I have talked about Bakkt in previous articles.
Many people may not know the background of the Bakkt trading platform. Its biggest halo is nothing more than the largest gold owner behind it, which is the American Intercontinental Exchange (ICE).
Who is the American Intercontinental Exchange (ICE)? It is currently the world ’s largest operating income exchange. It owns a total of 14 securities and futures exchanges, including the New York Stock Exchange, and 5 clearing houses, including the Canadian Futures Exchange, the Paris Stock Exchange and London. World-renowned exchanges such as the International Financial Futures Exchange.
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The American Intercontinental Exchange's consolidated net income in 2018 was $ 5 billion, ranking first in the world, and 2018 was the 13th consecutive year of record turnover.
When Bakkt went online as planned on September 23, the first day's transactions were simply unbearable: within two and a half hours after launch, only 8 transactions were completed. This is far from everyone's image of "the wolf of Wall Street", and Bitcoin also ushered in a big drop that day. Since then, Bakkt began to talk about the currency circle.
My article on September 25, "Bakkt arrived on schedule, the market fell as scheduled, how retail customers respond" once wrote:
"Of course, the Wall Street forces will not be stupid enough to rush in to buy directly, because this will directly raise the price of BTC, which is not good for them to collect chips, so they will use tools like Bakkt to suppress the price and let retail investors hand over the chips, and then at a low Slowly attract money. "
"We estimate that for a period of time, this will be the case, the market will only fluctuate from time to time, and this way will consume the enthusiasm and patience of retail investors."
"When the retail investors saw such a big advantage, they didn't pull up the market and coupled with the horizontal torture, most of them would eventually obey, and honestly hand over the chips in their hands."
At the time of writing that article, the price of Bitcoin was $ 9,800. As of the time of writing, the price of Bitcoin has been suppressed to $ 7,500 in these two months of tug-of-war. It is almost 25% lower than the price at that time, and the decline is not significant.
Regardless of whether the reason for the decline during this period is inevitable or accidental, whether it is unexpected or deliberately made by some forces, in short, price declines are undesired for Wall Street giants.
In recent days, many friends have pessimistically stated to me that the bitcoins bought a while ago have fallen, and now they dare not take any action. They have already cut some positions and want to wait for it to continue to fall for a while before buying.
After two months of sawing, what is the actual transaction situation of Bakkt now: According to the data on November 28, the intra-day trading volume of Bakkt has exceeded 5000 BTC in 24 hours, and the transaction volume has increased by more than 100 times. Bakkt entered the center of the stage again.
During this time, our retail investors kept giving up their chips while suffering, while the predators on Wall Street were frantically robbing them.
Bakkt's launch will bring the following two effects:
First, because it is physical delivery, no matter whether you are long or short, you need to use physical bitcoin as a margin, which means that the difficulty of shorting will be much greater than the difficulty of longing.
The second is that it releases the true value of Bitcoin. In the case of non-physical delivery, Bitcoin transactions are not based on real supply, so the supply chain of Bitcoin can be infinitely enlarged without any physical guarantee. In Bakkt transactions, real Bitcoin is needed to supply, which means that the transaction price of Bitcoin will depend on the real supply.
With the gradual increase and increase of Bakkt's transaction volume, it will be very likely that it will successfully carry out the escrow of bitcoin in the case of relying on the bitcoin, and then develop an ETF fund that anchors the bitcoin.
The path for Wall Street predators to gradually grab market dominance in the future has clearly shown to us.
The development of Bakkt will have a significant impact on existing global digital currency transactions, which are mainly reflected in the following aspects:
First, it will gradually rob Bitcoin's pricing power from current digital currency exchanges.
I have repeatedly emphasized that Wall Street's ambitions are not only for Bitcoin trading, but to become the leader of Bitcoin trading. Now Bakkt's development momentum has clearly seen that mainstream funds have entered this channel in large numbers.
It's only a matter of time before Bakkt's trading volume breaks 10,000. Once Bakkt's trading volume breaks through 10,000, its trading volume will be equivalent to the top 50 exchanges, and it will become a force that traditional exchanges cannot ignore, and return to the center of pricing power step by step.
Second, the legal and compliant Wall Street Exchange will gradually become the mainstream of the exchange. If China fails to take this step in time in this regard in the future, it will gradually lose its advantage in the field of exchanges.
Third , the time window for ordinary investors to enter the market is getting smaller and smaller, and mainstream capital and elites will become the main force of digital currencies. Although retail investors still occupy the mainstream now, as compliance exchanges gradually become mainstream, large funds and even funds will become the mainstream of digital currency investment in the future.
In the future, digital currency investment is likely to be dominated by funds like western stock market investments, and retail investors will not invest directly in the stock market but will focus on investment funds.
Bakkt's transaction volume exceeded 100 times, can Bitcoin become a mainstream asset?