Investors — having in 2008 Financial Crisis lost their fortunes, jobs, faith in institutions and sanity — remember that the modern world was placed on the brink of economic collapse by bureaucrats, politicians (who were/are under influence of lobbyists) and “trusted” third-parties such as banks. Many remember Greece and its citizens’ inability to withdraw cash from ATMs. In present day Venezuela, grocery shelves are empty due to hyperinflation because suppliers and distributors can’t get paid anything of value when the bolivar itself has become worthless. And on and on.
Inflation reduces an investor’s purchasing power. When a central authority increases the currency, the value of each unit diminishes.
Sovereign fiats are inflationary but so are many cryptocurrencies. Let’s take a look at the inflation rates of mainstream coins: Bitcoin (4% until BTC reaches the maximum 21 million supply); Ethereum (15%); Ripple (12%); Litecoin (10%); Dash (13%); Monero (8%); Verge (13%).
Apollo all-in-one currency rewards investors by featuring 0% inflation. That’s in addition to Apollo being the most advanced cryptocurrency on the market with privacy features that make it unregulatable and untraceable. The team believes in a fixed supply of Apollo coins in order to preserve (and even create) value for token holders.
Moreover, we are developing Apollo to become the most feature-rich cryptocurrency in the market. That means it will have robust privacy features such as private transactions, internet protocol (IP) masking, and coin shuffling to anonymize source of funds. An upcoming Hermes 1.0 release will also make Apollo one of the fastest cryptos with two-second settlement times.
Value Loss Via Inflation
Modest inflation may reduce value by a small amount each year. But over the long-term, the consequences can undermine one’s wealth. Let’s examine its harmful consequences by looking at what these institutions have done over the last century: Congress, the Federal Reserve (a private corporation backed by Wall Street) and federal government.
The U.S. dollar has lost nearly 98% of its value since the Federal Reserve Act of 1913. And the Feds’ so-called quantitative easing created (out of thin air) as much as $85 billion in inflationary dollars per month. Instead of saving and investing decades of trust fund payments (involuntarily paid by taxpayers), Congress spent all of Social Security’s money and this has led to entitlement programs being on the verge of bankruptcy.
The federal government now owes over $21.4 trillion dollars in debt and that’s without counting tens of trillions in unfunded liabilities. It’ll be forced to take on more debt by issuing Treasury bonds that are bought by the Federal Reserve, and the Feds then has to print cash (out of thin air) and increase dollars in circulation.
In the 19th century, private issuers of money were sanctioned by the U.S. federal government partly because it could not reliably deliver gold and paper notes in the Wild West. But these private money minters — some of whom became extremely successful in managing monetary systems in the wild frontiers — were outlawed after a few years, returning money monopoly to the government.
Advances in technology, including the blockchain, have made it possible to break the government and central bank’s monopoly on monetary systems, in which many policymakers around the world have done a poor job by significantly inflating the money supply.
At Apollo, we believe in zero inflation.