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MiamiCoin

DefinitelyNotHollywoodColt

By DefinitelyNotHollywoodColt
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DefinitelyNotHollywoodColt

DefinitelyNotHollywoodColt 12301

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https://apnews.com/article/cryptocurrency-technology-business-miami-7e0ce407441116c46c4c9457442c3cd7
 

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Mayor Francis Suarez said Thursday during an interview with a cryptocurrency news site that he was planning to convert the millions of dollars in proceeds MiamiCoin has created into a Bitcoin “dividend.”

“We’re going to be the first city in America to give a Bitcoin yield as a dividend directly to its residents,” Suarez said in the inteview with Coindesk.com. “We’re going to create digital wallets for our residents, and we’re going to give them Bitcoin directly from the yield of MiamiCoin.”

Explain it to me like I’m a 4 year old.

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UT_OB1

UT_OB1 2224

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1 hour ago, DefinitelyNotHollywoodColt said:

https://apnews.com/article/cryptocurrency-technology-business-miami-7e0ce407441116c46c4c9457442c3cd7
 

Explain it to me like I’m a 4 year old.

 

1 hour ago, TornACL said:

It's like the opposite of most cities, who run a deficit and then pay out a negative dividend in the form of higher taxes. 

So torn, clearly you don’t have a 4 year old (or your about Brats age and you’ve forgotten what it’s like to have one). What’s you 1 month old explanation?  
 

Nothing in that article explains why I’d want to buy MiamiCoin. Or mine it.  Or what it is for. Or why they are making so much money off it they can affirm to pass out Bitcoins. Why is that money not better used on education/roads/schools. 

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Nice Guy Eddie

Nice Guy Eddie 13515

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I'm far from an expert but I can't really see how this works. It will be cool to watch and perhaps they have a workable system.

However the only way that I can see this work is if the city holds onto the vast majority of the MiamiCoin. Somehow they create demand so that crypto investors want to buy/hold MiamiCoin. Then the city can slowly sell of their holdings, exchange for Bitcoin and ultimately pay out a Bitcoin dividend.

How you create that MiamiCoin demand is always the $1b question. The rest of the process is the easy part. If MiamiCoin goes live, I might throw a few bucks at it as a gamble.

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Satoshi

Satoshi 129

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2 hours ago, Nice Guy Eddie said:

I'm far from an expert but I can't really see how this works. It will be cool to watch and perhaps they have a workable system.

However the only way that I can see this work is if the city holds onto the vast majority of the MiamiCoin. Somehow they create demand so that crypto investors want to buy/hold MiamiCoin. Then the city can slowly sell of their holdings, exchange for Bitcoin and ultimately pay out a Bitcoin dividend.

How you create that MiamiCoin demand is always the $1b question. The rest of the process is the easy part. If MiamiCoin goes live, I might throw a few bucks at it as a gamble.

https://www.citycoins.co/miamicoin
 

It’s created using smart contracts on the Stacks (STX) protocol. The rewards the city receives in STX can then be used to receive Bitcoin. 
 

https://www.stacks.co

 

 

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DefinitelyNotHollywoodColt

DefinitelyNotHollywoodColt 12301

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21 hours ago, Satoshi said:

https://www.citycoins.co/miamicoin
 

It’s created using smart contracts on the Stacks (STX) protocol. The rewards the city receives in STX can then be used to receive Bitcoin. 
 

https://www.stacks.co

 

 

So somebody gets to run a computer and find “money”, and every time they find 1 unit of “money” $.30 goes to the city of Miami and the person that found the “money” gets to keep $.70?

I understand the utility of blockchain technology, but wasn’t one of the attractive things about Bitcoin the limited supply? MiamiCoin isn’t technically creating more Bitcoin but isn’t it just artificially creating more of it in someway?

I’m hungover and sweating on the shitter as I type this so someone explain it to me like I’m hungover and sweating on the shitter.

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Satoshi

Satoshi 129

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46 minutes ago, DefinitelyNotHollywoodColt said:

So somebody gets to run a computer and find “money”, and every time they find 1 unit of “money” $.30 goes to the city of Miami and the person that found the “money” gets to keep $.70?

I understand the utility of blockchain technology, but wasn’t one of the attractive things about Bitcoin the limited supply? MiamiCoin isn’t technically creating more Bitcoin but isn’t it just artificially creating more of it in someway?

I’m hungover and sweating on the shitter as I type this so someone explain it to me like I’m hungover and sweating on the shitter.

It doesn’t violate the scarcity of bitcoin. If you own stacks and lock them up to contribute the security of that network you get rewarded bitcoin. They use a different consensus mechanism that I’m not familiar with Proof of Transfer which involves bitcoin moving around. I own some stacks just based off a friend’s rec and the fact that it interacts with bitcoin. Have not yet started stacking.


https://www.stacks.co/stacking

 

42 minutes ago, Neonmoon said:

How do the 90% of citizens who’ve never heard of bitcoin and still pay bills with checks get access to this?

I imagine it will involve some kind of simple wallet set up. Everyone has smart phones. 
 

24 minutes ago, HRSchenker said:

I've been reading up on this and still have no idea how to mine for these coins. I'm only in my goddamn 30s. How the fuck is this shit already over my head?

I’m in the same boat, but a little older. Life comes at you fast. 

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Biff Tannen

Biff Tannen 45692

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5 hours ago, Satoshi said:

It doesn’t violate the scarcity of bitcoin. If you own stacks and lock them up to contribute the security of that network you get rewarded bitcoin. They use a different consensus mechanism that I’m not familiar with Proof of Transfer which involves bitcoin moving around. I own some stacks just based off a friend’s rec and the fact that it interacts with bitcoin. Have not yet started stacking.


https://www.stacks.co/stacking

 

I imagine it will involve some kind of simple wallet set up. Everyone has smart phones. 
 

I’m in the same boat, but a little older. Life comes at you fast. 

What platform do you use to buy STX?  Coinbase doesn’t support it. 

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Neonmoon

Neonmoon 38129

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22 hours ago, Satoshi said:

It doesn’t violate the scarcity of bitcoin. If you own stacks and lock them up to contribute the security of that network you get rewarded bitcoin. They use a different consensus mechanism that I’m not familiar with Proof of Transfer which involves bitcoin moving around. I own some stacks just based off a friend’s rec and the fact that it interacts with bitcoin. Have not yet started stacking.


https://www.stacks.co/stacking

 

I imagine it will involve some kind of simple wallet set up. Everyone has smart phones. 
 

I’m in the same boat, but a little older. Life comes at you fast. 

If I know old people, using their smart phone to set up their bitcoin wallet is going to be easy peasy

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Satoshi

Satoshi 129

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8 hours ago, Neonmoon said:

If I know old people, using their smart phone to set up their bitcoin wallet is going to be easy peasy

Well a third world country managed to rollout a lightning network wallet and onboard their population so I think Miami can figure out how to make it and market it. 

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Neonmoon

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15 hours ago, Satoshi said:

Well a third world country managed to rollout a lightning network wallet and onboard their population so I think Miami can figure out how to make it and market it. 

El Salvador didn’t onboard their population. Some people use it.

https://www.coindesk.com/tech/2021/03/31/strike-launches-bitcoin-lightning-payment-app-in-el-salvador-full-eu-support-is-next/

https://www.reuters.com/technology/glimpse-under-hood-el-salvadors-bitcoin-experiment-2021-09-07/
 

Quote

The use of bitcoin will be optional, nobody will receive bitcoin if they don't want it... If someone receives a payment in bitcoin they can choose to automatically receive it in dollars," Bukele said in late June. read more

Its use has helped overcome some technical and practical obstacles to using bitcoin, Bitcoin Beach's founders say. But some in El Zonte say they rarely use bitcoin because of problems with outdated and battered smartphones or insufficient data plans.

A 2020 study by Microsoft and the Interamerican Development Bank concluded that El Salvador had the second lowest internet penetration of 20 countries in Latin America and the Caribbean. At 45%, connectivity was only lower in neighboring Honduras.

Salvadorans are also wary of volatility. Bitcoin can shed hundreds of dollars in value in a day.

 

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Satoshi

Satoshi 129

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1 hour ago, Neonmoon said:

El Salvador didn’t onboard their population. Some people use it.

https://www.coindesk.com/tech/2021/03/31/strike-launches-bitcoin-lightning-payment-app-in-el-salvador-full-eu-support-is-next/

https://www.reuters.com/technology/glimpse-under-hood-el-salvadors-bitcoin-experiment-2021-09-07/
 

 

Of course only some people use it. I’d say 46% of population having the wallets is a nationwide rollout though. 
 

https://www.forbes.com/sites/theapothecary/2021/10/07/in-el-salvador-more-people-have-bitcoin-wallets-than-traditional-bank-accounts/?sh=34f072520b57

 

Spoiler

On September 7, 2021, El Salvador’s Bitcoin Law granting the currency legal tender status went into effect. Remarkably, in just one month, there are more Salvadorans with bitcoin wallets than traditional bank accounts.

After Salvadoran president Nayib Bukele announced that the country would adopt bitcoin as an official currency, there were doubters at home and abroad. 

Opponents of Bukele’s government protested the move, vandalizing one of the Chivo ATM machines that Salvadorans can use to exchange bitcoin for U.S. dollars (El Salvador’s other official currency). Mary Anastasia O’Grady, Americas columnist for the Wall Street Journal, described the Bitcoin Law as a “scam,” mocking Chivo’s “rocky start.”

It appears, however, that supporters of the Bitcoin Law may have the last laugh.

Three million people have downloaded the Chivo bitcoin wallet, according to Bukele, amounting to 46 percent of the population. By contrast, as of 2017, only 29 percent of Salvadorans had bank accounts.

Notably, Salvadorans appear to be converting U.S. dollars into bitcoin and holding onto the digital currency, according to Bukele. “The incoming USD quadruples the outflow,” tweeted Bukele on October 6.

 

The Chivo numbers don’t tell the complete story. Salvadorans don’t have to use Chivo, the government’s officially sponsored bitcoin wallet, if they don’t want to. Any Lightning Network-enabled bitcoin wallet, such as the Bitcoin Beach Wallet or Jack Maller’s Strike can be used to interact with Salvadoran merchants. 

Bitcoin adoption is likely to continue to rise in El Salvador; on September 29, Bukele announced that Chivo had “negotiated with the largest gas stations in the country” to reduce the price of gasoline by 20 cents per gallon for those who pay through the app. That’s on top of the $30 in seed money that the government has deposited in every Salvadoran’s Chivo account.

There remain hurdles to universal bitcoin usage in El Salvador. Merchant adoption remains gradual; a survey by the Salvadoran Foundation for Economic and Social Development found that 93 percent of Salvadoran companies reported receiving no payments in bitcoin. And the Chivo wallet enables instantaneous conversion of bitcoin to and from dollars, obviating the need for consumers to spend or save in dollars if they don’t want to.

Nonetheless, the wide adoption of the Chivo wallet is impressive, especially in comparison to traditional banking: as Bukele says, “very surprising so early in the game,” especially in September, when bitcoin’s price did not appreciate. 

Most importantly, the impact of Chivo is likely greater among low-income Salvadorans who have access to smartphones but not banks. Among El Salvador’s two poorest quintiles, many of whom live in rural areas, only 6 percent have bank accounts. If El Salvador’s poorest can benefit from bitcoin, everyone can.

 

Edited by Satoshi
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