Monday could be the start of the next bullrun - BAKKT goes live
Monday could be the start of the next bullrun
The key to its success is something called the blockchain. The blockchain is a means of solving the double-spending problem: which is that because the currency is digital it is open to being copied and spent more than once - something banks stop with physical currency.
However, the blockchain acts as a digital ledger, whereby every single transaction (called a block) is securely linked together using cryptography and encryption. It's verifiable, available to everyone who owns Bitcoin and is immune to fraud and hacking - unlike centralised banks.
It enables one digital wallet (that can be stored on a phone) to directly connect with another securely and process a transaction.
BAKKT goes live
Beginning in September, Bakkt, a subsidiary of Intercontinental Exchange Inc., will allow its investors to trade assets with Bitcoin (BTC) for the first time. The decision was approved on Friday (16) by the New York State Department of Financial Services. The first round of cryptocurrency negotiations taking place on 23 September paves the way for a significant deal of trade in various spheres. This includes the New York Stock Exchange (NYSE), which is owned by Intercontinental.
Plans from the reality of Bitcoin
According to Kelly Loefller, chief executive of Bakkt's office, this action tends to create greater confidence about Bitcoin prices. She says this is an important step as this may bring new optimism to the cryptocurrency market. Given its more volatile digital currency status, BTC is known for a regular price swing. For the executive, this feature shows a lack of confidence in their values.
Accordingly, Kelly points out that some futures contracts within the Intercontinental market may take the Bitcoin price to a new annual curve. This will give investors the chance to take a closer look at all cryptocurrency movements in the market, just as they would with other assets. Some brokers who have worked with the company are also agreeing to work with digital currency contracts.
Intercontinental's main objective
The company has already stated that its main objective is to create an ecosystem that encourages pension funds, grant systems and other institutions to invest in the cryptocurrency market. This is intended to make it easier for consumers to buy products and assets from digital currencies. It announced partnerships with big names that embraced the idea, such as Starbucks and Microsoft.