Miami mayor considers investing in bitcoin with public funds

[Chrystora123]

snip..

I don't think this is going to make Bitcoin go in a good direction in the US, the domino effect that will result from this incident is the strict rules on the use of Bitcoin as an asset.  That mayor is not prohibited from investing in Bitcoin but using public funds to invest in Bitcoin is an unethical action because there are only two possibilities that are loss or profit.  Public funds should be used for the welfare of other people who are in trouble (homeless, beggars, widows, parents, education, health, and infrastructure improvements).  hope he doesn't end up in jail..

[Silberman]

I would prefer florida offer tax cuts or tax credits to bitcoin HODL'ers in the state. Rather than a direct investment.

The united states is at risk of falling behind the rest of the world in bitcoin and crypto. Adopting measures to encourage mass adoption would be a better policy IMO.

• Europe and asia have had bitcoin/crypto ETFs for years, the united states still does not despite years of proposals
• Europe and asia have access to crypto exchanges offering leverage on trading, USA still has none
• Europe and asia have access to stablecoins like tether, USA still has none

USA is becoming a joke as far as BTC goes. Although florida doing a direct investment might be great.  

Besides he is claiming that he wants to invest money in bitcoin in order to make Miami more attractive for tech industries but that doesn't make sense at all, to begin with that is a movement that while it will benefit us over the long term it will only benefit them directly and no tech industry is going to see any of that money, so why should they care? If he really wants to attract the tech industry then they need to pass laws that are favourable to those kind of businesses and tax cuts are an obvious solution to that.

[The Sceptical Chymist]

OMG:

“If I would have done it last year, I would have made 200 plus percent,” Mayor Francis Suarez said on FOX Business' “Varney and Co.” “So I would have looked like a genius.”

And if he invests in bitcoin now--right when it's very near its all-time high, he might look like a complete friggin' taxpayer money-wasting idiot in a year's time. 

Hell, I applaud his sentiment and I'm a fervent bitcoin supporter myself, but if you're looking to use bitcoin as an investment, you have to get in at the right price.  That's true of any investment, and I'm not sure Mr. Suarez is being wise by making this statement or if he's seriously thinking about buying bitcoin with taxpayers' money right now.  Imagine what the outcry would be like if bitcoin dropped by 50% in the next year.  The dude would probably be impeached and no doubt wouldn't stand a chance come re-election time.

[passwordnow]

That's a real risk for the public funds but if it's just part of the diversification

Every investments are basically risk but it could pay off if you made the right decision. In this case it could be too late too catch the bull unless this is for a really long term investment .

Like others, it seems to be late on it but we know it that in the long term it will be paid off. But this isn't a private fund but public's. It is scary to touch it if a citizen is just taking about it but looking forward to the positive result of it if ever the mayor starts investing on it.
But he should really consider getting in to the right price because it is the public that will criticize him if they ever understand what he's planning to do with their funds.

[arallmuus]

That's a real risk for the public funds but if it's just part of the diversification

Every investments are basically risk but it could pay off if you made the right decision. In this case it could be too late too catch the bull unless this is for a really long term investment .

-sniped-
But he should really consider getting in to the right price because it is the public that will criticize him if they ever understand what he's planning to do with their funds.

The article was published on January 2021 so we can assume that the interview probably take place somewhere on early January 2021 or Late December 2020 which also means the investment probably started before that. Besides that, this is not something that can be done by him alone and the other commissioners would probably had agreed with this idea before it started

[2double0]

Through public funds, do they mean taxes?
I think they should start asking their citizens to start paying taxes in btc instead of doing a direct investment because indulgence of any Government into buying this means things will become more stricter for crypto users and they may also decide to restrict others from buying it to satisfy their buying appetite.

[AndySt]

OMG:

“If I would have done it last year, I would have made 200 plus percent,” Mayor Francis Suarez said on FOX Business' “Varney and Co.” “So I would have looked like a genius.”

And if he invests in bitcoin now--right when it's very near its all-time high, he might look like a complete friggin' taxpayer money-wasting idiot in a year's time.  
Hell, I applaud his sentiment and I'm a fervent bitcoin supporter myself, but if you're looking to use bitcoin as an investment, you have to get in at the right price.  That's true of any investment, and I'm not sure Mr. Suarez is being wise by making this statement or if he's seriously thinking about buying bitcoin with taxpayers' money right now.  Imagine what the outcry would be like if bitcoin dropped by 50% in the next year.  The dude would probably be impeached and no doubt wouldn't stand a chance come re-election time.

I also believe that although the mayor is a progressive and technologically advanced person, he is a little rushing things and I am not at all sure that the city's funds should serve as an object of even successful, but still speculation. Any speculation implies risk, especially in such a dangerous area as the bitcoin market, where the risk can be multiplied several times. It is one thing to accept taxes and payments in bitcoin, and it is quite another to place city funds in cryptocurrency.

[Twinkledoe]

That's a real risk for the public funds but if it's just part of the diversification

Every investments are basically risk but it could pay off if you made the right decision. In this case it could be too late too catch the bull unless this is for a really long term investment .

-sniped-
But he should really consider getting in to the right price because it is the public that will criticize him if they ever understand what he's planning to do with their funds.

The article was published on January 2021 so we can assume that the interview probably take place somewhere on early January 2021 or Late December 2020 which also means the investment probably started before that. Besides that, this is not something that can be done by him alone and the other commissioners would probably had agreed with this idea before it started

Who knows, they have been at crypto much earlier than that? And they just disclose recently to the public. Anyway, that's their public funds, so whatever they want to do with it, it is their responsibility to their constituents. They should accept accountability for whatever may happen to their investments.

[Shasha80]

If it is true that Miami major investing in Bitcoin using public funds is a very bold action, because as we know Bitcoin is very volatile. So don't just
think about the profit that will be generated, but also think about what if the Bitcoin price falls. The problem is that the funds used to buy Bitcoin
are public funds that should be used for the benefit of the people of Miami. It must be remembered that the best advice for investing in Bitcoin is
always to use money that we can afford to lose, if using public funds is in my opinion a bad idea.

If Major Suarez finally dared to make the decision to invest in Bitcoin using public funds. And finally the Bitcoin dump price is above 70%, then there is
an important need that the people of Miami needs to use the funds. So Major Suarez must take responsibility for this, failing to find a solution could
result in Major Suarez being convicted. Because it could be considered abusing the power to make decisions related to public funds.

[figmentofmyass]

Public funds should be used for the welfare of other people who are in trouble (homeless, beggars, widows, parents, education, health, and infrastructure improvements). 

ultimately, they will be.

governments like municipalities are also institutional investors.

the question is whether to keep a portion of their reserves in cash (where the value will depreciate), more conservative investments like bonds (where the gains are small), or......bitcoin.

[Sithara007]

ultimately, they will be.

governments like municipalities are also institutional investors.

the question is whether to keep a portion of their reserves in cash (where the value will depreciate), more conservative investments like bonds (where the gains are small), or......bitcoin.

If the reserves are there, then they should be kept in liquid or semi-liquid assets, because the municipality may need to dip in to the reserves and withdraw it very frequently. And now the risk in investing in Bitcoin is that it is a very volatile asset and it is entirely possible that the prices can dip by 50% or 60% within a month. Here the municipality may not be in a position to wait for 3-4 years, so that the prices may come back to the previous levels.

[AniviaBtc]

If he can utilize and manage it properly then it is a win win for him, but if he loses the public funds for that then he will suffer the most.

It is really risky to invest something that you really don't own especially if you have because that's your responsibility to allocate it in more important thing. Being a mayor, you need to become a trusted politician and serve your people so that you can earn reputation but if you will only commit those things then that's very risky.

But all in all, bitcoin is worth it to invest, especially if you will use your own money so that all the profit will be yours.

[ene1980]

i'm not sure how serious he is, but the mayor of miami (12th largest city in the USA) just said in an interview with FOX business that they are considering a direct investment in bitcoins

Is it even possible to invest the public funds to a decentralized market and that too in a market that has too much volatility. I have no idea about the legality surrounding it but it just looks like a publicity stunt as you cannot mess around with public funds as far as i know.
The market is soaring at an all time high and if he invest despite all the odds and the market goes down what will be his back up plan, wait until the market recovers .

[Harlot]

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.

If they are taking this risk, they should have studied all possible consequences already.
Investing public funds into crypto, is quite dangerous route to take.
Hard to explain to your constituents when things go sideways.
Maybe they got their inspiration from those financial institutions who are buying large chunks of bitcoin.

Well they can will and most absolutely be allocating some funds for it not the entire public funds will be spent on one investment so for me there is nothing to worry about here since they will just be risking a portion of those funds and for me that is something that their government unit can stomach with. Maybe its not one of the best times to enter and think about investing in Bitcoin but if they know how to manage their risk it will always be a high risk high rewards scenario for them also we don't even know how serious their mayor is so maybe he is just throwing it out there.

[figmentofmyass]

the question is whether to keep a portion of their reserves in cash (where the value will depreciate), more conservative investments like bonds (where the gains are small), or......bitcoin.

If the reserves are there, then they should be kept in liquid or semi-liquid assets, because the municipality may need to dip in to the reserves and withdraw it very frequently.

it's not an all-or-nothing proposition. there is no reason to keep 100% of their treasury reserves in cash or similar instruments if most of it is just gonna sit, depreciating in value.

the proportion of reserves we're discussing is probably 1% or less: https://news.bitcoin.com/mayor-miami-treasury-reserves-bitcoin/

Pompliano tweeted on Tuesday, “Retweet this if you would move to Miami if Mayor Francis Suarez put 1% of the city’s treasury reserves in bitcoin.” Suarez replied:

“Definitely open to exploring it.”

[davis196]

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".

[RealMalatesta]

The search for diversification of the city's investment portfolio does not mean that investors will deposit a lot of money because you can pay in bitcoin.
I don't think you will pay your taxes in Bitcoin, knowing that its value will increase.
Why are they thinking about an easy solution instead of looking for ways to attract capital by reducing taxes or increasing investments in those activities?

what will happen if “It's only going to go up,”  not happen?

No what they are talking about is the funds. Funds are what taxes become, if all Miami citizens pay taxes to the city and that city has a treasury where all those taxes are collected into, and then spend it on whatever the City was needed to do? That would be the funds, and if they have excess amount of funds that means they could simply just invest that into something, hell even before there is any excess, if they do that and need money later they could just cash it out.

I personally think it is not wise for taxes to turn into crypto by these cities because if the price of bitcoin crashes that means you paid taxes for someone else to make a profit from trading while your city doesn't have the money you paid them as taxes, I wouldn't want that to happen in my city because that would make the city a lot poorer and it would stop a lot of the works.

[Miaallen]

That would not be a wise decision to take at this our the ongoing bull run is going to an end. It would have been a very good decision if it was when the Bitcoin fork was coming or just got concluded. He should be reminded of the first caution of crypto investment "INVEST ONLY THE AMOUNT YOU CAN AFFORD TO LOSE". If the fund is what the country can afford to lose which I doubt, then he can go ahead. But this isn't a good time to do so.

[BITCOIN4X]

Glad to hear that the Mayor has the courage to promote bitcoin among his citizens even if he only said he was interested and considered investing. This will increase the popularity of bitcoin among the public and I am sure that if this plan materializes then there will likely be both pros and cons. The good thing is that the Government is starting to be interested and support bitcoin even though this is just a discourse.

Some countries insist that they do not allow public money to be invested in bitcoin or any other cryptocurrency. That would violate any applicable law and maybe the same applies to my country.

[Gozie51]

Some countries insist that they do not allow public money to be invested in bitcoin or any other cryptocurrency. That would violate any applicable law and maybe the same applies to my country.

This my concern on to it. Investing with public fund isn't suitable for my opinion if asked. If the Mayor wants to invest in bitcoin, then he can come direct with his own money, to bear the risk alone and that is what to me will build the public trust better and not mortgaging public money like bond or trust fund. He should decide and take a individual risk then his follows will be more convinced.