Why Bakkt Is the Best Bitcoin Stock
Bakkt’s SPAC is under ticker $VIH. With Coinbase’s IPO in April 2021, Bitcoin has a bright short-term future from a baseline of $50,000.
Bakkt may be the superior consumer facing app that intersects the retail recovery of 2022. Think about what Bakkt does. It aggregates digital assets to enable instant liquidity and to empower users to trade, transfer, and pay however they want.
Merchants within the Bakkt ecosystem see a lower cost of payment acceptance, enhanced customer engagement, and decreased loyalty liability through a variety of redemption options.
Founded in 2018, Bakkt wants to be the super-app that unlocks the $1.2+ trillion of digital assets that is currently held in cryptocurrencies, rewards and loyalty points, gaming assets, and merchant-stored value. It’s a unique play on crypto, backed by Microsoft and Starbucks.
This company isn’t just a custody service that stores Bitcoin in cold storage. Bakkt is the intersection of crypto and digital assets with real utilities. While some like NFT stocks or Bitcoin mining stocks, they aren’t as correlated with the rise of crypto as Bakkt will be.
Its SPAC is just $13 in $VIH. The Last Futurist believes it’s a very underestimated and unappreciated app since most don’t understand what it will become.
Bakkt could be to crypto what Square’s Cash app is to Bitcoin ownership.
Bakkt is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE).
If Coinbase is for owning and trading crypto for the uninitiated (high transaction fees), Bakkt will be the app for using crypto in the real world.
Bakkt’s Bitcoin futures reached a trading volume of $286 million. But Bakkt’s futures and cold storage of Bitcoin is not so impressive, considering Bitcoin ETFS have gone live.
So what does Bakkt become in late 2021 and 2022? It becomes a globally regulated ecosystem for digital assets that’s the most trusted interface for crypto as a utility.
So what has Bakkt been up to in recent months and years?
- August 2018 – The Bakkt platform is announced by parent company Intercontinental Exchange (ICE)
- December 2018 – Bakkt raises $182.5 million in funding round
- September 2019 – Bakkt Bitcoin futures go live, trading is now open on ICE.
- December 2019 – Bakkt launches Bitcoin monthly options and cash-settled Bitcoin futures.
- January 2021 – Bakkt announces that it will go public.
- March 2021 – Bakkt receives a BitLicense in New York.
The key point of Bakkt’s story is what it becomes in the 2022-2025 period that will be make or break.
For consumers, think of Bakkt as the loyalty points wallet for the future of digital assets and crypto. Think about how that scales.
While buying Bitcoin or crypto directly is appealing to some, Bakkt’s stock is another way to smartly tether your long position to Bitcoin that will be far more affordable than buying Coinbase’s overpriced IPO. Coinbase has so much real world competition like Binance. Bakkt won’t have that much. It’s a more unique business model that leverages all of what crypto becomes.
You can sign up for Bakkt here. At the Last Futurist, Bakkt is our favorite bet on the future of Bitcoin and the digital asset ecosystem.
VIH is $13.65 at the time of writing and likely to go down further as higher interest rates correct the price of SPACs. If you can get this below $12 you can hold the stock for 10 years and do very well.