Miami is emerging as the crypto capital of the United States; Generation Z embraces used cars

[ad_1]

Crypto Coin

Miami, not New York, could become the center of Bitcoin activity in the United States

Cryptocurrency is designed to be decentralized, so something like the three major Wall Street exchanges, major investment banks, and top rating agencies is unlikely to develop in Florida.

But the best crypto talent is gathering in Miami and may soon develop critical mass. The reasons? Low taxes, low operating costs and a welcoming business environment.

In short, there is no longer any reason for financial companies to be in New York City when a fast, reliable internet connection means you can be anywhere.

“We took the step [to Miami] not to make a declaration, but to maximize our income potential as well as the vast pool of talent [in the city]Kevin Kang, co-founder and director of BKCoin Capital, a Miami-based digital asset hedge fund, told Newsweek. bkcoincapital.com

“New York has high taxes and is also one of the hardest states to start a crypto-related business,” Kevin Kang, co-founder and director of BKCoin Capital, an asset-based hedge fund, told Newsweek. digital based in Miami. “We made the decision not to make any kind of statement, but to maximize our revenue potential as well as Miami’s vast talent pool.”

Mayor Francis Suarez seeks to seize the next wave of innovation and redefine Miami’s image as a financial center rather than just a tourist destination and retirement haven.

“The city of Miami is committed to becoming a model city for the 21st century,” the mayor said in a white paper devoted to cryptocurrencies. “We believe this means embracing and supporting disruptive technologies that challenge the status quo and improve the way we interact with each other. Bitcoin, the decentralized financial network that enables people around the world to store and Sending value to each other without middlemen like banks or payment processors is technology that we believe will transform the world. “

Suarez points to Miami’s low electric cost thanks to the nearby Turkey Point nuclear power plant as it attempts to recruit Bitcoin miners in the region after China’s operations shut down.

The average cost per kilowatt hour is around 11 cents in Miami compared to the national average of just over 13 cents, the Bureau of Labor Statistics reported.

A bitcoin ATM is seen inside the Big Apple Tobacco Shop on February 8, 2021 in New York City. Bitcoin ATMs have been installed at various locations in the greater Miami area. Michael M. Santiago / Getty Images

BitStop installed its first Bitcoin ATM in 2015 and now has machines in the Miami area, including Miami International Airport, 46th Street Mart, and Kwik Stop Hialeah.

“To buy Bitcoin at a Bitstop, you will need a valid ID, a cell phone (and a) Bitcoin wallet,” advises the company on its website, which includes the current price of crypto in US dollars.

Miami has attracted people fleeing hyperinflation in Brazil and Argentina and outright confiscation of wealth in Venezuela. For some, it seems that Bitcoin is a good way to send money to loved ones.

In June, thousands of people attended Bitcoin 2021, billed as the biggest crypto event of all time.

On day two of the event, Miami-Dade County Commissioner Danielle Cohen Higgins told attendees, “These are financial industries and we want them to have a home, and I think Miami County -Dade is the perfect house. “

During a video conference, the President of El Salvador, Nayib Bukele, announced a partnership with Strike, a digital holding company.

The Central American nation became the first to make Bitcoin legal tender, although it encountered resistance from the World Bank and the International Monetary Fund.

Bitcoin is also a part of Miami’s professional sports teams.

FTX, a cryptocurrency exchange, paid $ 135 million to secure the naming rights for the arena the NBA calls the Miami Heat. He will replace American Airlines on the marquee. FTX was launched in 2020. Its success underscores the rapid expansion of the Bitcoin industry.

But the New York-Miami battle is not over.

CoinDesk, a news and analysis website specializing in Bitcoin and other crypto news, is based in New York City.

But CoinBase, once located in San Francisco, has moved away in line with Bitcoin’s decentralization and says it is no longer centered in one city. The company recently launched a successful IPO.

The COVID-19 pandemic is also abating, which could further alter the choices for startups and crypto locations as cities across the country reopen.

“During the COVID-19 lockdown, New York City had some of the toughest rules that weren’t the most business friendly, while Florida as a whole kept businesses open and we’ve seen its economy thrive there. ‘last year, “said Kang of BKCoin Capital. “Now that everyone is getting their shots and things are normalizing in New York City, it will be interesting to see how the dynamics change between New York City and Florida.”

By mid-morning on Friday, Bitcoin changed hands at $ 32,956.01, down 0.84% ​​in the past 24 hours but up 12.72% for the year. The 24 hour range is $ 32,719.08 to $ 33,960. The all-time high is $ 64,829.14. The current market cap is $ 617.79 billion, CoinDesk reported.

Pulse Market

Soaring house prices have pushed many young first-time buyers out of the housing market.

But the need for personal space remains. For some, a car becomes their refuge.

Generation Z embraces driving as well as do-it-yourself auto repairs. It is more difficult for the younger generations to afford their own house and they live either with their parents or with roommates. Because of this, their vehicle becomes their personal space, ”Lev Peker, CEO of CarParts.com, based in Torrance, Calif., Told Newsweek. Aleksey Kuprikov / PEXELS

“There is a misconception in the market that older generations work on cars and young people don’t even want to drive,” Lev Peker, CEO of CarParts.com, based in Torrance, Calif., Told Newsweek.

“The largest segment of our customers is between the ages of 18 and 24, indicating that Gen Z is embracing driving as well as do-it-yourself auto repairs,” he said. “It is more difficult for the younger generations to afford their own house and they live either with their parents or with roommates. Because of this, their vehicle becomes their personal space.

Many Gen Zers are still in school or just starting careers. Money is often limited, so when it comes to auto parts, they shop for price.

There are low barriers to entry in the $ 400 billion auto parts market and competition is fierce. Brick-and-mortar competitors include Advance Auto Parts, AutoZone, O’Reilly Auto Parts, Napa, CarQuest Auto Parts and Pep Boys. Many also offer online shopping.

Online auto parts stores include Parts Geek, Rock Auto, Buy Auto Parts, and 1A Auto. The online segment takes about 5% of the market.

“Compared to overall e-commerce penetration figures in other sectors, we still have a long way to go to catch up,” said Peker.

The online auto parts industry, just like online shopping, offers a wide range of products. The location: Price and practicality.

“In terms of online competitors, we’re unique in that most of our online competitors don’t have their own supply chains,” Peker said. “We source the products, perform quality checks and send them directly to customers in our own distribution centers. This allows us to reduce steps in the supply chain and pass the savings on to customers. “

The COVID-19 pandemic has turned commercial real estate upside down as large numbers of employees work from home. The pandemic has boosted food delivery companies like DoorDash, GrubHub, Uber Eats, and Seamless.

While not as dramatic as home food delivery, the coronavirus has led to a similar move towards online auto parts shopping, Peker said.

“The pandemic has accelerated this trend as many consumers have embraced DIY as well as e-commerce,” said the CEO. “Not only are there more resources available today to teach you how to repair your own vehicle, but also people have had more time to learn these skills during the pandemic. Now that the average age of a vehicle ( on the road) is 12 years old, these skills will come in handy and help consumers save time and money. “

CarParts.com’s largest markets are in the northeast and southeast. About 46% of the company’s clients are married and about 57.11% have children under the age of 18, the CEO said.

Problems in the supply chain and high demand have driven up prices in many sectors, including auto parts. But a handyman can still save up to 70% on some repairs compared to a mechanic.

Many shade tree mechanics stick to the basics: oil changes, maintaining fluid levels, and maybe changing windshield wipers or replacing mirrors and bumpers.

“What we are working on at CarParts.com is giving customers all the information they need to decide if they have the skills and tools to perform the repair, information on how to do the repair. work, “Peker said,” and if they choose not to do it themselves, transparent pricing to have the repair done for them somewhere in their area. “

The company was launched about 25 years ago and went public in 2007.

First quarter 2021 sales increased 65% from the same period a year ago to $ 144.8 million. Gross profit also rose 65% to $ 49.2 million, but the company reported a net loss of $ 2.7 million.

Carparts.com plans to nearly double its distribution center in Grand Prairie, Texas to 366,000 square feet and add 125 new full-time employees when it becomes fully operational in the first quarter of 2022.

[ad_2]