MiamiCoin: Printing Money Out Of Thin Air

in LeoFinance3 years ago

The world of cryptocurrency is really giving the central banks a run for their money. We are seeing the power being shifted away from the centralized entities to, well, everyone.

We are seeing the printing presses going into overdrive and it is not only the central banks doing it. All throughout the cryptocurrency industry, the money supply is expanding rapidly. New tokens are being created each day, both from existing projects as well as new ones.

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Not to be left out, the City of Miami got into the act. A month ago, we detailed how in MiamiCoin: Starting Another Phase In Cryptocurrency? how the City was getting into the act by creating their own token.

The City is being driven by an aggressive and pro-cryptocurrency Mayor. This is taking it down a path that is making it a trailblazer.

Miamicoin: New Wave of Financing

The City has an annual budget of over $1 billion. Hence the numbers, so far, will not have a ton of impact. Yet, it is still a nice chunk of change that is being generated.

Since the release of the Miamicoin, the city's fund has seen a steady inflow of money. It just voted to accept the cryptocurrency that was generated.

How much is that?

About $2,500 worth of Stacks is transferred into the city's cryptocurrency wallet every 10 minutes, with an average of 35 miners competing to create MiamiCoin within the same period of time. Funds from those newly mined MiamiCoin goes to the city itself, Patrick Stanley, the community lead of CityCoins, told FOX Business.

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That means total when the vote took place is around $4.5 million.

It was announced early this week that Miami voted in favor of accepting crypto and be able to access more than $4.5 million worth of MiamiCoin. The funds are said to be still growing as of this time.

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At this rate, the City will take in over $50 million in the first year. That is a decent part of the total budget.

However, there is another factor to this. MiamiCoin is produced just like Bitcoin, through a mining process. Thus, the generation will continue as long as miners exist.

The key is the City is going to hold onto the coins. This could really be a windfall if an economy can develop around the token. Naturally, the City can accept taxes and other fees paid in MiamiCoin. Instantly, it has a use case.

If, however, the citizens of Miami start to utilize it for commercial transactions, the value could appreciate a great deal. This could make the holdings of the City even more valuable.

Naturally things can be volatile in the early stages but if the City can start to get attention on what is taking place, the token could see much greater value.

Here is the latest chart from Coingecko:

miamicoin.png

Community Driven Tokens

Here is the bottom line: Everyone will be doing it.

The situation with the City of Miami is a proof-of-concept. It appears to be working. There is no reason to look down upon $4.5 million in a little over 30 days.

What is interesting is the process would be the same for any city, no matter the size. Imagine a smaller town doing something similar. Obviously, their token might not carry as much value on the open market yet the numbers could be of great impact.

The key here is that we see a built-in market. People are part of a community based upon where they live. Certainly, Miami is not a tight knit one with so many people. However, the opportunity does exist for each member to benefit from the token.

We see communities form in many different ways. In a few years, we are going to witness each one spin up a token. This is going to result in millions of new tokens created. Some will end up with great value if the network effect takes off. Others are going to find the grave almost as quickly as they are formed.

Nevertheless, this is truly ushering in the Age of Abundance. The MiamiCoin is a prime example of this. With 442,000 people according to the 2020 census, we are seeing each resident effectively having $10 per month generated by the MiamiCoin. Of course, it is not going directly into their pockets but, hopefully, over time, the City might be able to reduce taxes by a similar amount.

In any city or town in the developed world, $10 a month is not getting one very far. However, what if this process was repeated 100 times? Keep in mind, the residents of Miami do nothing for this money. How many other situations will exist like this as cryptocurrency expands?

For example, what if this same concept was adopted by the County and State. If that were to happen, a resident would see the City of Miami, Dade County, and the State of Florida, all generating money in a similar fashion. Each could easily set off network effects since there are built in communities at each level.

All of this is based upon where one physically lives. Naturally, when we turn to the online world, it can expand rapidly. Along with that, we also see how people get rewarded directly as opposed to it going into a government account which is only theoretical for each citizen.

In the end, cryptocurrency is literally printing money out of thin air. This is something that the central banks were doing for decades. Unlike them, however, we see money flowing into the hands of individuals. This creates a completely new economic paradigm.

We can expect this to continue as more people find their way to cryptocurrency. It does appear that the central banks with their fiat and Wall Street with their derivatives have some competition.

Anyone can now create these assets. That is world changing.


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Miami is definitely having a head start in the tokenization of everything and adopting blockchain technology at a real life usage level. I had a post about the Miami coin when the news came out and had it retweeted by the mayor of Miami. This guy is a smart one and will probably have that chair for many years to come.

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He is ahead of the curve, that is for sure. It is smart for him to keep pushing forward with it.

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A key point about MiamiCoin is that it is that it is set up and generated on the Smart City Platform (City Coin). This is a proof-of-stake model forked from the bitcoin chain. Stacks tokens staked also generate a small portion of bitcoin.

The Smart City Platform is specifically established to allow towns and cities to do exactly as you predict. In fact San Francisco is most likely the next to launch its own token. And according to the map on Citycoin's site it looks like 9 other US cities are gearing up to do the same. It is also worth noting that the platform is specifically designed to make crypto in general much easier to engage with and utilize for the average person without the need for more technical knowhow. Creating a bridge between the Hive ecosystem and the Smart City Platform would be a massive boost for the primary objectives of both of those systems.

One thing I believe will happen is that as more cities, counties and states adopt this a market will emerge for trading these tokens allowing friends and family to 'send' money to loved ones in need or to exchange them for travel uses. Much as with Hive, the potential use cases are almost limitless. The future has very exciting potential, how will it unfold?

Thanks for putting this info out there!

Blessed Be

What makes you think that San Francisco is likely to start a token?

Its one of those weird cities, for example, at MUNI, they have all these advances cameras that are so good they can zoom into a cigarette butt on the street, and move around.

At the same time, they are copying and pasting, and having to hand write reports because people don't know how to use the technology.

Just a couple of years ago they finally got email addresses for their bus drivers - they didn't feel they had the bandwidth to get everyone online.

This of course doesn't mean they won't start a coin, but I am wondering what intel you have that makes you guess that they will.

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It is on the Citycoin's website.

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That's hilarious.

My husband keeps saying they should re-wire the electric trains to make the mine bitcoin and turn the whole bus systems into crypto-hubs.

I laugh cause they can't even get email addresses for the bus drivers.

If this is put in place, and the City Workers get perks from it, my family and I will be very happy $$$$$

Yes this is not something that Miami did on its own. We will see how quickly other cities adopt it. I know San Francisco was next in line. I was not aware that a number of other cities lined up.

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It took me a couple days casually digging to find the map but it shows the other 9. I am just assuming that they are however it is probably a reasonable assumption.

Do they have anything in place to keep people from outside of the geographic area from mining the token? It would be interesting to know if anyone anywhere can mine the token. I guess since the city gets the tokens it doesn't really matter, but it could be a legal nightmare I think. Under the current system anyway.

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I think anyone can mine it. The miners get a percentage of the tokens also. So it is open to all.

No reasons anyone else cannot get into it.

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I wonder then if they have any safeguards in place to keep rogue players from monopolizing all the mining.

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I have not looked into it close enough.

This is not set up by the City of Miami but the platform CityCoin.

They are rolling out 8 or 9 other coins. San Francisco is next.

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Ah, okay. That does change things a bit!

Just wondering, will this have extra tax implications on the city? It seems like its borderline working as a money printing and generating income.

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City's dont pay taxes.

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I love the concept. Too much debt being created on the city level. Maybe New York should follow Miami. :)

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This is fascinating - I didn’t know that Miami had its own cryptocurrency! When other municipalities inevitably start replicating this win-win economic strategy, it will further increase mainstream crypto awareness and adoption.

It is going to spread if this one is successful. This is a way to really help the a city's finances.

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That Miamicoin is going to lifted many people in that country from poverty especially those people that bought it early,they will gain before those people that claim it will crash will come on board.
The coin will generate enough money to the government.
Thanks for the information

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I am not sure it will since it is not directed at any individuals that I can see. It is money that will eventually make it into the City's general fund.

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I hear you sir.thank you

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The whole space is moving too fast for uninformed people to even realize what is going on. I didn't know Miami Coin was a thing until now and after a few minutes of "research" it doesn't sound very interesting but I'm sure it will find its audience.

I actually fear that governments will just copy and paste what exchanges are doing, create a centralized ledger secured by their own nodes and sell that to the uninformed as "blockchain technology".

Another thing I don't understand is how this can be done without a referendum. They are introducing a new currency and won't even bother to ask the people what they think about it...

Expecting a complete shitshow whit this one tbh.

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La expansion de la cripto moneda es inevitable

Super interesting, looking forward to more cities jump into this

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