New York is becoming the “crypto capital”, ahead of places like Silicon Valley and Hong Kong. This city is known for being the nerve center of many companies, Hollywood productions and all kinds of events. Thus, the introduction of cryptocurrencies in NY will provide them with a first level showcase to make them known to a global audience. Blockchain enthusiasts are amazed at the developments with this initiative.
New York and cryptocurrencies
For years, the governments of the different federal states have opted to attract the blockchain and cryptocurrency industry. From the beginning it was seen as an opportunity to take advantage of the potential of a technology industry with growing assets. The United States already has Silicon Valley, the great capital of big tech, and New York has traditionally been the epicenter of world finance thanks to Wall Street. It is not surprising that mayors, governors and legislators have had a positive attitude towards cryptocurrencies by lowering taxes and maintaining more lax regulations.
Why does New York seem to be getting ahead of its domestic and international competitors? For a start, Giants of the crypto world such as the Gemini exchange, the NFTs marketplace OpenSea and blockchain analysts such as Chainalysis have their headquarters there.. Being in New York certainly puts you on the map. It is a city with great activity and that does not rest. There are all kinds of events and occasions to publicize products or services that are offered. The technology sector, in particular, is one of the most prolific in this type of city, which is at the forefront of software development. For all these factors, it is an ideal scenario for cryptocurrencies to be used.
Big players interested in crypto and blockchain
Major New York private equity investors and managers also seem to have turned their attention to cryptocurrencies of late. Wall Street private banks are beginning to get involved in these markets and offer a full spectrum of financial services related to cryptocurrencies in their portfolios.. Such is the fever for cryptocurrencies in Manhattan that even the recently elected mayor of New York, Eric Adams, dared to describe New York as “the center of the cryptocurrency industry”.
The crypto market has consolidated in the US economy at the same time as other powers such as China have vetoed this sector. The Asian giant’s ban caused the exodus of many Hong Kong-based companies, which found refuge and a much more favorable jurisdiction in the United States. Some cities like Miami and Austin offer incentives to companies in the sector in the form of lower taxes. Wyoming, for its part, has a cutting-edge specific regulation that makes it easier for cryptocurrency companies and miners to operate in its territory, having generated numerous jobs.. An example of this is the company Kraken, one of the exchanges that offers services in several countries.
Exchanges and other companies developing for crypto
One of the keys is that the Big Apple offers something exclusive that at the moment no other city can compare to, and that is access. Access to finance, technology and above all, something more intangible, to the contacts and culture that surrounds the crypto world. So says Ali Yahya, General Partner of the venture capital firm Andreessen Horowitz: “there is a growing community of crypto and Web 3 people in New York, particularly in Brooklyn. It’s in the air, it’s part of the zeitgeist (“spirit of the moment”) of the place”.
It is true that Silicon Valley holds the record – both in the US and in the world – for gross investment. Investors have pumped nearly $14 billion into the crypto industry around the San Francisco Bay Area since the start of 2016.much more than in any other area of the country. However, this is not all, since it could explain why some giants of the crypto world such as Robinhood and Coinbase have seen their business increase after great achievements that have increased their capital over the years.
The exchange sector has not stopped growing to the same extent as the market capitalization of cryptocurrencies as there is more and more money in hold of these assets and more use cases as well as more users. The United States is one of the benchmarks in this market, after the SEC witch hunt of some projects, including the XRP case. Now the legislation seems to be giving entry in a more friendly way to projects that want to develop services in the blockchain and the reason seems to be the capital income that they are attracting from large investors who see promising opportunities in this still incipient industry. If we did not take this into account, the New York market would come out ahead, since venture capitals have invested nearly $4.74 billion in a variety of cryptocurrency and blockchain-related companies.
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