Crypto-millionaires broke: significant deficit in Miami

Miami nightclubs mourn their crypto-millionaires who are now broke. According to some sources, some nightclubs in the area had started accepting cryptocurrency payments.

However, recently in Miami, Florida, several nightclubs agreed to testify in a Financial Times article about the sudden departure of some of their big customers. 

These had always been loyal to the festive, and very profitable, evenings that have been offered to them for the past two years. Apparently, the collapse of some crypto platforms like FTX has something to do with it.

Miami: the crypto-wallet capital of the United States

Apparently, the emerging rich in cryptocurrency have deserted Miami’s nightclubs after the huge losses caused by the collapse of FTX and the subsequent market turmoil. 

Along with their desertion, the “insane sums” they were spending have also disappeared, confirmed the company Groot Hospitality, which owns some of Miami’s biggest nightclubs. 

For example, Liv, Story and Swan, were not directly exposed to cryptocurrencies but were among those places where crypto-millionaires enjoyed showing off. 

Andrea Vimercati, former director of Groot Hospitality who now works for Moxy Hotel, explained: 

“Crypto-millionaires wanted to prove that they have no limits.”

However, that was no longer possible when the cryptocurrency market let more than $200 billion evaporate in three weeks, and more than $2 trillion in a year. 

In any case, Miami was no longer just a party place; it had become the crypto-wallet capital of the United States. Its mayor, Francis X. Suarez, had succeeded in his mission. 

There were many advantages for Suarez to make new fortunes in Bitcoin and to show his enthusiasm for the virtual currency. In fact, the American lawyer and politician had been receiving his salaries in BTC, and despite a 40% drop in the cryptocurrency’s price in May 2022, he still had not changed his remuneration habits.

In addition, it seems that Miami managed to steal from Los Angeles the hosting of a world-renowned summit about Bitcoin, where last year we could see some of the biggest personalities in the ecosystem. 

Inevitably, however, in addition to the enthusiasts, the wealth created by cryptocurrency speculation has also benefited the more optimistic. In that, they saw Bitcoin and other tokens only as objects of strong speculation and the possibility of making super easy money quickly.

The Financial Times report: $10,000 in crypto transferred recently 

The rest of the Financial Times report recounts the most impressive customer orders. Who, at times, ordered more than fifty of the best bottles of champagne only not to open any of them. 

Andrea Vimercati, before referring to the fact that such customers have now completely disappeared, recalled: 

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

Moreover, apparently all it took was one night with 50 Cent, a famous rap singer, as a guest, at one of the most popular nightclubs called E11even, for them to come and celebrate their winnings from previous days. 

In those cases, the bills exceeded $1 million, according to some sources. All, of course, paid for in crypto, the director pointed out. The reason being, the acceptance of cryptocurrencies became more than necessary. 

E11 even started accepting them in 2021, for a total amount in the year of $6 million. However, in the last three months, only $10,000 were transferred in crypto. 

Why is the use of crypto payments greater in emerging countries?

Last year, according to a report in the second edition of Chainalysis‘ Global Crypto Adoption Index, crypto jumped 880% in Vietnam, India and Pakistan, which lead the top twenty. 

Apparently, the use of digital currencies in emerging countries is increasingly driven by the devaluation of local currencies. 

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

Moreover, Chainalysis had said that the purpose of the index was to take a snapshot of cryptocurrency adoption by ordinary people and to focus on use cases related to transactions and individual savings, rather than trading and speculation. 

The metrics are weighted to incorporate the wealth of the average person and the value of money in general within specific countries. According to what was found in the analysis, most of the top 20 countries by cryptocurrency adoption are emerging economies, including Togo, Colombia, and Afghanistan. 

Meanwhile, the United States slipped from sixth to eighth place and China, which cracked down on cryptocurrencies last spring, dropped from fourth to thirteenth place.