This article talks about a group of Californians who have invested heavily and become rich in the Bitcoin boom, who are moving to Puerto Rico to, firstly avoid paying mainland USA taxes on their fortunes, and secondly, to build a "crypto utopia," or a city based on crypto currency. They've begun to purchase property and they're close to the local government letting them create the very first crypto currency bank.
These investors see Puerto Rico as an optimal location for their social experiment because of it's experience with Hurricane Maria and subsequent economic downturn. These people call themselves "benevolent capitalists," though Puerto Rican opinions are mixed. Some believe that having the rich in the area will stimulate the local, government-backed-currency economy. Others argue that Puerto Rico has become the "playground for the rich," where foreigners can get business permits to try experimental practices that may fail and hurt the locals more than the business owners. Another question being raised is if the slowly moving hurricane recovery can support the electrical power to support all the internet-based currency trading.
Personally, I think the idea of creating a city using only crypto currency could lead to some serious problems should the currency crash without a government or strong institution backing it. However, I do see the need for innovation to support Puerto Rico, so while a crypto currency utopia seems just that, utopic, if they can make it work, all power to then.
https://www.nytimes.com/2018/02/02/technology/cryptocurrency-puerto-rico.html?rref=collection%2Fsectioncollection%2Fbusiness-economy&action=click&contentCollection=economy®ion=stream&module=stream_unit&version=latest&contentPlacement=10&pgtype=sectionfront
4 comments:
I completely agree that people moving to Puerto Rico solely based on their fortunes from crypto currency is very concerning. The future of bitcoins is unknown and its value could crash at anytime. Puerto Rico is still recovering from current natural disasters and I do not believe these Californians moving there are an answer to their economic problems.
I would agree with Amy. Some of the people who have profited from this Bitcoin bubble are becoming a little too arrogant. They think they discovered something that will be around for years to come, but in reality, the bubble will pop at some point. As for them moving to Puerto Rico and trying a "crypto utopia", they seem to be reaching their necks out a little too far.
I agree that crypto currency is extremely volatile and unpredictable, but this idea to create a crypto city within a city is an interesting one. The government of Puerto Rico seems to be on board with it, to the extent of hosting three separate cryptcurrency conferences within the next two months. It's definitely a risky experiment, but if it deems to be successful, it may change how people see cryptocurrency forever.
Maybe i missed how it will be implemented in the details of the article, but does the point of crypto currency not entail avoidance of a centralized banking system?
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