Despite being an underdog, Miami has developed a reputation as one of the key locations for blockchain technology development, with thousands of crypto enthusiasts flocking to the city.
Dozens of companies are using the Bitcoin 2022 conference, which runs from Wednesday to Saturday, as a place to network, pitch ideas, and share announcements within and outside the industry.
New York City and Silicon Valley continued to lead the way in funding raised by blockchain startups in 2021, at $6.5 billion and $3.9 billion. But Miami is currently partnering with Los Angeles, where companies have raised more than $760 million in funding, according to market research firm CB Insights.
Cryptocurrency exchange FTX last year purchased the naming rights to the NBA arena in downtown Miami on behalf of American Airlines. Blockchain.com, the largest cryptocurrency company to relocate to Miami so far, will employ 200 employees at a location in the trendy Wynwood neighborhood, where other tech companies and investors have also set up shop. It is planned to accommodate.
Peter Smith, CEO and co-founder of Blockchain.com, said, comparing it to San Francisco's South of Market district and New York City's Brooklyn, “Wynwood has the space needed as new technology sectors are built.” He truly has that kind of spirit.” “Eventually they want to partner with other technology companies.”
A welcoming environment fostered by many local officials, primarily Miami Mayor Francis Suarez, who attracted national attention for attracting high-tech investment and becoming one of the crypto-friendly mayors in the United States. are listed.
Some point out that Miami and Florida are both business-friendly and have remained open during the pandemic, making them more attractive places where people can work remotely.
“This is a great opportunity for companies to come here and build projects in cryptocurrencies,” said John Bartleman, CEO of TradeStation, a multi-asset broker based in Plantation, Florida. That's undeniable,” he said.
Bartleman's company commissioned an 11-foot-tall (3-meter) robot-like statue of a bull intended to imitate Wall Street's “charging bull.” The artwork was unveiled Wednesday by Mayor Suarez in front of a jubilant crowd at the start of the conference in Miami Beach.
“Welcome to the future of finance,” Suarez said. “I’ll give you the Miami bull!”
This enthusiasm stands in sharp contrast to Bitcoin's own difficult year. On the financial side, the cryptocurrency hit a high of $67,553.95 in November, but fell by almost half in late January. It remains down about 30% from its November high. Bitcoin has also been linked to many of cryptocurrency's most popular trends, including non-fungible tokens (NFTs), which are said to offer a way to auction off “unique” copies of digital art and other cyber objects. is hardly included.
More broadly, critics are questioning the underlying assumptions of the claimed value and utility of cryptography, calling the hype and so far unrealized promise of blockchain technology beyond its early days. Some liken it to a Ponzi scheme that benefits participants but leaves everyone else in a bind.
and, Increase in fraud Additionally, scams related to cryptocurrencies and NFTs are causing some consumers to be wary.
Dozens of companies
Miami aims to attract more investment into crypto projects, with Bitcoin 2022 organizers saying at least 75 companies will present at the conference.
Last year, El Salvador's President Nayib Boucle made international news at the event when he revealed in a video that the country would be the first to make cryptocurrencies legal tender. Bukele is scheduled to attend this year's conference.
One of the most anticipated announcements may come from Jack Mallards, the 27-year-old CEO of Bitcoin payment app Strike. He is the person who worked with Bukele's government on the nationwide implementation of Bitcoin.
Mallards also partnered with Twitter to sync the app with social networks, allowing people to send digital money as “tips” without the need for banks like Cash App or PayPal, giving $10 to a man at a Starbucks in El Salvador. A video demonstration was made of how the message was sent. .
“Why would anyone use Western Union again? When you use one of the world's largest social internet networks, you combine it with the world's best open financial network,” he wrote on YouTube. said in a video posted. “Western Union, pawn on E4. What's your hand?”
It remains to be seen what kind of results this initiative will bring in the future. South Florida's population decreased by more than 18,000 people from July 2020 to July 2021. And critics worry the city doesn't have top universities like those in the Bay Area or New York that can develop the workforce to help businesses thrive.
However, Miami businessman Josip Rupena, who will be speaking at the conference about launching crypto mortgages, said the effort will take several years.
Rupena's company, Milo, has raised $24 million in venture funding from investors to become a lender to people who have built up significant digital assets but don't want to convert their cryptocurrencies into US dollars to buy a home. received.
“For the first time, I think we have a platform, a national platform, to tell other people that there are a lot of smart, talented people here. We can spread that message. It’s amazing,” Lupena said.
