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BAKKT
#1
One of the richest people in the world invests in cryptocurrency exchange Bakkt

Bakkt was set up by the Intercontinental Exchange and has completed despite the first financing round. Among these investors is also the 23rd richest man in the world, Li Ka-shing. This is a billionaire from Hong Kong.

With Bakkt, investors can trade in physical bitcoin futures. With bitcoin futures you speculate on the price of bitcoin. Normally a bitcoin future contract is separate from bitcoin, you do not trade in bitcoin itself. That is different at Bakkt. Each bitcoin future contract is covered by real bitcoin, which is kept in the Bakkt Warehouse. Hence the name: Bakkt (backed).

Li Ka-Shing leads investment round for Bakkt.
Bakkt recently announced that it had raised 182 million dollars in its first investment round. The platform received money from various large parties. This includes Boston Consultin Group, Galaxy Digital, GoldInch partners, M12 (Microsoft's investment fund, Pantera Capital and Protocol Ventures).

According to the website EJ Insight (http://www.ejinsight.com/), one of the most notable investors in Bakkt was the company Horizons Ventures. This Venture Capital company from Hong Kong was founded by, a Li Ka-shing. Ka-shing has built up a varied portfolio of different tech startups over the past decade.

With a value of 30.7 billion dollars, he has sufficient capital to invest. But this is not the first time that Ka-shing has ventured into the market of cryptocurrencies. In 2013, Horizons Ventures invested in BitPay, a company that looks at payments with Bitcoin. But also in 2016 in Blockstream, a supplier of blockchain technology.

Investors see the potential of Bakkt
The idea of Bakkt to bring a digital platform to market what Bitcoin futures offers seems to catch on with the investors. The above investors are in fact some of the biggest names among investors. Institutional investors could help the cryptocurrency market to obtain more recognition. Institutional support can also reduce the volatility that has plagued the crypto market for years.

Physically delivered crypto futures will distinguish Bakkt from the competition, as rival exchanges CME and CBOE handle the contracts in euros. Bakkt's contracts are also stored via ICE in the US. Many small crypto traders are looking forward to the launch of the Bakkt contracts on 24 January 2019.
What is this thing that builds our dreams, yet slips away from us?

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#2
Wallstreet vehicle Bakkt wants to help institutional investors with bitcoinfutures.
Bakkt is on track to launch their cryptocurrency futures trading platform for 'physical' Bitcoin. The trade fair is an initiative of parent company Intercontinental Exchange (ICE), which is best known as the parent company of the New York Stock Exchange (NYSE). Bakkt becomes an important link to give institutional investors access to the crypto market. In contrast to existing platforms, Bakkt is actually settled in real bitcoins.
Bakkt started in November with the first tests and the boarding of the first clients and could open its doors to the general public in December (delayed to Q1 of 2019). If the American regulator CFTC at least agrees with the plans, they would like Bakkt to be favorable about this. BAKKT CEO announced that the organization has attracted Adam White as Chief Operating Officer. The choice for Adam White is remarkable because he is known as one of the first employees of Coinbase.
Bakkt - Backed by bitcoin
Bitcoin futures contracts are not a new phenomenon. Last year, the first bitcoinfutures markets opened, with the launch of the CME and CBOE futures markets leading to major news at the end of 2017. According to analysts, these have had a major impact on the gigantic value increase and subsequent depreciation of the bitcoin price.
Much to the disappointment of many a crypto-investor, these futures markets did not provide the positive market effect that was hoped for; the price of bitcoin collapsed almost immediately after the launch of the CME futures market. One of the causes often mentioned is the fact that the CME and CBOE futures markets do not trade in 'real' bitcoins, but in derivatives of bitcoins that are priced, paid and settled in dollars. So no real bitcoins are traded at any time.
Physical bitcoin
The innovative that Bakkt brings to the market is the introduction of Bitcoin futures markets where trading is done with real bitcoins as collateral. Or, as Bakkt mentions without any appearance of irony, "physical" bitcoins. The name Bakkt is therefore a play on the English 'backed' which alludes to the fact that actual bitcoins are used as an underlying trade object at Bakkt. So no 'virtual bitcoins' that only exist on paper.
This means that every sale on the Bakkt platform must be financed in advance with real bitcoins and paid for in real bitcoins. This implies that the trade on the Bakkt platform will have a noticeable effect on the market, which naturally hopes that the big players from Wall Street will finally make the switch to cryptocurrency via Bakkt and invest their millions in actual, real bitcoins. Bakkt further reduces the threshold by taking on the management and security of the bitcoins that are traded on the platform itself. It also offers guarantees and securities that are essential for many institutional investors to enter the market.
High expectations
A futures contract is similar to the more familiar option. With an option you buy the right to buy something for a certain price on a certain date, whereas this is a duty for a futures contract. The expectations around Bakkt are high and that is not for nothing. Bakkt is set up by one of the most reputable financial institutions in the world: the parent company of the New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE).
It is further supported by Microsoft, Starbucks and the Boston Consulting Group (BCG) and a laundry list to major investors such as Galaxy Digital, Fortress Investment Group and Pantera Capital, to name just a few. Not only does this mean that Bakkt can count on sufficient financial resources, but it can also use existing technological infrastructure and an existing framework that meets the requirements of the legislator. Bakkt is also expected to benefit considerably from the existing reputation and trust with NYSE: ICE.

Paying with crypto at Starbucks
Although in the first instance Bakkt focuses on the institutional investors and the futures market, the plans do not stop. Behind the cooperation with Starbucks, for example, there is also the desire to make it possible to pay through Bakkt at the coffee giant. Starbucks has since announced that it is emphatically not the intention that coffee will be bought in their branches with cryptocurrency, but that it will be possible that customers can easily sell their cryptocurrency through Bakkt for dollars they can spend on the coffee chain. That seems to be a small strategic nuance that the average customer may not notice, thanks to Bakkt, but which the company probably gains in terms of regulation and accounting.
What is this thing that builds our dreams, yet slips away from us?

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#3
Hopefully it can help crypto to grow and be used by more and more people as a true alternative to fiat.
Cardano is the most promising 3 gen. crypto right now.


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#4
So Starbucks thing...I go to starbucks with x BTC and I can buy a coffee which on the surface looks like I have bought with BTC, but in actual fact there is a trade happening that I am not necessarily aware of - I am actually not buying a coffee with BTC, I am going to Bakkt and selling them my BTC for USD (or local currency) and actually buying my coffee with USD. However it all happens so fast that it appears to the less technical that I have used BTC for the coffee. If that is the case, then I like this.
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#5
(2019-01-14, 11:35 AM)BobBobert Wrote: So Starbucks thing...I go to starbucks with x BTC and I can buy a coffee which on the surface looks like I have bought with BTC, but in actual fact there is a trade happening that I am not necessarily aware of - I am actually not buying a coffee with BTC, I am going to Bakkt and selling them my BTC for USD (or local currency) and actually buying my coffee with USD.  However it all happens so fast that it appears to the less technical that I have used BTC for the coffee.  If that is the case, then I like this.

This is exactly what will happen.
What is this thing that builds our dreams, yet slips away from us?

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#6
(2019-01-14, 07:03 PM)Hugues Wrote:
(2019-01-14, 11:35 AM)BobBobert Wrote: So Starbucks thing...I go to starbucks with x BTC and I can buy a coffee which on the surface looks like I have bought with BTC, but in actual fact there is a trade happening that I am not necessarily aware of - I am actually not buying a coffee with BTC, I am going to Bakkt and selling them my BTC for USD (or local currency) and actually buying my coffee with USD.  However it all happens so fast that it appears to the less technical that I have used BTC for the coffee.  If that is the case, then I like this.

This is exactly what will happen.

Great, then if it can happen almost instantly then I think this will be a winner for BAKKT and a winner in general for crypto as using it becomes much easier.  I could see myself giving a Starbucks voucher to friends, so why not give them some crypto to use as well.  This will make public acceptance a lot easier.
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#7
Regarding crypto. The Danish tax system is now going after the big exchanges to find people who did not declare Bitcoin winnings . It seems that we now have to pay tax of winnings. Freaking crazy system. No politicians dare to protect our freedom instead they go for more and more regulation. Damn. We need more shops that ONLY accepts crypto so we can short circuit the tax system.
Cardano is the most promising 3 gen. crypto right now.


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#8
In the UK they will chase you for £100 tax owed but let Amazon, Starbucks etc get away with out paying the billions they ought to. I would think that most people on the exchanges would be able to (if they do not do so already) hide their true identity.
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#9
(2019-01-16, 11:36 AM)BobBobert Wrote: In the UK they will chase you for £100 tax owed but let Amazon, Starbucks etc get away with out paying the billions they ought to.  I would think that most people on the exchanges would be able to (if they do not do so already) hide their true identity.

Yes the big guys hide and get away with it, but the average Joe has to pay!

No, you can't hide if you do fiat on exchanges. They need KYC with passport and stuff.
Cardano is the most promising 3 gen. crypto right now.


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#10
So the tax is really payable only on crypto profits that get turned into fiat Wink


Or else we need a 100% trustworthy exchange, based offshore, that does not ask questions. I can see you flying there every summer to pick up your profits in gold!
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