A Deeper Look at How Bakkt’s Cryptocurrency Initiatives Can Benefit Millennials 🚨 This article is 6 years old...
A Deeper Look at How Bakkt’s Cryptocurrency Initiatives Can Benefit Millennials
2 min read
Updated: Oct. 20, 2020 at 10:14 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
In the past decade, gradual efforts have led to a huge increase in marketing use of digital assets. By far the biggest challenge, aside from the latent nature of bypassing traditional currency options, has been the elusive sense of security. The Intercontinental Exchange (ICE) is changing that.
On Aug. 3, the global exchanges conglomerate announced a solution by way of its new company Bakkt. The digital marketplace is worth upwards of $300 billion, and yet, most crypto exchanges remain unregulated by the government.
Though crypto exchanges are capable of securing assets with the blockchain system and other technologies, hacking controversies have littered news headlines since 2013–including South Korea’s recent multi-million dollar loss. It’s possible that fragmenting crypto-markets creates trading barriers that incite competition rather than collaboration, which is where Bakkt comes into play.
Founder, Chairman and CEO of ICE Jeff Sprecher said:
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets.”
By consolidating like-minded efforts with some of the world’s most powerful companies, ICE has facilitated a trustworthy, federally regulated Bitcoin market. Respectively, tech and retail giants Microsoft and Starbucks have aligned with Bakkt. Boston Consulting Group is also on board, sparking awareness for the growth-specific petri dish of evolving companies willing to take cryptocurrency mainstream.
Millennials, however, should begin paying attention to what Bakkt is articulating to audiences.
How Millennials Can Benefit from Bakkt
For working 20-somethings struggling to find a smart, transparent vehicle for investing, Bakkt’s 401k initiative is an option that didn’t previously exist.
Economics has not been kind to Millennials, but Bitcoin has the power to diversify trackable investment opportunities in a way that concentrates on sustainability, rather than praying for a low-risk return. Bitcoin has the highest liquid digital currency right now, which has Wall Street’s attention. That said, Wall Street would have to handle the frustration of buying and selling as Bitcoin is revealed to be a suitable alternative to stocks and bonds. The result would be a more controlled trading volume with stable prices.
As a futures contract company, the future is now. Credit cards, retirement plans and retail already on board with Bitcoin are revolutionary, and should mutualization of 401k and IRA markets achieve its goal, a new way of retail transactions is on the horizon.
Furthermore, credit card swiping and the chip would descend into obsolete status in favor of scanning Bitcoin apps. Change is good, especially when its financially responsible. Overall, paying with Bitcoin has the power to eliminate consumer transaction fees.
In a recent Tweet, Bakkt stated:
There are numerous reports that venture investing, initial coin offerings, and corporate R&D related to blockchain and digital assets are all on track to surpass 2017 levels
— Bakkt (@Bakkt) August 25, 2018
Kelly Loeffler, CEO of Bakkt, said in a blog post that the company will create an effective, scalable ecosystem for federally regulated markets and warehousing.
Prior to going live in November, Loeffler told Fortune that she and her partners have been “building the factory” for 14 months, stabilizing an effective infrastructure even before naming the company.
Additionally, ICE plans to host a “one-day” physically delivered Bitcoin contract to clients while also featuring tangible warehousing of funds, should the U.S. Commodity Futures Trading Commission (CFTC) declare Bakkt fraudulent free.
