Bitcoin Global News (BGN)
November 21, 2018 -- ADVFN Crypto NewsWire -- Yesterday, amid
growing negative sentiment around the Cryptocurrency market, the
much anticipated Bakkt Futures platform delayed its launch until
next year. Before you take this news and consider something extreme
like giving up hope in the future of Crypto, it is important to put
not only this, but the overall market conditions into
perspective.
Firstly, Crypto is far from
dead.
It is experiencing a large
downturn, but this downturn is due to various conditions that are
quite natural for a new space, including fear mongering from those
who do not want to see it succeed. Furthermore, in Bakkt’s case,
their CEO, Kelly Loeffler, made clear that their delay was not so
much due to market conditions, but to their desire to have a
smooth, well-prepared launch.
Included in this sentiment are the
ideas that the company has not gotten to its ideal position with
regards to pre-launch partners and clear regulatory approval. In
addition to this, Bakkt has also specified that the Commodity
Futures Trading Commission is still reviewing their minimum viable
product to determine if it can be regulated.
Due to these statements, it is easy
to conclude that Bakkt’s delay is a good thing. They are just
trying to do their due diligence, right?
The truth is, even with this
possibility, another form of motivation exists.
Bakkt’s future platform will mainly
be led by its Bitcoin Daily Futures service, which is dependent on
the price of Bitcoin staying at certain levels for it to succeed.
In other words, regardless of how altruistic a futures trading
platform makes their offering seem, they still want to make money.
If Bitcoin continues to fall considerably for the rest of the year,
then it is likely that most customers will place their bets in this
direction.
Therefore, the only significant way
for the company to make a considerable profit would be for Bitcoin
to rise. Because of this, one should also accept the chance that
Bakkt simply wants the market to stabilize in a direction that is
favourable for its needs before it goes live.
In the end, these needs could even
just mean that the company does not believe any party will make any
money in such a bear market. Thus, the answer to the delay could be
as simple as Bakkt betting on when the bear market will
end.
Furthermore, due to the inherent
volatility of the Crypto market, only the launch will help us to
understand any of this. Even so, we hope that this short analysis
will help you on your way to making informed decisions on this
subject.
By: BGN Editorial Staff