Bakkt's transaction volume has exceeded 100 times, can Bitcoin become a mainstream asset?

I have talked about Bakkt in many previous articles.

Many people may not know the background of the Bakkt trading platform. Its biggest aura is nothing more than the biggest benefactor behind it, which is the Intercontinental Exchange (ICE).

Who is Intercontinental Exchange (ICE)? As the exchange with the largest operating income in the world, it owns a total of 14 securities and futures exchanges led by the New York Stock Exchange, and 5 clearing houses, such as the Canadian Futures Exchange, the Paris Stock Exchange and the London Stock Exchange. World-renowned exchanges such as the International Financial Futures Exchange.

ICE ranked first in the world with a consolidated net income of US$5 billion in 2018. 2018 was also the 13th consecutive year of record turnover.

When Bakkt was launched as scheduled on September 23, the transactions on the first day were simply horrible: within 2.5 hours after the launch, only 8 transactions were completed. This is far from the image of the "Wolf of Wall Street" in everyone's minds, and Bitcoin also ushered in a wave of sharp drops that day. Since then, Bakkt has started talking out of the currency circle.

In my September 25th article "Bakkt Arrives as Scheduled, the Market Falls as Scheduled, How Do Retail Investors Respond":

"Of course, the forces on Wall Street will not be so stupid as to rush in and buy directly, because this will straighten up the price of BTC, which is not conducive to their collection of chips. Therefore, they will use tools like Bakkt to suppress the price to make retail investors surrender their chips, and then sell them at a low level. Accumulate slowly."

"We estimate that this will be the case for a period of time. The market will only fluctuate from time to time, and the enthusiasm and patience of retail investors will be exhausted in such a tug of war."

"When retail investors see such great benefits and don't push up the market, coupled with the torture of sideways trading, most of them will eventually submit obediently and honestly hand over their bargaining chips."

At the time of writing that article, the price of Bitcoin was $9,800. And now as of the time of writing, the price of Bitcoin has been suppressed to $7,500 in the tug-of-war for more than two months. It was nearly 25% lower than the price at that time, which is not a big drop.

Regardless of whether the reason for the decline during this period is inevitable or accidental, unexpected or deliberate by some forces, in short, the price drop is what the giants on Wall Street can't wait for.

In recent days, many friends have expressed pessimistically to me: the bitcoins I bought a while ago have all fallen, and I dare not do anything now. I have already cut some of my positions, and I want to wait for it to continue to fall for a while before buying.

After these two months of see-saw, what is the actual trading situation of Bakkt now: According to the data on November 28, Bakkt's intraday trading volume has exceeded 5,000 BTC in 24 hours, and the trading volume has increased by more than 100 times. Bakkt once again took center stage.

During this period, our retail investors continued to give up their chips in suffering, while Wall Street predators were frantically grabbing chips.

The launch of Bakkt will bring the following two effects:

First, because it is a physical delivery, whether you are long or short, you need to use physical Bitcoin as a margin, which means that the difficulty of shorting will be far greater than that of long.

The second is that it unlocks 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 bitcoins are required for supply, which means that the transaction price of bitcoins will rely on real supply.

With the gradual growth and enlargement of Bakkt's trading volume, it is very likely that Bakkt will successfully carry out the custody of Bitcoin in kind, and then develop an ETF fund anchored in Bitcoin in kind.

The path for Wall Street predators to seize market dominance step by step in the future has clearly unfolded before our eyes.

The development of Bakkt will have a major impact on the existing global digital currency transactions, which is mainly reflected in the following aspects:

One is to gradually take back the pricing power of Bitcoin from the current digital currency exchanges.

I have repeatedly emphasized that Wall Street's ambition is not only to trade in Bitcoin, but to become the leader in Bitcoin trading. Now the development momentum of Bakkt has clearly seen that mainstream funds have entered this channel in large amounts.

It is only a matter of time before Bakkt's transaction volume exceeds 10,000. Once Bakkt's trading volume exceeds 10,000, its trading volume will be equivalent to that of the top 50 exchanges, and it will become a force that traditional exchanges cannot ignore, and it will return to the center of pricing power step by step.

Second, legal and compliant Wall Street exchanges will gradually become the mainstream of exchanges.If our country fails to take this step in time in the future, it will gradually lose its advantages in the field of exchanges.

The third is that 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 currency.Although retail investors still occupy the mainstream, as compliant exchanges gradually become mainstream, large funds and even funds will become the mainstream of digital currency investment in the future.

Future digital currency investment is very likely to be fund-based like Western stock market investment. Retail investors do not directly invest in the stock market but mainly invest in funds.