“Wall Street is working on a new platform which will ease the trading, storing and spending digital assets.”
Did you read that? Go ahead, read it again.
That’s tremendously bullish for bitcoin and other cryptocurrencies. It will help them gain acceptance among investors, merchants and consumers.
Last week, Intercontinental Exchange (ICE) announced plans to form a new company, Bakkt, with the purpose to create an open and regulated global ecosystem for digital assets. The new company is expected to work with a marquee group of organizations that includes BCG, Microsoft, Starbucks and others to come up with an integrated platform that will ease the trading, storing and spending of digital assets.
That could give a boost to digital assets like bitcoin, as it will ease market volatility. “Traditionally volatility scares most investors no matter the asset class,” says Christopher Bates, a former Member of the NYSE. “Bakkt will draw resources from reputable companies with knowledge in fields of risk management and technology to create a federally regulated platform. Once investors feel at ease trading in a regulated environment volatility should ease.”
All InterAnalyst subscribers understand what emotional distress volatility can cause, especially when it goes from 18,000 down to 6,000! So, understand that volatility is part of the life of an immature asset. That volatility is nothing new and although it will subside over time, you must learn to live with it by controlling your own emotions and decisions.
Remember, this isn’t the first time Wall Street has cozied up to digital assets. In the last two years, Wall Street has been introducing bitcoin futures to help investors hedge their positions. It has also added new products like the Investment Trust, which allow for broader investor participation in the Bitcoin market — and could help the digital currency move from the “innovator” and “early adopter” stage in the Rogers Curve to the “early majority.” That’s when demand for a product turns into a cascade, and the product becomes an “epidemic.”
That’s good news for long-term bitcoin bulls, as an “epidemic” means higher bitcoin prices, especially since bitcoin is in limited supply, provided that big governments, big banks, and hackers do not spoil the party.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.