Crypto investment platform Bakkt is ‘in talks’ with several consumer brands to have them accept digital currencies and increase bitcoin adoption. The more options consumers have to use bitcoin on the market, the higher demand will be. As a result bitcoin’s value will increase. Bakkt CEO Kelly Loefler and Intercontinental Exchange CEO Jeff Sprecher are have these conversations according to Fortune.
One of the companies that’s likely to start accepting cryptocurrencies, might be Starbucks. The coffee giant reportedly holds a significant equity in Bakkt. Therefore it’s likely that they will incorporate Bakkt’s own payment software in stores. Starbucks already has the option to accept payments using crypto-powered debit cards like Wirex or Flexa’s payment app.
Last month Bakkt finally launched its bitcoin futures. The initial trading numbers have been underwhelming. Experts believe the amount of trading in bitcoin will steadily grow. The investment company has not responded to these rumors. Bakkt believes their investment platform is their main focus for bitcoin adoption.
Advantages of bitcoin payments
Using bitcoin and other cryptocurrencies can disrupt the credit card industry. Transaction costs of cryptocurrencies are much lower compared with the costs involved in credit card transactions. On average retailers pay fees of 1.95 to 2 percent to Visa and Mastercard. This number even goes up when doing online shopping. Bitcoin transaction fees are usually just a few cents. There have been transactions of millions or even billions of dollars that cost less than a dollar.
The more people start using bitcoin, the slower the network will become. That’s why the Lightning Foundation is adding an extra layer to the Bitcoin blockchain. This Lightning Network is currently in a testing phase. It allows for super fast transaction with none or very minimal cost. The only downside of the current network is that it’s only suitable for small payments, like buying a cup of coffee.
Also published on Medium.