Let’s crunch in some numbers. On an average day, each of the 27,000+ Starbucks outlets serve at least 500 clients translating to 13.5 million clients on a single day. With each cup of coffee retailing at $5, that translates to $68 million and whopping $25 billion in revenue in a year—and that’s on a lower side.
We understand that Starbucks and Microsoft through the ICE backed Bakkt are “building an open, seamless global network to enable you to buy, sell, store and spend digital assets simply, safely and efficiently.” With Starbucks working with Microsoft allowing customers to pay for their triple venti lattes with Bitcoin instead of cash, Alec Ziupsnys, the Chief Innovation Officer at BlockEdge Capital is highly convinced that the eventual launch of Bakkt—a digital platform that is yet to be approved by the CFTC and that will launch the first physically delivered Bitcoin futures—will eventually legitimize Bitcoin, thrusting it to possible 100 million customers per week.
Although we have to be quite realistic and realize that the Starbucks-Microsoft partnership will create a secure cryptocurrency wallet that will allow customers to convert their Bitcoins to USD—or any other fiat currency depending on location—which will then be used to buy coffee, not everyone will be ready to convert their Bitcoins to fiat. There is the taxman obstacle as every conversion is taxable and considering BTC volatility— few will be willing.
However, assuming one percent of the 13.5 million clients convert their BTC to fiat and buy coffee, that will translate to $250 million of added market cap per year and that means a stable and less volatile crypto market. The good news is that there are chances that the American Retailer will add in some incentive encouraging crypto expenditure.
In case of that boost acceptance and one in every ten customers buy coffee with Bitcoin, that will translate to $2.5 billion of added liquidity and well, it could snowball especially if conversion rates are favorable. Additional traction can be drawn from the already successful—but in Beta Lightning Network which offer instant transactions—exactly what Starbuck wants, low fees—needed by the customer– and a scalable system which is perfect for Bitcoin.
It is no secret that Starbucks involvement is huge for Bitcoin. As a facilitator and even some sort of a Bitcoin ATM, it will draw the curiosity of the general public and the more they cue public interest, the more possible network effect will develop drawing immense value for the world most valuable coin. It is these sequences of events that will eventually aid in Bitcoin bottoming cementing its position as a global and reliable e-currency just as envisioned by Economist Milton Friedmann:
“The internet is going to be one of the major forces for reducing the role of government. The one thing that is missing is a reliable e-cash, a method by which on the internet you can transfer funds from A to B anonymously.”
The story is sponsored by newconomy.
Join our Telegram news channel or other social media to stay updated!
Get the latest updates from Crypterium