Miami will host what may be the largest cryptocurrency conference the world has ever seen.

Thanks to the coincidence of the calendar, COVID, and Miami’s rising reputation as a technology hub, organizers expect up to 50,000 to hit the county for Bitcoin in 2021. Headliners include Twitter CEO Jack Dorsey, legendary pro skater Tony Hawk and a cavalcade of crypto gurus. The event will be sold out from Thursday.

For Miami, the conference could also signal its emergence as a center for crypto and blockchain technology. As Axios and LinkedIn recently reported, Miami has seen its technical workforce grow faster than any other major metro over the past year (although the absolute size of that workforce remains small). Miami Mayor Francis Suarez was also at the forefront of advancing Miami as a crypto hub and announced initiatives to turn some of the city’s finances over to Bitcoin.

However, some also believe that both Crypto and Miami are experiencing concurrent cycles of hype – ones that may still pay off but are still likely to be carrying some foam.

“I think it’s real,” said Adam B. Levine, managing editor at online crypto publication CoinDesk, of Miami’s emerging profile. “On the flip side, the Miami thing isn’t just happening because of its party status, it’s simply because you’re open compared to other places that are still closed.”

Crypto is also experiencing a short-term bull run that may have already subsided. After rising to over $ 60,000 in April, the price of a single bitcoin has now dropped below $ 40,000.

“Crypto goes through this every couple of years,” Levine said. “There is evidence that this cycle might be different – but it is not that different because you have many opportunities that arise from woodworking, and while some of them are good, many are bad and turn out to be a fraud.”

“And Miami has been associated with it in the past,” he added.

Waiting for a disturbance

Cryptocurrencies like Bitcoin and their underlying technology, the blockchain, may still puzzled many. According to Daniel Stabile, a Miami-based partner with Shutts and Bowen law firm, the key is that blockchain eliminates the need for a trusted third party to conduct transactions.

For someone in Miami, this could mean using Bitcoin as a means of transferring funds to someone in Latin America at a fraction of the cost compared to a traditional provider.

But while crypto transfers have risen sharply elsewhere, they remain a tiny percentage of inter-American transfer volume. Stabile admitted that consumer-oriented or consumer-accessible use cases of the blockchain remain limited for the time being.

“I think that blockchain technology will play an increasingly important role in our lives in the future – maybe not in the foreground, but in the background,” said Stabile.

Blockchain has been discussed as a disruptive force in financial services and supply chains for years. Even the arts, where more and more digital works are authenticated with non-fungible tokens or NFTs.

But despite much discussion, there has not been a widespread switch to digital currencies, let alone blockchain technologies. That is still in the future, said Stabile.

“We’ll have to wait and see what the predominant use cases will be in five, 10, 15 years,” said Stabile, “but I’m very confident that blockchain technology will become more and more important in our everyday lives over time. ”

Even before Miami’s current tech moment, there was already a young crypto community here among those who had decided on the promise of cryptocurrency. In 2014 – an eon in Bitcoin years ago – the city served as the starting point for Ethereum, now the second largest cryptocurrency after Bitcoin.

“Miami has long been a hotspot for crypto developers and investors, so it only makes sense that this conference be here,” said Brian Breslin, director of Refresh Miami.

One of them is Jorge Cortes. In 2018, he and several other tech geeks helped found the Blockchain Center in downtown Miami to advance the causes and adoption of cryptocurrencies. The pandemic has forced its closure, but its spirit is carried on by Cortes’ newest company, Bit Basel. It’s an arts-oriented group that was formed in the midst of the mania for NFTs who are now a multi-billion dollar market for artists, creators, dealers, and collectors.

Bit Basel offers NFT users, among other things, crypto wallets. The group is also the official local partner of this week’s conference and will be creating a giant mural in Wynwood to support local artists.

Cortes emphasizes the importance of the conference.

“It’s the biggest tech event ever held in South Florida,” he said.

Right now, it’s players like Cortes who are at the heart of Miami’s crypto community. CoinDesk’s Levine says he’s not currently aware of any major crypto companies planning their headquarters out of Miami – although many now say they have a digital-first profile.

Instead, it may primarily be individuals who continue to make up Miami’s crypto scene.

“I’m not convinced we’ll see much in enterprise migration,” said Levine. “But as people move, Miami has a lot to offer that people in this space are interested in.”

Play Suarez

Originally planned for Los Angeles, the organizers of Bitcoin 2021 announced that they would move the conference to Miami in March to fear California’s pandemic restrictions – and to capitalize on the city’s increasing momentum in the tech industry.

John Riggins, director of international operations for conference organizer BTC Media, said Mayor Suarez hit upon the idea of ​​hosting straight away and was able to convince developer Moishe Mana to host it in his room in Mana Wynwood.

“The response to the move was instantly great from the US and around the world – we started selling tickets like hot cakes,” said Riggins. “Everyone was thrilled to be able to do something personally again.”

When Suarez and the conference organizers began to correspond about the idea of ​​moving the conference to Miami, Suarez soon announced his own announcement to move more of the city’s finances to crypto: in February, the city agreed to the option consider allowing residents to pay community fees using Bitcoin, and city workers to receive all or part of their salaries in it.

The Miami Herald reported in April that administrators are still investigating the concept, along with the possibility of investing part of the city’s treasury in cryptocurrency. An April 20 draft memo by the prosecutor sets out how the city can use tenders to hire a seller to process cryptocurrency transactions with the public and employees.

There are already Bitcoin ATMs in Miami, which have been set up by several providers, including Bitcoin of America.

“Mayor Suarez has started,” said Sonny Meraban, CEO of Bitcoin of America. “My schedule is filled with other mayors too, but looking back, what he’s done is awesome because every government needs to become crypto-friendly.”

Whales

Alongside various conversations, Bitcoin 2021 is likely to be simply a party celebrating the staggering fortunes that shaped the cryptocurrency. Special events for so-called crypto whales – millionaires and billionaires – are planned, including a performance by DJ Diplo and an auction that includes a meet-and-greet with skateboarder Hawk. For non-whales too, satellite events across the city feature a variety of happy hours, a nightly cruise, and pop-up art exhibits.

In one very specific case, the rise in whales is already paying off for Miami. Just as the conference announced its arrival, the city further cemented its status as a crypto hub when the Miami Herald confirmed that Bitcoin billionaire Sam Bankman-Fried and his crypto group FTX had the naming rights to the successor to the American AirlinesArena , Home, acquired the Miami Heat in a $ 135 million deal.

“I’m considering what role I can play in the world,” Bankman-Fried told CoinDesk after the announcement. “To be honest, I hope that with some of the money that is spent there, we have done a lot of good and help many residents in the district.”

Maria Derchi Russo, executive director of local tech group Refresh Miami, said she already knew some big announcements were being prepared for the conference – announcements that could turn Miami into a hub for crypto events.

“It’s exciting to see the Bitcoin 2021 conference happening right here in our back yard next week,” she said in an email. “It serves as further confirmation of the incredible energy and excitement surrounding Miami’s technology and innovation sector and the welcoming nature of our city.”

Miami’s status as a business-friendly, low-tax international city draws many to a city that may not have been on the radar due to other longstanding cultural connotations. For Stabile, the conference – whatever applies – is a sign of the growing importance of the city in the tech world.

“I think it’s a very big deal,” said Stabile. “It’s a sign that the industry recognizes Miami as the epicenter for blockchain technology.”

While the city has hosted other blockchain-related conferences in the past, he said, “The fact that (Bitcoin 2021) is here gives the industry the impression that Miami is being taken more seriously in this area.”