In the 10 years existence of bitcoin, awareness has been on the low. One of its first mentions in mainstream media was the portrayal of a suspicious character who might be “Satoshi Nakamoto” in the popular TV show “Good Wife. In its few appearances bitcoin often was ridiculed, downplayed or labeled “illegal money” or “wild west market”.
But ever since the coin reached the $20,000 mark, it has shown that it has become a vital tool for small and big scale investors. Even Wall Street has put its attention to it.
One of bitcoins main critic points is the impracticability compared to fiat currencies. That might be true for now, and might very soon change. But we want to focus today on an alternative use case for which the “digital ledger”-currency is used. And this is Bakkt.
Bakkt is a bitcoin futures exchange and digital assets platform founded in 2018 by the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE).
First of all. What are futures?
Futures are financial contracts, obligating the buyer to purchase an asset to a predetermined future date and price. A futures contract allows an investor to speculate on the direction of a security, commodity, or a financial instrument. In short: You can speculate that the price of an asset will go in a certain direction and set a future date for a sale/buy.
Why is it so important?
Futures are a common way to trade on markets, even outside of crypto. Various established companies, such as the Boston Consulting Group (BCG), Microsoft and Starbucks, were involved in its building.
Furthermore, the Bakki has partnered with major investment groups, including Fortress Investment Group, Eagle Seven, and Susquehanna International Group, with the aim of building a path for major money managers to offer mutual bitcoin funds, pension funds and exchange-traded funds (ETFs).
It is easily noticeable that the most important aim of the platform is to bring institutional funds to the crypto market.
With institutional investments, cryptocurrencies will pass from a currency for solely tech averse people to a real financial instrument. This upgrade will help lead Bitcoin, Ethereum and the other currencies to the mainstream world and the mass adoption.
Next Steps for Digital Assets?
Bakkt is designed to enable private investors and institutions to buy, sell and store digital asset.
This could be a significant step towards asset tokenization (digitalization of a real life value). In fact, by attracting the attention to the crypto world and blockchain technology, institutions will be encouraged to regulate and use tokenized asset.
The WEF (World Economic Forum) predicts that 10% of total GDP will be stored on blockchains by 2027. At TaoDust, our goal is to create a democratic, boundless and liquid market for the tokenized companies’ equity, and we are on the right path!
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