Intercontinental Exchange, owner of arguably the most important stock exchange in the world, the New York Stock Exchange (NYSE), is introducing a new company, Bakkt. The idea is to weave bitcoin into 401(k)s, credit cards, and retail. The project is getting a lot of hype due in large measure to two very powerful backers: Microsoft and Starbucks. Is this the mainstreaming ecosystem enthusiasts have been urging?
Full article on Bitcoin.com
Full article on Bitcoin.com
The idea of weaving Bitcoin into 401Ks and pension funds is a good idea, if it is done in moderation and you believe in the long0term potential of Bitcoin. I don't see how his idea of Bitcoin Apps replacing credit cards will work. True, credit cards have large fees, but they perform one important function - provide credit. That can't be replicated by Bitcoin apps without charging for it.
A lot of people use them because it's convenient, or because they reaps rewards and cash back. People that pay their balances in full might be persuaded towards BTC payments if the usability, convenience and rewards are there.
The root problem is still that those rewards are paid for by charging debtors high interest and fees. If there's no credit system to fund the consumer incentives to transition away from credit cards, I think companies like Bakkt would have to charge pretty high merchant processing fees.
