Institutional Money Lift Crypto Prices
by Marvin Dumont
Major investors have returned, putting a stop to 2018’s “crypto winter” when adopters left a trail of blood in the snow.
Institutional capital have poured into cryptocurrencies, lifting valuations 32% so far this year. Apollo’s (APL) market cap has fluctuated between $26 million to $36.5 million in April (as of this writing). The latest bull-run not only affects users’ wallets, it has lifted spirits and restored enthusiasm among the mainstream crowd.
Cryptos are up 18.6% thus far in April.
This past week, Harvard University’s endowment fund made headlines by investing $11.5 million in a new crypto. It’s a significant move that will likely be copied by other endowments — each of whom possesses billions of dollars seeking an ROI.
Harvard’s wealth managers are smart folks, and they view programmable monies as a promising asset class. And therefore, other wealth managers will take notice. That includes investment banks, hedge funds, family offices, and pension plans from around the world.
Fidelity is a major Wall Street firm that is rolling out custody solutions for big investors, which gives clients the comfort of knowing that their private-key-enabled funds can be stored securely, and insured against theft or mismanagement. These precautions help the crypto industry reach a maturation stage that incorporates practices from traditional finance.
There are potential headwinds. China is threatening to ban mining which could dampen this year’s recovery. But whatever Beijing decides, central planners ultimately cannot force people to use cash (paper or digital) that they don’t like.
Economic transactions are a voluntary thing. In the modern world, consumers and investors have access to alternative money. Venezuelans are using U.S. dollars and discarding bolivars. People in Turkey are buying gold in bulk, and shunning the lira. Brave Chinese citizens are secretly using Bitcoin and other cryptos as hedge against the devaluing yuan. And so on.
As long as the world moves away from paper-based activities and towards digital settlements, cryptos will have an edge in the long-run.
Rulers of ancient Rome forced its citizens to use the devaluing denarius. Romans used silver and gold anyway because they were (and still are) more reliable. The verdict? The denarius has been extinct for centuries.
When central authorities are inept or corrupt, people find another way: Their money is too important.
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Apollo (APL) all-in-one privacy currency combines features of mainstream cryptocurrencies in a truly private and unregulatable platform. With two-second block speed, APL is one of the fastest cryptos on Earth. The privacy platform lets “Apollonauts” transact and send data anonymously via Encrypted Messaging, Private Ledger, Decentralized Exchange, IP Masking 2.0 and Coin Mixing. Learn more at www.apollocurrency.com
