Lastly, Bitcoin is an investment vehicle that, if held in the city’s treasury, could help Miami’s fiscal prospects. After all, a currency whose per-unit value has increased 18,641 percent the last five years is more tempting than a currency that gradually declines in value.
But just as Bitcoin has proven upwardly volatile, that volatility can spike downward (such as when Bitcoin lost one-third of its value in a two-week period in 2017). This means that any money Miami invests in Bitcoin could plummet in value if Bitcoin crashes.
There are also technical issues with Bitcoin. The mining process consumes lots of energy, making it expensive and environmentally hazardous to produce. Bitcoin has an average transaction fee of $23, and relatively long processing times of between 10 minutes and several hours. And there are questions about whether, once all 21 million bitcoins are mined, monetary incentive will exist for the network of nodes to continue maintaining the blockchain.
Author(s): Scott Beyer
Publication Date: 22 March 2021
Publication Site: Governing
Real-estate veterans and hedge-fund executives believe a seismic shift is under way, one that is moving vast amounts of Wall Street wealth from New York to South Florida. For the past several years, Wall Street has been colonizing the Sunshine State, attracted to more favorable tax policies and sunnier climes. And the momentum is only accelerating amid the pandemic.
While prices are under pressure in New York amid an oversupply of high-end condominiums on the market, price tags in Palm Beach and Miami appear to be on an unstoppable upward trajectory.
Last week, private-equity executive Scott Shleifer, a co-founder of Tiger Global Management, paid over $120 million for an oceanfront mansion in Palm Beach, setting a price record for the state. New Jersey hedge-fund executive David Tepper is also in contract to buy a $73 million house on the ocean nearby, The Wall Street Journal reported.
While he maintains a $238 million home in New York and another luxury condo in Chicago, Citadel founder Ken Griffin has also been on an acquisition spree in South Florida, spending hundreds of millions of dollars to buy land in Palm Beach and Miami, and is opening an office in Miami.
Author(s): Katherine Clarke, Cara Lombardo
Publication Date: 22 February 2021
Publication Site: Wall Street Journal