Miami Mayor Wants To Invest Part Of City Reserves In Bitcoin

As the cryptocurrency market warmed up sharply amid the news of Tesla’s $ 1.5 billion investment in Bitcoin, there are more people willing to invest in cryptocurrencies. For example, on the eve of Miami Mayor Francis Suarez announced his desire to invest part of the city’s budget in the main cryptocurrency.

If he really turns his vision into reality, Miami could be the first municipal entity to take advantage of the rise in Bitcoin’s price.

To begin with, let’s clarify that the name of Francis Suarez has been known within the cryptocurrency community for several months. In particular, at the end of December 2020, he called Bitcoin «a stable investment during an incredibly volatile year«, that is, he openly supported a blockchain asset on his Twitter.

The story did not end there. At the end of January, it became known that Francis is assembling a team to work in the blockchain direction and thus wants to bring the adoption of the industry in the city to a new level.

Finally, in early February, a source announced the possibility for Miami residents to receive a salary in Bitcoin, while Suarez suggested that BTC would be «the loudest story of the next few years.»

Now a government official wants to contact cryptocurrencies not only at the level of statements.

Who buys Bitcoin

The Mayor’s opinion was published in response to a comment by well-known cryptocurrency enthusiast Anthony Pompliano. The latter on Twitter suggested which municipal structure would be “the first to join the crypto race” of such a huge scale. Pompliano also mentioned Suarez’s account in his post.

Let’s make sure Miami continues to be the national leader in technology engagement.

The answer was not long in coming. Here is a line from Suarez, in which he shared his attitude to what is happening. She is quoted by Decrypt.

I am working on a resolution for our commission at the meeting on Thursday to get things off the ground … Elon Musk’s announcement was very useful. Now all we need is the adoption of cryptocurrencies at Amazon and then a flight to the moon.

Recall that by a flight to the moon or the so-called Tuzemun, representatives of the cryptocurrency community mean a sharp increase in rates. Allegedly, the coins fly on rockets, and if they reach the moon, then their value has reached a very high altitude.

Whether or not the resolution gets any support on Thursday is an important gesture from a politician who has quickly become one of the most visible cryptocurrency advocates in the country. He pledged to turn Miami into a kind of crypto Mecca, held meetings with the billion-dollar Winklevoss twins who are the creators of the Gemini cryptocurrency exchange, and also spoke with leaders of mining companies.

It is noteworthy that the decision of Tesla to bet on Bitcoin was met with enthusiasm by crypto enthusiasts, but some traditional investors were perceived with distrust. One of them is Gary Black, a private investor and former executive at Goldman Sachs. On his Twitter account, he announced that he had sold the Tesla shares he had held since August 2019. One of the reasons is too risky capital redistribution. That is, Black considers investing in Bitcoin a rather rash decision. Here is one of his quotes:

TSLA has always been a risky investment, but investing $ 1.5 billion in Bitcoin makes it even more risky.

Black does have cause for concern: Bitcoin is known to be volatile, and although the market has grown strongly in the past few months, there is no guarantee that this trend will continue after the notional five years. After Bitcoin soared to all-time highs in late 2017, just days later it lost almost half of its value. And last month, the price of BTC fell by about a fifth in one day.

From the point of view of a traditional conservative investor, it is wise to exit the Tesla position: for Black, the risks associated with crypt are too great. However, where there are high risks, there is often the potential for very high earnings. If you manage your capital wisely, even Bitcoin trading can bring very good profits. Therefore, we believe that this decision has become erroneous. At least in the near future, due to the efforts of Tesla’s management, Bitcoin and other cryptocurrencies will be trending among investors. This means that the holders of the company’s shares will certainly profit from this.

We believe that this situation turned out to be logical. Still, cryptocurrencies, blockchain and decentralized finance require not only a lot of time to understand what is happening in the industry, but also a certain breadth of views, without which the scale of the niche and its prospects cannot be understood.

Since the Tesla investor probably does not trust Bitcoin and considers it to be something negative, he decided to get rid of the company’s shares. And they will obviously go to a person who has managed to get acquainted with the principles of the blockchain and BTC.

So in this case it is better to pay attention to leading figures like Francis Suarez. According to his point of view, there is definitely no reason to doubt cryptocurrencies.

Leave a Reply

Your email address will not be published. Required fields are marked *