Random thoughts spurred by referenced article:
1) After clarifying that, under current US regulatory regime, Bitcoin is classified as a
commodity, the author goes on to describe requirements for entities dealing in
commodity futures. Relevance? None that i can see.
2) Unless, as seems likely from the article, ICE is planning to be able to engage in partial reserve Bitcoin trading:
"
The federally-regulated exchanges require clearing services that effectively remove credit risk for both the buyer and seller. The clearing house guarantees that the seller will deliver the sugar, coffee, or gold as agreed under a futures contract, and that the buyer will make the full payment. If either fails to perform, it’s the clearing house––which is jointly funded by the trading firms that are members of the exchange and its owner, in this case ICE––that makes good on the delivery or the cash."
We -- the Bitcoin community -- may need to crank up our educational outreach to clarify to the incoming masses that a Bitcoin IOU is not the same thing as a Bitcoin.
3) "By the market close, the ICE clearing house would have arranged to route the cash from the buyer’s to the seller’s bank account, and
the Bitcoin tokens would be en route the to the Bakkt digital warehouse."
4) Article describes txs between parties within the Bakkt system as simple database txs, then later goes on to describe this as 'closely resembling the Lightning Network'. I question they know WTF they are talking about,. Perhaps the ignorant author got snowed by Loeffler, the former ICE marketeer and master of outbound communications?
5) ”Bitcoin would greatly simplify the movement of global money,” says Sprecher. “It has the potential to become the first worldwide currency.” - needs no comment
6) "If Bitcoin became the chief currency for retail, it’s likely that credit cards would disappear.
So would ICE and Bakkt be antagonizing ICE’s main customers, the major banks? Not necessarily. Despite the large fees, banks typically make little money processing purchases, since they mainly return those fees to provide services such as fraud monitoring, call centers, and providing rebates that go to such rewards as frequent flyer miles and rental car discounts. Where the banks make big money is on the interest charged on balances on credit cards. Changing the purchasing system wouldn’t alter the amounts that folks borrow, just where they hold those balances."
Bitcoin credit. Hmm.
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#REPTILIAN AGENDA
