Welcome back to the Tribe. In this post we are going to discuss recent developments with new mayor of New York, changes in the mining of BTC per country, and try to figure out – where is the capital of Bitcoin?
Nothing should be considered investment or financial advice. Enjoy the ride!
Capital Of Bitcoin
While this might seem like a silly phrase, it gets thrown around a lot in the media, and by politicians.
What does it even mean to be the Capital of Bitcoin? Do you get an award for it? Does that mean that Bitcoin is welcome there?
Lets break it down.
What SHOULD the Capital of Bitcoin offer? Here are a few things we recommend:
- Sound legislation supporting trade and acquisition of currencies
- Also legislation protecting the companies that plan to use crypto in products like lending, banking, and reserving
- Acceptance as a currency as an asset in banks and in the retail sector as well as legal tender
- Clear guidance from governing bodies similar to the SEC on what is and is not a security (cough cough the Ripple scandal)
- Government grants and financial assistance to companies looking to dive into blockchain
- Finally a decrease in the capital gains tax laws in reference to crypto and other digital currencies promoting their use
These are just a start, but we feel the CAPITAL of all of Bitcoin should at a minimum offer all of the above.
New York Mayor
Most recently, the newly elected mayor of New York city, Eric Adams, announced his upcoming agenda during a victory speech.
In that speech, he mentioned many things but in a certain segment took the time to address tech. More specifically, he said that “Bitcoins” was apart of the agenda and planned to bring the businesses back that had previously left to other places like Miami. Although why did they leave?
The reason blockchain companies are running as fast as they can from New York is because of their Bit License program. Due to this program, creating a business around blockchain in the city is harder to do than even creating one in the traditional financial market! What it ultimately does is act as a barrier of entry for most businesses and ends up turning what should be a business deal into a political agenda forum.
Quite disrespectful to the hard working blockchain pioneers, so they all left! We don’t blame them.
Clearly, New York has a long way to go before it is the capital of anything remotely resembling blockchain as long as this Bit License exists. We suggest the newly elected mayor starts there.
Other Bitcoin “Capitals”
With New York off the list, lets look at other parts of the world that could try to claim the title of Bitcoin capital!
General U.S. Status on Bitcoin
Several U.S. states and cities have proposed favorable legislation regarding crypto being an asset and for business clarity like: Texas, Miami, Wyoming, and parts of California.
Not to mention that members of congress are now putting pressure on the SEC to pass the first Bitcoin ETF to further put the U.S. in the fight.
Most notably, is El Salvador which currently offers no capital gains tax and citizens are highly encouraged to own Bitcoin wallets and use the currency in retail.
In addition, the country recently passed something called the Bitcoin Law on June 8, 2021. This law basically gave Bitcoin legal tender within the country after September 7th. The purpose of the law was to regulate Bitcoin as unrestricted legal tender with liberating power, unlimited in transactions, and to any title that public or private natural of legal persons require carrying out per several sources.
Portugal is another crypto friendly country that is highly encouraging high net worth individuals to move there with their digital assets.
Specifically, they have extremely lenient capital gains taxes on digital assets which basically removed capital gains all together on them. Although, crypto is not quite considered legal tender in the country, which could help push them over the top if enacted in the near future.
Some other notable mentions are:
- Russia who has openly said that crypto has the right to exist by Putin himself, and has clear ties to mining farms all across their Moscow region
- Australia recently decided to allow its largest banks to hold and sell Bitcoin to its citizens showing a positive view on the market
- Malta has been a long standing advocate for crypto even becoming the home of some of the top companies in the space due to its favorable views on the market
- Other countries include: Japan, Singapore, South Korea, Cyprus, and several EU countries.
With all of that out in the open, who is the capital of Bitcoin?
Well, right now it seems like the country with the most influence and impact on the market still seems to be the U.S. surprisingly.
The U.S Is The Capital Of Bitcoin
While the U.S. still does not check off all of the recommended things above for the capital of Bitcoin, it does have several things going for it:
- States and cities are starting to compete to become the central hub of the industry which is great for growth
- Congress is starting to pressure the SEC and its continued blockade of the market desired ETF
- U.S. recently become the number one country for Bitcoin mining out of the entire world thanks to China banning digital assets again
- The U.S. is home to some of the largest exchanges on the market like Coinbase, in addition to some of the top companies in the space like IOHK
Now many people might argue that the U.S. is still behind in many channels, but besides legislation – the country has all the right tools to quickly take over the industry. Given the proper motivation, U.S. could quickly become the home and capital of Bitcoin permanently.
Capital Of Bitcoin Post
Thanks for reading our post on the capital of Bitcoin. To be honest, our conclusion of this post surprises even us, but the facts are the facts.
Even with the U.S. skating the ice on legislation, they still have the best shot at becoming the hub for crypto. Only time will tell.