Crypto Millionaire Bankruptcy: Miami’s Huge Deficits

Cipher Nightclub Miami

Miami nightclubs mourn their now bankrupt cryptocurrency millionaire. According to some sources, some nightclubs in the region have already started accepting cryptocurrency payments.

Recently, however, in Miami, Florida, several nightclubs agreed to testify in an FT article about the sudden departure of some of their biggest clients.

These guys have remained true to the festive and very lucrative evenings that have served them over the past two years. Apparently, the crash of some cryptocurrency platforms like FTX has something to do with it.

Miami: The Crypto Wallet Capital of America

Apparently, after the massive losses from the FTX crash and ensuing market turmoil, emerging crypto billionaires have deserted Miami nightclubs.

Groot Hospitality, which owns some of the biggest nightclubs in Miami, confirmed that with their departure, the “crazy amount” they spent was gone.

Liv, Story, and Swan, for example, do not have direct access to cryptocurrencies, but belong to places where cryptocurrency millionaires like to show off.

Andrea Vimercati, former director of Groot Hospitality and now at Moxy Hotel, explained:

“Crypto millionaires want to prove they have no limits.”

However, that is no longer possible when the cryptocurrency market has wiped over $200 billion in three weeks and over $2 trillion in a year.

Regardless, Miami is no longer just a party spot; it has become the crypto wallet capital of the United States. Its mayor, Francis X. Suarez, successfully completed his mission.

There are many advantages to Suarez making his fortune on Bitcoin and showing his passion for the virtual currency. In fact, the American lawyer and politician has been receiving his salary in BTC, and despite the 40% drop in the price of Bitcoin in May 2022, he still has not changed his salary habits.

Additionally, Miami seems to have managed to steal the hosting of the world-renowned Bitcoin Summit from Los Angeles, where we got to see some of the biggest names in the ecosystem last year.

Inevitably, however, the wealth created by cryptocurrency speculation has benefited the more optimistic in addition to the enthusiasts. In this case, they only see Bitcoin and other tokens as objects of intense speculation and the possibility of making quick money.

FT Report: $10,000 in Crypto Recently Transferred

The rest of the FT report tells of the most impressive customer orders. Who, at times, ordered more than fifty bottles of the finest champagne without opening any of them.

Andrea Vimercati recalls, before mentioning the fact that such clients have now completely disappeared:

“They booked tables for $50,000. At first I wondered who these people were.”

Also, apparently they only need to be a guest at one of the most popular nightclubs called E11even with the famous rapper 50 Cent for one night, so they can come and celebrate the victory of the previous few days.

In these cases, the bills exceeded $1 million, according to some sources. Of course, all of this is paid for in cryptocurrencies, the director noted. The reason is, accepting cryptocurrencies has become unnecessary.

E11 is even starting to accept them in 2021, for a total of $6 million for the year. However, only $10,000 was transferred in cryptocurrency over the past three months.

Why Are Emerging Countries Using Cryptocurrency Payments More?

Last year, according to a report from the second edition of the Chainalysis Global Cryptocurrency Adoption Index, Vietnam, India and Pakistan saw a 880% increase in cryptocurrency prices and ranked among the top 20.

Clearly, the adoption of cryptocurrencies in emerging countries is increasingly driven by the depreciation of local currencies.

Specifically, Chainalysis’ report ranks 154 countries based on metrics such as peer-to-peer transaction volume, rather than total transaction volume, which typically favors developed nations with high levels of professional and institutional crypto.

Additionally, Chainalysis has stated that the purpose of the index is to understand the adoption of crypto by ordinary people and focus on use cases related to transactions and personal savings, rather than transactions and speculation.

The indicators are weighted to incorporate the wealth of the average person and the value of money in general in a given country. The analysis found that the top 20 countries for cryptocurrency adoption are mostly emerging economies, including Togo, Colombia and Afghanistan.

Meanwhile, the U.S. slipped from sixth to eighth, and China, which cracked down on crypto last spring, slipped from fourth to thirteenth.

Source of information: Compiled from CRYPTONOMIST by 0x Information.Copyright belongs to the author Alessia Pannone, without permission, may not be reproduced

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