Hybrids are coolThe Bakkt platform will have trades physically settled in Bitcoin — a strategy that allows investors to gain exposure to the cryptocurrency through the trade while also profiting on risk-based on future value. This type of platform is a hybrid model between a customary commodities market and a foreign exchange transactional model. As such, bitcoins are treated as a currency.
Centralizing BitcoinThe announcement, however, also raised concerns that this type of institutional participation in cryptocurrency would only lead to greater levels of centralization. However, some of the fears may be unfounded. Unlike other assets that can become centralized in this way, Bitcoin is not tied to any centralized producer or government. In spite of all the debate, one thing is certain — a market that requires physical settlement for futures trades in Bitcoin proves its validity as a currency. While many would argue that Bitcoin is only functionally viable as a store of value asset like gold, these events will certainly lend credence to the counterargument. Think the Bakkt Futures market will take off and prove that Bitcoin is a currency? Let us know in the comments below!
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