The recent weeks have not been good to crypto enthusiasts in general and investors in particular. The overall response of the global political leader is of a growing apprehension of the assault on conventional economics and thus there is a rush to regulate this market.
Sometimes the response is overzealous as was in the case of China and South Korea while sometimes its benevolent authoritarianism to choke the profitability with state intervention as in case of EU. These behaviors have unleashed the exodus of crypto miners and investors.
The place which has attracted these enthusiasts are Russia, Eastern Europe, Iceland, Canada and now Puerto Rico. The island is a protectorate of the United States which was recently ravaged by the hurricane Maria.
The overzealous regulatory impulses are driving crypto millionaires and billionaires to buy property in Puerto Rico in Old San Juan part of the city which was devastated. The flow of digital money is bound to revitalize the economy and provide some infrastructure support. The aim is to create a space working solely on digital currency.
Puerto Rico offers no capital gain tax, no federal personal income tax, and favorable business taxes. The Americans are finding much easier to accrue more profit without renouncing their citizenship which is an extra bonus.
The local government is enthusiastic and planning to host more and more crypto investors to boost its economy. Recently, the governor agreed to participate in ‘Puerto Crypto’ summit planned in March.
The recent arrivals to the island include people like Stephen Morris who tells NYT that this is an opportunity to rebuild Puerto Rico. Matt Clemenson, co-founder of blockchain site Lottery.com claimed that benevolent capitalism is useful in rebuilding. Videocon founder Halsey Minor explicitly said that the US is trying to choke this new economy and thus shift to Puerto Rico is more profitable to both.
The idea of the creation of a space free of governmental regulation to release the hidden potential of individual innovation is something upon which the technological supremacy of United States rests upon.
This is the bedrock of the libertarian economics which most billionaires and crypto users adhere to. The replication of this idea is crucial for crypto users in order to create global hotspots to generate this brave new world vision.