What is Miami Coin and why was it created? - Crypto in Plain English - Episode 47 - by cryptohunt.it

What is Miami Coin and why was it created?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, let’s talk about Miami Coin: What it is and why the city created it.

The city of Miami has long been trying to position itself as a major hub for crypto innovation. It hosted a huge blockchain conference and creating Miami Coin has surely helped to keep Miami in the news. But what is it?

The coin, which has the ticker MIA, is a token that was created and sold by the city of Miami. Its value was simply set by supply and demand, with people hoping to be part of an experiment that would make them money.

What’s particularly interesting about Miami coin are two aspects though: It is one of the first official government uses of a crypto currency, and it creates a stream of income for the city as well as the owners of the coin.

You can generate money through Miami Coin by mining or staking it – meaning you help run computers to validate transactions, for which you’ll get additional Miami Coins. But only 70% of those rewards go to you, and this is where it gets interesting. 30% goes to the city, which has already made them over 20 million real dollars. The city is now deciding what to use the money for.

And while this all sounds like a great new idea, critics point out serious flaws: First, the value of Miami Coin is based entirely on the speculation of buyers and sellers. Aside from mining it, there isn’t a whole lot of things you can actually do with it for now - like paying for things at the supermarket for example.

The other problem is that its value isn’t stable when compared to the US Dollar. Things might crash tomorrow and Miami Coin owners may lose a majority of their investment.

That’s Miami Coin! And next time, we’ll talk about the differences between investing in crypto versus stocks.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.