Why Bakkt May Be Risky for the General Crypto Investor
April 30 2019 - 12:34PM
InvestorsHub NewsWire
Bitcoin Global News (BGN)
April 30, 2019 -- ADVFN Crypto NewsWire -- Over the past year,
Bakkt has been celebrated as a sort of savior for the greater
crypto market that will bring us back to a time of swiftly rising
prices and great prosperity. With these particular blinders on,
however, even crypto insiders seem to be missing one key argument
about the project.
Bakkt is likely not actually geared
towards investors who value decentralization and therefore, true
ownership of their crypto. In an article today about Bakkt’s recent
activities, CoinDesk mentions that Bakkt has signed a major bank on
as a custody provider for their clients.
While this is likely not a surprise
to those who have been following Bakkt’s work since 2018, it needs
to be said. Bakkt is looking to bring billions, if not trillions of
institutional money into the crypto space, which is great news for
those who work for financial firms and have been waiting to get
into crypto in a safer fashion.
On the other hand, the logical
question arises as to whether any of their efforts will help the
industry to continue to fulfill Satoshi’s vision as it stands in
the original Bitcoin whitepaper. If institutions take over the
space, it is easy to argue that new regulations like those related
to defining accredited investors will be established and the
average crypto enthusiast will be frozen out.
Still, Bakkt could bring the
positive effect of snowballing crypto into the public eye as a
truly legitimate investment vehicle. The sheer weight of their
current, apparent partnerships lends credence to this idea.
Perhaps, however, before the launch occurs, those who have the
interests of the average person in mind will work harder with
regulators to ensure that the general populace is not gradually
barred from crypto. Institutional involvement is good, but in the
case of crypto, needs to be balanced with the interests of the
individual in mind.
By: BGN Editorial Staff
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