaden the knowledge of Bitcoin. With the implementation of accepting Bitcoin payments, he further suggested that the massive coffeehouse chain was handling up to 25.6 million transactions in a single day. Apple Pay and Google are only reaching 24.5 million and 12.4 million users, respectively, in the same amount of time.
In a Twitter post, Zuipsnys joked,
“Worrying about catching the exact bottom is like trying to pick up a penny in front of a steamroller.”
Starbucks had not planned to accept Bitcoin at the time, but the relationship established with Bakkt propelled it forward. A spokesperson for Starbucks reportedly said,
“It is important to clarify that we are not accepting digital assets at Starbucks. Rather the exchange will convert digital assets like Bitcoin into US dollars, which can be used at Starbucks. At the current time, we are announcing the launch of trading and conversion of Bitcoin. However, we will continue to talk with customers and regulators as space evolves.”
Right now, there are over 14,000 Starbucks stores around the world, serving upwards of 500 customers daily. Projections from a US-based market analysis firm called Trefis indicate that the daily customers can expect to grow to 750 by next year.
They study also showed that the increase mobile payment options, the mobile app, and the expanded food menu would be catalysts for the growth. With no plans to open new stores, the current locations could ultimately reach 11 million customers served daily.
Considering the implementation of Bitcoin, Ziupsnys sees Starbucks’ involvement with Bakkt as easy advertising for the potential use cases of the tokens. However, rather than their payment application being the method, but in the potential use of a stablecoin with Starbucks.
Still, at minimum, just being involved with Bitcoin at all makes it easy for Starbucks customers to gain knowledge through exposure. Even though this is not really new, Ziupsnys tweeted, “I still think it deserves some continued excitement about it.”
In an article with News BTC, the writer believes that the implementation of Bakkt into the industry could be the push that the whole market needs to leave the bear market behind. Not only would a platform with federal regulation make the market more valid to some investors, but it would also open a door for crypto-based exchange-traded funds (ETFs) by solving the issue with a lack of trusted price information.
Kelly Loeffler, the CEO of Bakkt, commented,
“A critical element to price discovery is physical delivery. Specifically, with our solution, the buying and selling of Bitcoin are fully collateralized and pre-funded. As such, our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset. This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage, and cash settlement.”
Realistically, there is a big chance of Bitcoin bottoming out when the launch happens. However, with the connection to Starbucks, it could also be the awareness needed for widespread adoption.