The price of Bitcoin came to a halt during 2018, but as we are heading into a new year, it seems that 2019 will be the year when institutional investors will enter the market, leading to an increase in price. One of these is Mike Novogratz, who is a billionaire and a big investor and believer in cryptocurrency. He sees Q1 and Q2 2019 as a period where institutions will start to come into crypto and pushing crypto to new highs.
Previously, institutional investors were hesitant to enter cryptocurrencies because of the high volatility, lack of regulations and the technical barriers to entry. Many investors who control other peoples assets are also not allowed to invest in outside things such as stocks.
One characteristic that many institutional investors look for in Bitcoin and other cryptocurrencies is its use as a safe haven during a turbulent market. With global trade wars and Brexit looming in the horizon, Bitcoin and cryptocurrencies value as an investment is becoming more sought after.
However, while the price of Bitcoin might not correlate to the changes in the stock market, it has not yet been able to be truly tested as a safe haven during a real recession.
The Goverments are Using Blockchain
It is just not financial institutions that are entering cryptocurrencies, government institution
One example is that the Russian government isdrafting their laws surrounding cryptocurrencies which also includes a decision to not tax cryptocurrencies. Another example is China who has allowed blockchain transactions to be used as proof in a court of law.
Prestigous Universities Investing in Cryptocurrency
In addition to government institutions, universities like Harvard, Yale and Stanford have all invested in cryptocurrency funds. An undisclosed source has revealed that endowments of the respective universities have invested tens of millions of USD into at least one crypto fund.
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Bought my first Bitcoin in 2013, but when Ethereum was released in 2015 I decided to make cryptocurrency my biggest focus in life since I realized what impact smart contracts will have on society. It has since then been my biggest passion in life and it usually takes up most of my waking hours. I like to program and have followed and interacted with what happens in blockchain pretty much constantly during this time, and spent countless hours researching this amazing technology. I believe this is why I have a good technical understanding of all the different blockchains and its concepts, which is something I try to do my best to spread while working at Toshi Times.