Will FTX's demise shift sinking Miami's crypto embrace? (commentary)

[ad_1] <div id="post-263409"> <div class="bulletpoints"><ul><li>Inspired by a Bitcoin-friendly mayor, Miami has develop into a cryptocurrency capital, of kinds.</li><li>This appears ironic as a result of low-lying metropolis is extraordinarily weak to sea stage rise, and the crypto business has one of many heaviest carbon footprints, thereby hastening that rise because of local weather change.</li><li>Earlier than FTX imploded just lately, the crypto investor Sam Bankman-Fried hoped to show Miami right into a hub for international cryptocurrency. “Hopefully, the demise of FTX will derail such vainglorious fantasies,” a brand new op-ed argues.</li><li>This publish is a commentary. The views expressed are these of the writer, not essentially Mongabay.</li></ul></div> Hopefully, the current implosion of cryptocurrency change FTX, and the backlash towards crypto traders like Sam Bankman-Fried, will immediate the town of Miami to rethink its financial priorities. FTX, whose 1.2. million customers <a target="_blank" href="https://www.bbc.com/news/technology-63612489" data-wpel-link="external" rel="external noopener">used the exchange</a> to buy cryptocurrency tokens equivalent to Bitcoin, just lately filed for chapter. Amidst the demise of FTX, <a target="_blank" href="https://www.euronews.com/next/2022/11/22/bitcoin-plunges-to-a-2-year-low-as-ftx-collapse-contaminates-industry" data-wpel-link="external" rel="external noopener">Bitcoin has plunged</a> together with your complete crypto market. Although definitely regarding for traders, the FTX imbroglio might supply a respite for the setting by discouraging an ongoing crypto craze. Bitcoin transactions <a target="_blank" href="https://news.mongabay.com/2022/12/climate-damage-from-bitcoin-mining-grew-more-than-125-times-worse-in-just-five-years/" data-wpel-link="internal" rel="noopener">consume a lot of energy</a> – the lion’s share of which comes from fossil fuels – since so-called “mining rigs” are comprised of highly effective computer systems working in tandem to unravel advanced mathematical issues. Bitcoin is so damaging to the setting, in truth, that specialists estimate the digital token <a target="_blank" href="https://thehill.com/opinion/energy-environment/569395-cryptocurrency-makes-the-climate-crisis-worse" data-wpel-link="external" rel="external noopener">now consumes</a> extra power than the entire of Argentina, a nation of 45 million individuals. Certainly, the carbon footprint of a sole Bitcoin transaction is equal to nearly two million Visa transactions, and 135,229 hours watching YouTube. Sadly, billionaires equivalent to Bankman-Fried have been seemingly impervious to such environmental realities. Different moguls equivalent to Elon Musk, in the meantime, have pledged to struggle <a target="_blank" href="https://news.mongabay.com/list/climate-change" data-wpel-link="internal" rel="noopener">climate change</a>. Nonetheless, the Tesla boss has had an <a target="_blank" href="https://www.coolerfuture.com/blog/tesla-sustainability" data-wpel-link="external" rel="external noopener">odd on-and-off</a> relationship with Bitcoin, to not point out the tech CEO’s personal Boring Firm <a target="_blank" href="https://mashable.com/article/elon-musk-boring-company-dogecoin" data-wpel-link="external" rel="external noopener">which conducts business</a> within the digital foreign money Dogecoin. <figure id="attachment_263237" class="wp-caption alignnone"><img class="size-medium wp-image-263237" src="https://imgs.mongabay.com/wp-content/uploads/sites/20/2022/12/04155157/Cummings_mining-farm-768x512.jpg" alt="Large-scale commercial mining farms draw electricity to power hundreds or even thousands of computers to mine as competitively as possible. Photo by >Marko Ahtisaari on Flickr and licensed under CC BY 2.0." width="768" height="512"/><figcaption class="wp-caption-text">Giant crypto ‘mining rigs’ draw huge quantities of electrical energy to run tons of or 1000's of computer systems that ‘mine’ digital currencies. Picture by <a target="_blank" href="https://www.flickr.com/photos/moia/" data-wpel-link="external" rel="external noopener">Marko Ahtisaari</a> on <a target="_blank" href="https://www.flickr.com/photos/moia/14266642578/" data-wpel-link="external" rel="external noopener">Flickr</a> and licensed below <a target="_blank" href="https://creativecommons.org/licenses/by/2.0/legalcode" data-wpel-link="external" rel="external noopener">CC BY 2.0</a>.</figcaption></figure> ‘Miami Crypto Vice’ In recent times, crypto traders have <a target="_blank" href="https://news.mongabay.com/2022/06/environmental-paradise-or-dystopian-debacle-promise-and-peril-of-futuristic-island-communities-commentary/" data-wpel-link="internal" rel="noopener">taken their ambitions to a new level by swarming to the beach</a>. Inspired by Bitcoin-friendly mayor Francis Suarez, Miami has spearheaded a <a target="_blank" href="https://www.bloomberg.com/features/2022-miami-crypto-capital-of-us/?leadSource=uverify%20wall" data-wpel-link="external" rel="external noopener">veritable crypto revolution</a> that includes startups and enterprise capital. Attracted by the solar, low-tax setting and lax virus restrictions throughout COVID, traders hope South Florida will develop into “Miami Crypto Vice.” Metropolis streets are lined with adverts for tokens that eating places and golf equipment are beginning to settle for, and murals selling NFTs, or non-fungible tokens, dot the panorama. “BitBasel,” a crypto-art and NFT tech hub for artists and builders, <a target="_blank" href="https://cointelegraph.com/magazine/2022/07/13/crypto-city-ultimate-guide-to-miami" data-wpel-link="external" rel="external noopener">is flourishing</a> in stylish Wynwood. In downtown Miami, in the meantime, luxurious residences <a target="_blank" href="https://cointelegraph.com/news/newly-built-miami-residential-tower-becomes-bridge-between-cryptocurrency-and-real-estate" data-wpel-link="external" rel="external noopener">on sale for $600,000</a> enable traders “to make the most of risky crypto property to buy extra steady actual property property.” Bitcoin A.T.M.s <a target="_blank" href="https://www.nytimes.com/2021/06/05/technology/miami-worship-bitcoin.html" data-wpel-link="external" rel="external noopener">are popping up</a>, crypto fusion catering and even “Bitcoin Brunches” are booming, and born-again followers cheer the rise of Bitcoin dictators in Central America. The suburb of Miami Lakes permits residents to pay all municipal charges in crypto. The Miami Seashore Conference Heart, in the meantime, <a target="_blank" href="https://commercialobserver.com/2022/11/ftx-turmoil-undermines-miamis-crypto-strategy/" data-wpel-link="external" rel="external noopener">holds an annual</a> Bitcoin Convention, and the Inter Miami soccer group wears pink shirts emblazoned with XBTO, a crypto change. As if that weren't sufficient, potential actual property traders can get a digital sneak peek of their purchases by placing on futuristic VR headsets which “welcome customers to the metaverse.” Nuclear crypto? Earlier than his empire imploded, Bankman-Fried hoped to show Miami right into a hub for international cryptocurrency. Certainly, the investor <a target="_blank" href="https://www.miaminewtimes.com/news/five-francis-suarez-cryptocurrency-tweets-from-before-the-ftx-downfall-15676667" data-wpel-link="external" rel="external noopener">purchased the</a> naming rights to American Airways Enviornment, residence to the Miami Warmth basketball group. Native officers <a target="_blank" href="https://wsvn.com/entertainment/american-airlines-arena-to-officially-be-renamed-ftx-arena/" data-wpel-link="external" rel="external noopener">approved a partnership</a> with the crypto mogul, which might have turned the stadium into an “FTX enviornment.” As just lately as September, mayor Suarez <a target="_blank" href="https://commercialobserver.com/2022/11/ftx-turmoil-undermines-miamis-crypto-strategy/" data-wpel-link="external" rel="external noopener">effusively praised</a> FTX when the agency introduced plans to maneuver its U.S. headquarters from Chicago to Miami. Going into public relations overdrive, Suarez remarked that environmental considerations over cryptocurrency mining had been misconstrued. Such considerations, <a target="_blank" href="https://beincrypto.com/miami-mayor-francis-suarez-continues-pitching-miners-on-south-florida/" data-wpel-link="external" rel="external noopener">he argued</a>, “come from the truth that plenty of the mining was being completed in coal-producing nations.” Buyers equivalent to Bankman-Fried, the mayor added, might rely on supposed clear power choices, most particularly nuclear energy. However as a way to faucet such power, Suarez would want the cooperation of close by Turkey Level nuclear energy plant, which is owned by Florida Energy & Mild (FPL). Throughout talks, Suarez and FPL mentioned whether or not mining services needs to be situated close to Turkey Level, although the plant <a target="_blank" href="https://www.bnnbloomberg.ca/miami-mayor-suarez-pitches-crypto-miners-on-area-s-nuclear-plant-1.1658021" data-wpel-link="external" rel="external noopener">isn’t technically located</a> in Suarez’s jurisdiction, <a target="_blank" href="https://news.bloomberglaw.com/environment-and-energy/nextera-nuclear-plant-could-have-long-life-but-face-rising-seas?context=article-related" data-wpel-link="external" rel="external noopener">but rather south</a> of Miami on the shores of Biscayne Bay. Counting on Turkey Level to provide crypto traders, nonetheless, is probably not smart. Certainly, the plant has confronted stiff opposition from environmentalists, who cost FPL is liable for harmful leaks of hypersaline water. <a target="_blank" href="https://www.cbsnews.com/miami/news/demonstrators-demand-nuclear-plant-shut-down-after-leaks/" data-wpel-link="external" rel="external noopener">Advocates worry</a> such wastewater accommodates radioactive isotopes, which in flip pose a threat to consuming water saved within the Biscayne aquifer. Activists search closure of the growing older plant, which in any case is threatened by local weather change itself. In reality, rising seas and hurricanes pose a threat to the plant in addition to its cooling system. Worryingly, the Atlantic Ocean <a target="_blank" href="https://news.bloomberglaw.com/environment-and-energy/nextera-nuclear-plant-could-have-long-life-but-face-rising-seas?context=article-related" data-wpel-link="external" rel="external noopener">is projected to rise</a> by greater than two toes alongside South Florida’s coast by mid-century, and in tandem with such modifications, the peak of hurricane storm surges can even improve, along with flooding and injury. If something, the “<a target="_blank" href="https://www.nytimes.com/2022/09/29/us/hurricane-ian-florida-damage.html" data-wpel-link="external" rel="external noopener">staggering scale of wreckage</a>” linked to Hurricane Ian has solely served to intensify such fears. <figure id="attachment_263411" class="wp-caption alignnone"><img class="size-medium wp-image-263411" src="https://imgs.mongabay.com/wp-content/uploads/sites/20/2022/12/08222340/risingseas600-768x512.jpeg" alt="High tide flooding in downtown Miami. The useful life of roads and other infrastructure is shortened dramatically by repeated saltwater inundation. Image via Wikimedia Commons." width="768" height="512"/><figcaption class="wp-caption-text">Excessive tides usually flood downtown Miami as of late. Picture by way of Wikimedia Commons.</figcaption></figure> Bitcoin Bunker, sinking coastlines Hopefully, the demise of FTX will derail such vainglorious fantasies. However even with out Sam Bankman-Fried taking part in an outsized position, crypto traders have contributed to international warming and Florida’s sinking shoreline by way of energy-wasting crypto transactions. What's extra, such traders have mockingly participated in an actual property increase which is on the mercy of rising sea ranges and local weather change, from eating places to spas to retailers to nightclubs and inns. “Miami and cryptocurrency really are a match made in hell,” notes <a target="_blank" href="https://www.miaminewtimes.com/news/five-francis-suarez-cryptocurrency-tweets-from-before-the-ftx-downfall-15676667" data-wpel-link="external" rel="external noopener">Miami New Times</a>. “Whereas the town is sinking beneath sea stage with the remainder of South Florida, digital currencies are additionally taking a nosedive into the drink.” Rising sea ranges threaten profitable beachfront properties in Miami Seashore and neighboring Indian Creek. Drain shops are under high-tide stage throughout surges, which results in saltwater coming into the drainage system, to not point out flooded roads. In contrast to different coastal cities, Miami lies on a mattress of silt which acts like a sponge, so seawater encroaches on freshwater aquifers. Due to these particularities, seawalls <a target="_blank" href="https://www.thenation.com/article/environment/florida-flooding-miami/" data-wpel-link="external" rel="external noopener">will do nothing</a> to deal with the state of affairs, and a few politicians are overtly advocating a “managed retreat.” Others have pushed for “resilience” and “inexperienced infrastructure” <a target="_blank" href="https://www.nytimes.com/2021/06/02/us/miami-fl-seawall-hurricanes.html" data-wpel-link="external" rel="external noopener">including</a> dune restoration, sea grasses, coral reefs and mangroves. Seeking to the previous <a target="_blank" href="https://www.miaminewtimes.com/news/miami-beachs-400-million-sea-level-rise-plan-is-unprecedented-but-not-everyone-is-sold-8398989" data-wpel-link="external" rel="external noopener">might make sense</a>, since Miami Seashore was once a swamp, and mangroves had been as soon as plentiful. Startups, in the meantime, are pushing the notion of floating properties, however <a target="_blank" href="https://www.thenation.com/article/environment/florida-flooding-miami/" data-wpel-link="external" rel="external noopener">with a hefty price tag</a> of $5.5 million, few will be capable to embrace high-tech options. In one more ironic wrinkle, it might appear the rich might care much less if one in every of their secondary beachfront residences winds up flooding, since <a target="_blank" href="https://www.vanityfair.com/news/2015/11/miami-beach-global-warming" data-wpel-link="external" rel="external noopener">condos are viewed</a> as tradable commodities. “Billionaire Bunker” is an unique enclave situated on <a target="_blank" href="https://www.forbes.com/sites/petertaylor/2022/05/11/exclusive-first-look-this-59-million-waterfront-mansion-in-miamis-billionaire-bunker-is-americas-most-expensive-bitcoin-real-estate-deal-ever/?sh=51c8a3f962c7" data-wpel-link="external" rel="external noopener">Indian Creek Island</a> close to Miami Seashore, and performs <a target="_blank" href="https://profilemiamire.com/miamirealestate/2022/5/13/check-out-this-59-million-indian-creek-island-billionaire-bunker-you-can-buy-in-crypto-built-by-todd-michael-glaser" data-wpel-link="external" rel="external noopener">home to a rolodex</a> of high-profile figures together with Jared Kushner and Ivanka Trump, singer Julio Iglesias and investor Carl Icahn. Soccer quarterback Tom Brady, <a target="_blank" href="https://www.reuters.com/legal/ftx-founder-bankman-fried-sued-us-court-over-yield-bearing-crypto-accounts-2022-11-16/" data-wpel-link="external" rel="external noopener">who has promoted FTX</a>, additionally lives on the property. Although the island <a target="_blank" href="https://riskfinder.climatecentral.org/place/indian-creek.fl.us?comparisonType=place&forecastType=NOAA2017_int_p50&level=3&unit=ft" data-wpel-link="external" rel="external noopener">is exposed to flooding</a> from local weather change, that hasn’t stopped the crypto crowd from eager to make a killing: one native mansion sells for an eye-watering $59 million, and purchasers could pay in Bitcoin. The “tropical fashionable playhouse” comes with a “prep kitchen,” fitness center, media room, four-car storage, <a target="_blank" href="https://www.youtube.com/watch?v=VInYSHBLnqM" data-wpel-link="external" rel="external noopener">dockage for yachts</a> and “lush landscaping.” Ideally, actual property brokers consider the mansion may be appropriate for a tech bachelor sporting an “prolonged entourage.” <figure id="attachment_258927" class="wp-caption alignnone"><img class="size-medium wp-image-258927" src="https://imgs.mongabay.com/wp-content/uploads/sites/20/2022/08/07170707/cryptocurrency-3423264_1920-768x512.jpg" alt="Three forms of cryptocurrency. Image via Pixabay." width="768" height="512" srcset="https://imgs.mongabay.com/wp-content/uploads/sites/20/2022/08/07170707/cryptocurrency-3423264_1920-768x512.jpg 768w, https://imgs.mongabay.com/wp-content/uploads/sites/20/2022/08/07170707/cryptocurrency-3423264_1920-1200x800.jpg 1200w" sizes="(max-width: 768px) 100vw, 768px"/><figcaption class="wp-caption-text">Three types of cryptocurrency. Picture by WorldSpectrum by way of <a target="_blank" href="https://pixabay.com/photos/cryptocurrency-concept-altcoins-3423264/" data-wpel-link="external" rel="external noopener">Pixabay</a>.</figcaption></figure> It stays to be seen whether or not the autumn of Bankman-Fried will lead native officers to rethink their messianic religion in crypto. Whereas Suarez was beforehand bullish on crypto, the Miami mayor <a target="_blank" href="https://www.miaminewtimes.com/news/five-francis-suarez-cryptocurrency-tweets-from-before-the-ftx-downfall-15676667" data-wpel-link="external" rel="external noopener">has been fairly</a> quiet in regards to the FTX implosion as of late. The demise of Bankman-Fried has hit Miami-Dade County and the Miami Warmth “<a target="_blank" href="https://www.bondbuyer.com/news/after-fall-of-ftx-miami-dade-county-looks-for-new-arena-sponsor" data-wpel-link="external" rel="external noopener">right in the arena</a>,” nonetheless. Certainly, officers now need the bankrupt change firm’s brand eliminated for its sports activities enviornment <a target="_blank" href="https://www.npr.org/2022/11/24/1139164190/ftx-bankruptcy-miami-heat-arena-naming-rights" data-wpel-link="external" rel="external noopener">and have asked</a> a federal choose to finish FTX’s profitable naming rights deal. In the meantime, crypto traders <a target="_blank" href="https://www.reuters.com/legal/ftx-founder-bankman-fried-sued-us-court-over-yield-bearing-crypto-accounts-2022-11-16/" data-wpel-link="external" rel="external noopener">have sued</a> Bankman-Fried in addition to “Bitcoin Bunker” quarterback Brady, claiming that FTX engaged in misleading practices. There are indicators an environmental backlash towards crypto may additionally be within the works. Lately, governor Kathy Hochul of New York <a target="_blank" href="https://www.curbed.com/2022/11/crypto-mining-moratorium-hochul-trend.html" data-wpel-link="external" rel="external noopener">signed the country’s first moratorium</a> on crypto mining, which is able to quickly halt new issuance and renewal of permits for 2 years. The invoice applies to new fossil-fuel crypto crops counting on in depth quantities of power to provide computer systems. The pause constitutes a victory for environmentalists, who argued that crypto undermined the state’s aspiration to scale back emissions. In recent times, there was a proliferation of upstate crypto crops, which have repurposed growing older aluminum mills and coal operations whereas spewing smoke into the air. It's uncertain, nonetheless, whether or not such environmental consciousness can acquire a lot traction in Florida, which has now develop into a deep pink state, politically, in distinction to New York. Whereas <a target="_blank" href="https://commercialobserver.com/2022/11/ftx-turmoil-undermines-miamis-crypto-strategy/" data-wpel-link="external" rel="external noopener">some Miami investors</a> lament FTX’s fall, which has been “brutal” for crypto, others consider the town “has gained a lot from its affiliation with crypto and stands to lose little from the present collapse of the business.” Within the long-run, there are hopes Miami’s hyperlinks to crypto will rework the city from “only a tourism and hospitality enclave into a brand new and rising international tech haven,” changing into the “subsequent Silicon Valley of Web3.” Plainly even within the wake of lethal storms, eroding coastlines and local weather change, Florida could not study its lesson whereas persevering with to pursue grandiose delusions of folly. Nikolas Kozloff is the writer of <a target="_blank" href="https://www.nikolaskozloff.com/no_rain_in_the_amazon__how_south_america_s_climate_change_affects_the_entire_plan_92325.htm" data-wpel-link="external" rel="external noopener">No Rain in the Amazon: How South America’s Climate Change Affects the Entire Planet</a>, in addition to scores of <a target="_blank" href="https://www.nikolaskozloff.com/blog/tags/environment%20and%20climate%20change" data-wpel-link="external" rel="external noopener">articles</a> in regards to the setting. Associated listening from Mongabay’s podcast: Writer Brett Scott discusses the numerous pitfalls of cryptocurrencies for conservation and journalist Judith Lewis Mernit shares her reporting on the Bitcoin mining surge in Texas that spiked power costs, pay attention right here: <iframe title="Embed Player" src="https://play.libsyn.com/embed/episode/id/23995815/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/444444/time-start/00:00:00/hide-playlist/yes/download/yes" height="128" width="100%" scrolling="no" allowfullscreen="" webkitallowfullscreen="true" mozallowfullscreen="true" oallowfullscreen="true" msallowfullscreen="true" style="border: none;" class="iframe-class" frameborder="0"></iframe> Associated studying right here at Mongabay: <blockquote class="wp-embedded-content" data-secret="f6ZVYkRqtE"><a target="_blank" href="https://news.mongabay.com/2022/12/climate-damage-from-bitcoin-mining-grew-more-than-125-times-worse-in-just-five-years/" data-wpel-link="internal" rel="noopener">Climate damage from Bitcoin mining grew more than 125 times worse in just five years</a></blockquote> <iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“Climate damage from Bitcoin mining grew more than 125 times worse in just five years” — Conservation news" src="https://news.mongabay.com/2022/12/climate-damage-from-bitcoin-mining-grew-more-than-125-times-worse-in-just-five-years/embed/#?secret=j7F9adFSIC#?secret=f6ZVYkRqtE" data-secret="f6ZVYkRqtE" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe>

</div> [ad_2] <a href="https://news.google.com/__i/rss/rd/articles/CBMiYmh0dHBzOi8vbmV3cy5tb25nYWJheS5jb20vMjAyMi8xMi93aWxsLWZ0eHMtZGVtaXNlLXNoaWZ0LXNpbmtpbmctbWlhbWlzLWNyeXB0by1lbWJyYWNlLWNvbW1lbnRhcnkv0gEA?oc=5">Source link </a>