Bakkt platform named the conditions that will ensure bitcoin's success and dynamic developmentEndy Callahan
After two delays and 13 months of uncertainty, the Bakkt platform, supported by the Intercontinental exchange, was launched. Is this event really a big breakthrough for the bitcoin market and exchange rate? And what conditions are designed to ensure bitcoin's success and dynamic development?
Bitcoin futures contracts
Bakkt is a company founded in 2018 that allows institutional investors to invest their funds securely in various types of digital resources. On its platform, it provides the opportunity to invest in futures contracts on BTC. This is a contract of sale of two parties with a deferred date, but a fixed price.
The company's goal is to make cryptocurrencies transparent and sufficiently regulated for individuals to use in retail. The introduction of futures contracts will avoid the extreme volatility of bitcoins for people who want to pay them.
Futures contracts are also calculated using us dollar payments, which means traders do not need to support real digital coins. This makes it much easier for less computerized investors who don't have wallets or stock accounts.
Bakkt is an exception to the rule
This platform, which runs physically supported bitcoin futures for transaction participants, is a centralized intermediary between sellers and buyers. In the short time since its launch, its popularity is growing rapidly.
In a broad sense, Bakkt is:
- digital storage;
- clearing house;
- guarantee security Fund.
So far, no one has provided physically supported bitcoin futures. Bakkt does it first. The platform helps its clients to better navigate the issues of the market price of cryptocurrency and insures them against possible risks. The intermediary platform will allow you to safely buy, sell and store digital assets. Bakkt has already partnered with Starbucks to bring bitcoins into everyday payments at the initial stage.
Backt and the price of Bitcoin
Two months after the launch of the Bakkt platform, it broke its own record. In a tweet on the company's page, it is reported that the result of 4443 BTC transactions per day, set on November 27, was 60% higher than the previous day.
Two months after Bakkt's debut, Bitcoin Futures reached a record high. The company's specialists do not miss the opportunity to use this momentum as they approach the launch of Bitcoin option contracts, scheduled for December 9.
Despite this, so far there are significant fluctuations in the market and a tendency to reduce the BTC rate. The cryptocurrency has fallen significantly against the us dollar. Good harbingers are messages like those coming from the Bakkt platform. This may indicate a change in the market situation and the recovery of Bitcoin.
About the pros and cons
The company's core credo is to expand access to the global economy by building trust and uncovering the value of digital assets.
The main "advantages":
- eliminated credit risk;
- elimination of mt gox collapse recurrence;
- no made up volumes;
- trading will be conducted without leverage;
- trade via Dollar and Euro, no stablecoin and surrogates;
- the future will be staged, for a period of one day, not calculated.
Transactions are subject to trading rules, KYC and AML standards, and are controlled by the CFTC.
According to the company's management, it has a separate division that develops new products and services to influence the wider spread of Bitcoin. Bakkt Pay cryptocurrency payment application has been created, which is now in the testing phase. With its help, customers will be able to make payment transactions online and off line using digital money.
However, the sceptics point out the cons of the platform. The platform is centrilized which poses one main problem. As a result, the centralization of the entire cryptocurrency market, and this is a departure from the principles of Satoshi Nakamoto. Many experts argue that centralization will kill the cryptocurrency market. Only time will give the answer.
Embedding in the Bitcoin blockchain
Cryptocurrency markets are experiencing rapid global growth in both scale and complexity. This growth has largely occurred outside regulated markets, which is typical for many emerging asset classes.
Bakkt and bitcoin are positioned as one. The design is a 2-layer Protocol where transactions take place inside the platform without increasing the load on the main network.
The launch of Bakktm Bitcoin Futures contracts on ICE Futures U.S. represents the first futures transactions with CFTC-regulated exchange price discovery and physical delivery. For the first time, price discovery and calculation is done without reference to unregulated spot markets.
Perspectives and reality
The debut of futures on the platform finally took place after many months of delays. The chief operating officer of the Bakkt platform, Adam white, gave a great interview to the portal EJ Insight. In it, he expressed confidence that Bitcoin will become widespread to solve real problems, and as it is now backed physically by futures.
Bacct brings transparency and trust to digital asset markets, expanding access to them for institutions, merchants and consumers. To do this, the platform has a robust regulated infrastructure through which market participants can access secure storage and trading on regulated exchanges.
Referring to the price of Bakkt Bitcoin (USD) futures physically delivered monthly, the contract offers a cost-effective tool to hedge or gain access to PTS without the need for physical delivery or reliance on the unregulated bitcoin spot market.
Meanwhile, the price of Bitcoin today, after the launch of Bakkt, is less than $ 10,000. So far, the launch of the platform has not had a positive impact on the price. Let's hope that BTC will strengthen its position and slowly go up, thanks to the know-how from Bakkt.
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