Will the Launch of Bakkt Propel Bitcoin’s Mainstream Adoption?

By Emily Rys | February 26, 2019
Will the Launch of Bakkt Propel Bitcoin’s Mainstream Adoption?

With its launch expected later this week, the wait for Bakkt is almost over. Both the traditional finance industry and the crypto industry have been anticipating the coming of Intercontinental Exchange’s (ICE) new digital asset platform to deliver the first physically-settled Bitcoin futures. Could this be the answer to drive Bitcoin’s mass adoption by the mainstream?

Bakkt CEO Kelly Loeffler said, “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.”

BlockEdge Capital CIO Alec Zuipsnys sees Bakkt as a way for others to get on board with Bitcoin to the tune of possibly 100 million users weekly. There might be some 35 million cryptocurrency investors around, but there are nearly 465 million stock market traders – a staggering potential.

What’s more, Starbuck’s partnership with Bakkt for conversion of Bitcoin payments could really broaden widespread knowledge everywhere of Bitcoin. 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.”

With Starbucks adding on Bitcoin ability, Zuipsnys suggests that the global coffeehouse chain could be handling up to 25.6 million transactions daily. Apple Pay and Google only reach 24.5 million and 12.4 million users respectively per day.

Zuipsnys joked in a tweet:

“Worrying about catching the exact bottom is like trying to pick up a penny in front of a steamroller.”

He sees Starbuck’s collaboration with Bakkt as an easy way to expose and advertise common use cases for Bitcoin to Starbucks customers the world over.

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