Keep the threshold as low as possible
It is not yet 100% clear what the app will look like and what you can do with it, but Bakkt does have a certain vision in mind. They want to help retailers to accept cryptocurrency in a seamless way. Therefore, the app must also be as consumer-friendly as possible, so that there are no barriers for users to use crypto.
Starbucks is the first large company that they have managed to hold on to. You could expect that too, Starbucks and Bakkt have been working together for some time.
Sellers get greater reach
In an official message on Medium, Bakkt’s Chief Product Officer, Mike Blandina, says the app will be beneficial to customers because they can easily execute transactions with digital assets. The app is also advantageous for sellers because it allows them to expand their customer base.
We are launching a consumer app to make it easy for consumers to discover and unlock the value of digital assets, as well as ways they can handle or track them. Sellers get access to a wider group of customers with more purchasing power.
What is the killer app?
Blandina notes that this development is important for the growth of the sector. He foresees a flywheel effect: “small shifts can lead to major changes in an industry.” The challenge for Bakkt is to build an app in which people use cryptocurrency, without having to worry about how it works. That is also what Bakkt’s message says:
It is often said that cryptocurrency’s will be successful when customers don’t have to think about the underlying technology.
More than just payments
According to Blandina, the app should be able to do much more than just support payments:
An important feature of the model we have designed is the support of a superset of digital assets, including cryptocurrencies. Trading in cryptocurrencies should be as easy as how investors trade in shares within their trader account. Our vision is to offer a consumer platform for managing a digital asset portfolio, whether they want to store, communicate, trade or transfer their assets.
The main Bakkt platform was under construction for a long time. When Bakkt was finally launched, the trade volume was not that high. That led to reactions that Bakkt is a complete failure. The bitcoin price also fell on the day of the launch, so that was immediately made Bakkt’s fault.
But after the launch in September, the trading volume has now risen to more than a thousand bitcoin in one day. Last Friday, Bakkt set a new record with 1,179 bitcoin contracts. Whether it is a coincidence or not, that day the bitcoin rate also increased by 40 %.
Today we set a new daily record of 1,179 Bakkt Bitcoin Futures contracts traded
— Bakkt (@Bakkt) October 25, 2019