According to press reports, Starbucks now holds “significant equity” in the cryptocurrency platform Bakkt. The coffee giant will install Bakkt’s payment software in its stores, which customers will be able to use to pay with crypto. The software will instantly convert digital assets to fiat in order to keep cryptocurrencies off of Starbucks’ books. Bakkt plans to offer a number of crypto-related services this year and the second phase of its operation, which includes a partnership with Microsoft, is set to launch later this year.
It is worth pointing out that the number of confirmed Bitcoin transactions per day is close to an all-time high, while the number of transactions per block is also now nearing the highs reached in December of 2017.
However, in order to understand the reason why the Bitcoin’s price is not going up we need to go back to the paragraph about Starbucks and focus on a few particular details – “customers will be able to use to pay with crypto. The software will instantly convert digital assets to fiat in order to keep cryptocurrencies off of Starbucks’ books”. In other words, the apparent increase in cryptocurrency adoption is immediately offset by the conversion into fiat.
In other news, following the hard forks last week, Ethereum’s daily supply growth rate has held steady at around 13,000 ETH, a low figure when compared to the almost 20,000 ETH we saw earlier in the year. As such, inflation dynamics, or better put – deflationary dynamics, are expected to prove supportive for the ETH coin’s price.
Finally, something that may prevent an influx of hot money from China that may have found its way into the crypto ecosystem is the launch of a new stock-trading venue in Shanghai featuring a registration based initial public offering (IPO) system. The Science and Technology Innovation Board will scrap limits on price and debut gains, and encourage more technology companies to go public.
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