PREP 2019
Today, we take that infrastructure for granted. The record-keeping is seamless. Our brokers generate tax statements for us at the end of the year automatically. We have confidence that stocks we buy today will be there tomorrow. There’s almost zero chance of Apple shares disappearing from your account. But with bitcoin, it’s more complicated because it was designed to be “decentralized” (which means no government, bank, or organization is in charge of it). Anyone with a computer can be part of the bitcoin network so buyers can – and do – get hacked. But Bakkt says it has the answer...
For Mom and Pop to trade bitcoin on Bakkt – Bakkt must supply it instantly. To do that, it has to hold it.
BAKKT IS ONLY THE BEGINNING
Every transaction that happens on the bitcoin blockchain is public. You can see what people are doing. You can see how they’re moving money around. You might not know who’s doing it, but you know how many wallets are getting created. You know how many bitcoins are transferred from one account to another. Last year, the number of transactions went up . Let that sink in. We’re in one of the worst bear markets in bitcoin’s history, and yet there’s all this underlying activity. Bitcoin are being moved and accumulated in a handful of wallets... and then staying there . In other words, a small number of people are stockpiling a huge amount of bitcoin. They’re doing it quietly. They’re doing it without pushing up prices. The cheaper they can get their bitcoin, the better. That’s because they’re preparing for something. Who are these mysterious buyers? And why are they buying? In the coming months, massive amounts of money could start flowing through Bakkt. That’s why the whole market could re-price at a much higher level within days. And Bakkt is only the beginning. Fidelity
We’re in one of the worst bear markets in bitcoin’s history, and yet there’s all this underlying activity.
ICE is building Bakkt right under our noses, but it’s trying to keep it quiet. You see, along with banks, brokers and private-equity funds, Bakkt is a buyer behind the scenes. It needs bitcoin. It can’t launch an exchange without it. That’s how it becomes the market- maker. That’s how bitcoin goes from the geeky fringes to a massive online digital trading platform. The market-makers need their own supply. A huge supply.
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January 2019
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