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