Topic: Explain me the result of Bakkt on Crypto like I'm a child (Read 390 times)

To answer in a really simplified way (if I understand it right)
Bakkt will be the first trusted/legally accepted 3rd party who will link companies/people with bitcoin, solving the problem of the big investing funds and other investors who are not familiar (and in the future don't want to be familiar) with bitcoin and just want to trade it.
This is not the original peer-to-peer version of the usage of bitcoin but if we need this for mass adoption and acceptance, well, let's see how it will happen...

Perfect  . Somehow 90% of the people who answered didn't focus on the layman part and still explained it like everyone is explaining it... using unnecessary terminology.

Appreciated!

In a layman's sentence, Incase you get confused with the frequently mentioned- institutional investors i.e the wealthy or filthy rich people who in our society who want to also get involve in crypto but needs a more secured platform that suit their standard, this is a platform where the creme de la creme do their transactions with digital currency, hope this is babyish enough  

It is unlikely that this will somehow affect the price of crypto, but the number of new traders will definitely affect

Aside from making it possible for financial institution entering the market on their platform BAKKT is actually pushing things for mass adoption. They are also made available for the consumer side in terms of storage and payment process, the thing is for this to make it work I know that they are already reaching out to big establishments such as Starbucks and Microsoft it is still not clear on what their partnership is all about but I think their is a possibility that its about cryptocurrencies being accepted into their businesses. If BAKKT makes it possible to simplify the process for crypto payments then mass adoption would start quickly with their platform.

It seems to be a revolutionary change if everything is going as it is expected. The cryptocurrency trading platform Bakkt, promises Bitcoin futures with physical supply of the cryptocurrency. Bakkt futures can bring the market back to life. Let us watch what is going on in reality - the market fluctuations are close to zero now: all are waining for this Bakkt to affect the market.

Direct question, is Starbucks accepting Bitcoins for them to keep in their own wallets or not? Because you didn't answer the question.


I believe so too.

It's happening today! Let's see what the impact will be, very curious

starbucks doesn't accept it directly but you can pay at the counter with the spedn app. you load the app with crypto, pay at the counter with QR code, and gemini converts the transaction value on the back end.

i bet the bakkt partnership will work the same way. like bitpay 2.0 for brick and mortar merchants.

Lots of answers already for it you can read them through their site though.

It could have at least effect on bitcoin not all cryptocurrency since only bitcoin will be accepted on the platform, if I'm correct.

Price may increase a bit and not that high (but higher is better though) because of the impact from institutional investors that will give them the freedom to trade/invest BTC on the platform.

According to the new bakkit will launch tomorrow. I'm also interested in knowing about @Bakkit.

OP,you should ask this question in the r/ExplainlikeI'mfive subreddit or Reddit.
Most people here fail to explain it so simplistic.I'm not the biggest Bakkt believer,but all those threads related to Bakkt are flooding the forum again for no reason(the Bakkt launch tomorrow isn't a big deal).
I hope that Bakkt will the bitcoin price to hit the moon,but I'm skeptic(or realistic) about it.

alot of people wonder about starbucks involvement and think of them as just a retailer staffed with barrista's who are just trained to make throthy coffee..
what most people dont know or think about is that starbucks are actually huge players in the commodities market.
think about it. they are the largest international trader of coffee bean commodities.
there corporate offices specialise in knowing how the stock exchange works, what influences it and how to trade within it both as a supplier and buyer

to starbucks, bitcoin is a safer asset to manage, they dont have to worry about costly distribution(trucks,boats) dont have to worry about warehousing, dont have to worry about seasonal changes(sun/rain) affecting their holdings, dont need to pay farmers. its just trading and concentrating on trading and not that other stuff

also starbucks was and is a partly poker player and not the 'house' in regards to coffee beans as they are partially on the receiving end of bad seasons and boating accidents, mold, bad yields, etc. but with bakkt they get to be more of the 'house' meaning less risk for them as all they are facilitating is the trading gateway and taking a cut of the trade fee's without the hassles mentioned above. as the old addage says the house always wins

Best explanation I've seen so far! Finally someone who breaks it down in simple terms . Thanks!

bakkt is a big deal because its futures markets are basically the first federally regulated avenue for institutional buying/selling of real bitcoins. because they are physically settled, there will be real arbitrage with the spot market, meaning that institutional demand via bakkt could actually drive the spot market upwards. compared to CME cash settled futures, which are basically just a CFD market that has no effect on spot price.

it's also a big deal because they are the first legacy giant to enter the institutional custody market.

i don't think the launch in 2 days will necessarily affect prices, but demand from institutions trading on bakkt eventually will.

Bakkt would enable more institutional investors in Bitcoin market and push it towards broader regulation. At least that is the way I see it. As a consequence more adoption is expected and some also think that might increase the price.
But I don't have too big expectations and I will form entirely my opinion at the moment Bakkt comes into force, so next week much more should be more clear.

It is possible but not certain. We don't know how many investors will Bakkt actually have. It is the talk of the town but it's the news mainly among current bitcoin holders and small fish thinking of buying. We don't know if institutions are gearing up for investment.

If I were a CEO of a big company looking to invest I'd wait and see how it all develops before entering BAKKT with a lot of money and putting my whole company at risk.

I did see the Starbucks name mentioned, and I'm wondering what their involvement with Bakkt is.  They don't actually accept bitcoin as payment for their products, do they?  I've not been in a Starbucks in quite a while, but I also haven't read anything about that on the forum aside from some speculation that they might eventually take bitcoin.

Did a little reading about Bakkt, and my understanding of it is basically everything that was said in this thread.  I tend to think that large corporations and investment firms don't really want to own bitcoin or any other crypto outright--not if they have many millions or even billions of dollars to invest. 

If any of them are even interested in getting exposure to crypto, they're going to do it through options and futures.  And aside from banks and mutual funds and other organizations whose business it is to invest money, I'm not sure who else would be interested in Bakkt.  I don't think it's going to be a hit with small retail investors, but who knows.  I sure as hell don't, but my intuition is telling me this is going to be a good thing for bitcoin.

It seems that Bakkt is the talk of the Crypto Town now, Looks like bull season will start with this Bakkt launch then the Bitcoin halving approaching.
Is it okay to say that it is possible to see a new ATH again for bitcoin?

Bakkt is a entry point for big institutional investors to enter the Bitcoin trading market. So these traders do not want to bother with securing millions of dollars worth of coins, they just want to buy and sell coins on a secure platform. Bakkt hold the coins for them in a secure warehouse and they just buy and sell these coins from there.   

The impact for other Bitcoin users are more demand for coins and a subsequent price increase for coins on the open market. At first it might not have a huge impact, but if there are interest from institutional investors, Bakkt will have to buy more and more coins to provide for that demand.