Miami mayor considers investing in bitcoin with public funds

[Renampun]

*what! the Miami mayor thinks that public funds are his personal money...
He made his own timed bomb. he was too brave to do that. In my city, this is a criminal offense regardless. what if Bitcoin crashes, will he be able to convince the Miami citizens?

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[AndySt]

*what! the Miami mayor thinks that public funds are his personal money...
He made his own timed bomb. he was too brave to do that. In my city, this is a criminal offense regardless. what if Bitcoin crashes, will he be able to convince the Miami citizens?

In the event of a bitcoin crash, this mayor has two workable strategies. One of these strategies is to sell bitcoin at low prices in order to return at least part of the invested funds. The second strategy is to wait patiently for the exchange rate price of bitcoin to return to its original levels or even exceed the purchase price. Another question is whether the mayor will have enough time to wait for this moment before the expiration of his term of office

[doomloop]

Lol I hope these people don’t dump all these one day and frustrate the market . Anyway I am happy that they are starting to recognize and like Bitcoin now, but it seems we are shifting away from the main purpose which used to be transaction, and I wouldn’t like the situation whereby huge money like government money and institutional funds will go into Bitcoin and they will all pull out at a very critical time, causing the market to drop to the extent that a lot of people will be discouraged.

I would be happy when more of individuals are joining, that’s what we really need and not just some whales that can pull in and out at anytime, we need steady funds going in as they are going out, to keep the market leveled.

[disconnectme]

All these people see and read about how people are making incredible gains from Bitcoin and even the story of Microstrategy has legalised Bitcoin in the eyes of most of these big wigs, we are likely to see nation state keeping saving their treasury in Bitcoin, if you believe Bitcoinis going to $200k why do you want to be holding cash that is losing its value to inflation. Good decision if he can get it done

[iamsheikhadil]

It's a very good news, but I think it's lethal in the current situations. Investing taxes and public money directly into cryptocurrencies can prove to be counter-productive if proves show huge volatility and the state treasure ends up with huge losses. Unless all the jobs start paying in bitcoins only, then only can we expect government to put taxes on people solely in crypto.

[dimonstration]

It's a very good news, but I think it's lethal in the current situations. Investing taxes and public money directly into cryptocurrencies can prove to be counter-productive if proves show huge volatility and the state treasure ends up with huge losses. Unless all the jobs start paying in bitcoins only, then only can we expect government to put taxes on people solely in crypto.

Transpersonal of where the funds go or where it is transferred is quite needed by the people, however the risk of losing money when dump happens may result more loses in their economy. There should be a balance use of whom to managed or  operate the accounts. Governments have their own account management, it will be nice if they will also focus some people to trade or manage the fun in crypto.

[Kakmakr]

Speaking for myself, I would be pissed if our Mayor used Municipal funds that are meant for service delivery... on risky investments like Crypto currencies. It might be acceptable in countries where the local Metropolitan areas are doing well and they have a surplus in their budget, but in most large cities in my country .....those local municipalities are struggling.

Bitcoin will always be a risky investment option, because of the high volatility ..and you cannot risk public funds in the hope that it would succeed. (That said.... if they invest a very small portion of the total investment portfolio budget, it would do little harm.) 

[verita1]

This news could be preceded by a tweet from Pomp on December 29.

Retweet this if you would move to Miami if Mayor @FrancisSuarez put 1% of the city’s treasury reserves in Bitcoin.

https://twitter.com/APompliano/status/1343940379176030208?s=19

And that logically excited the mayor of Miami Francis Suarez. Charlie Shrem, a faithful defender of bitcoin who lives in Miami, also joined in this conversation.

If the mayor manages to invest some public funds in bitcoin to make Miami a great promoter of new technologies, it would be a great hit for the city, the country and bitcoin.

[crzy]

This news could be preceded by a tweet from Pomp on December 29.

Retweet this if you would move to Miami if Mayor @FrancisSuarez put 1% of the city’s treasury reserves in Bitcoin.

https://twitter.com/APompliano/status/1343940379176030208?s=19

And that logically excited the mayor of Miami Francis Suarez. Charlie Shrem, a faithful defender of bitcoin who lives in Miami, also joined in this conversation.

If the mayor manages to invest some public funds in bitcoin to make Miami a great promoter of new technologies, it would be a great hit for the city, the country and bitcoin.

That will benefit the financial status of the city and can be use in times of calamity, and yes if this one succeed many city’s will do the same thing and the mass adoption will slowly be done. Anyway, let’s hope that the new administration will in favor more on Bitcoin and that can be more of a good news to everyone and I’m sure we will continue the bull trend until the end of 2021.

[MCobian]

It depends on what percentage of public funds will be bought Bitcoin, if it is above 10% I strongly discourage it. Because after all Bitcoin is still
a high risk investment, so don't just expect big profits, but must take into account the worst that will happen. Because after all it's not Miami
Major's personal money, but it is public money. So the policy for the use of public funds must be carefully calculated.

But if it is true that Major Francis Suarez dared to invest in Bitcoin and finally proved successful in making the city of Miami flourish. Other cities
in America will surely follow, and if this happens of course it will make Bitcoin even more popular and can make the price of Bitcoin go up even higher.

[n0ne]

This is a big step forward by a government to make direct investment on bitcoin. Years back itself similar move is taken by Bulgarian Government. Bulgaria Big On Bitcoin As Reserves Could Exceed Its Gold Stash. It has got Bitcoin in higher volume than the volume of gold. As every country prefer gold as backing reserve, Bulgaria have prioritised Bitcoin as the reserve holding. Maybe we can expect more countries getting used to direct bitcoin investment.

[anoncoiner23]

America has been awakened to the wonders(money making ability) or the open crypto market, which isnt even as decentralized as i would have believed as a newbie, after years in this space, mostly thanks to information found here on BCT, i find that big gov. is slowly starting to adopt it, im sure thats a good thing for holders as we hope that mass adoption will skyrocket our investments but will it?

[Latviand]

*what! the Miami mayor thinks that public funds are his personal money...
He made his own timed bomb. he was too brave to do that. In my city, this is a criminal offense regardless. what if Bitcoin crashes, will he be able to convince the Miami citizens?

That's what they call risks in the market and the thing that he did is really unsafe for himself.

His name will probably be put into shame when its citizen and people know what he did about the public funds which should be allocated in to a more responsible way.

Maybe he really likes gambling that's why he likes to deal with huge-risks in the market but still, that's a very huge and very unacceptable way of investing.

[Question123]

Investing in really good but using public funds is not a wise decision because that is people's money to that is use for creating and building a project. If he use his own money as investment that is good because what ever happens to the money he will gets benefits or if the price dump he will be suffer. Im not against to him in investing in bitcoin but he needs to think also about using public funds is wrong.

[hatshepsut93]

public officials in control of government treasuries turning into bitcoin bulls? we're obviously entering a new era! is this just the beginning---next stop, central banks?

It's only natural that after institutional investors joining, the government investors will come too, though it might still take a long time before it will happen on a large scale. They don't want to invest in something that still has some reputation of being a bubble, tulip, etc.

if they follow through, would this be the first direct investment of government funds into bitcoin?

Yes, I don't think there's ever been official Bitcoin investment done by governments, if we don't count (supposed?) actions of Venezuela, North Korea, Iran when they buy crypto to avoid sanctions.

[philipma1957]

Cities and states pay pensions to their workers.

Most have a pension fund invested in various stocks and bonds. They attempt to make a better rate of return then 100% in so called safe bonds.

So every major city in the USA should consider .5 or 1 percent of its pension fund to be in BTC.

Google bernie madoff and  pension fund losses.

My point is if funds invested into madoff they will try btc.

[kezinaur14]

if they follow through, would this be the first direct investment of government funds into bitcoin?

Maybe the first publicly known if this happens but there is a chance that this might not be the first one. Government funds especially the ones in LGUs have cash reserves that are meant for investment and most of them invest on anything they want depending on their risk factor and as long as it is legal so I won't be surprised if their analysts and fund managers have bought cryptocurrencies as a chance for growing their fund. Also for me the mayor is already late in the action and I just hope their fund manager knows that, buying in now will just give them a little space between the ATH.

WHile an interesting thought experiment, unless this investment is meant for long term, they'll probably be surprised if the price is behaving erratically, just hope whatever preparation they do is sensible. Fund managers can make or break initiatives like this, hope they pick a good one, at least one familiar enough with BTC to make a coherent plan of investment.

[fullhdpixel]

I'm surprised that Miami has an "investment portfolio".
I though that most US cities have major budget deficits,so they are relying on financial aids from the federal government.
Investing public funds is supposed to be heavily regulated and under the strict control of some government agency,so I don't think that any government will allow the investment of public funds into some digital financial asset,that is still considered very "exotic" and "risky".

You could still have a deficit and also an investment portfolio at the same time. Deficit means you have a debt, investment portfolio means you rather invest that money into something rather than pay for it. Just the same as US treasury, USA owns over 20 trillion dollars in debt, yet they do get taxes and those taxes are paid back to social services and many other things as well, just because you have deficit doesn't mean that you will never have any money at all.

To make it simpler thing of it like this, lets say you take out a mortgage, and you pay 1000 dollars a month for it, if you earn your salary and pay that off, that is good enough and whatever you do with the rest isn't anyone's problem. Same goes for this as well, you can have a deficit, you can even grow that deficit to be bigger as well, but as long as you get taxes you can put some of that into bitcoin if you want to.

[Oasisman]

Investing in really good but using public funds is not a wise decision because that is people's money to that is use for creating and building a project. If he use his own money as investment that is good because what ever happens to the money he will gets benefits or if the price dump he will be suffer. Im not against to him in investing in bitcoin but he needs to think also about using public funds is wrong.

LGU's have their own separate annual budget. There are funds to support city projects, calamity funds, and some other funds intended for such specific purpose. There were also budget for LGU's investments to provide a constant growth for the city.
His idea wasn't bad at all If you read the whole article.
He's actually attracting more companies that focuses on technology including crypto related companies and some innovative entrepreneurs in their city. Not only their city is benefiting from his plan and whatever strategy he has in investing to Bitcoin, but also to everyone who are invested in Bitcoin as well, like us.
He's actually visualizing a huge rise in the future, and again his idea ain't bad.

[error08]

Many people will against him for sure as the risk of investing in bitcoin considerably high and people will argue that bitcoin is a speculative and volatile asset to spend public funds. Although we know that decision is brilliant considering this year bitcoin might reach a milestone of over $100k. Depends on the time frame, they could double the funds, it's not too late obviously, just find the right entry point.