Last November, the mayor of New York, Eric Adams, announced his plans to receive his first three salaries in bitcoins, and in mid-January he detailed that this money would be automatically converted into ethers and bitcoins through the Coinbase platform.
Although it was an attempt to boost the crypto industry in the city, it is likely that this decision has generated losses, according to a recent analysis by the New York Post.
According to the media, Adams, who earns about $5,900 fortnightly – without taxes, but before other deductions – would have invested about $17,864. In this context, if the mayor divided his three payments equally between the two currencies ethereum and bitcoin and purchased them at the price of the day – on January 21 and February 4 and 18 – his losses would be around 600 dollars.
That would translate into a 3% decrease in its foreign exchange portfolio until the morning of that Saturday, the newspaper stresses. It should be remembered that once Adams made the first purchase from him (on January 21), the prices of bitcoin and ethereum plummeted. Between that day and the following Monday, they lost 15% and 24% of their value, respectively. However, his behavior has been erratic in recent months. And while the mayor managed to offset the initial losses to some extent with his next two investments, it hasn't been enough.
Bitcoin and ethereum have suffered since the beginning of this year a fall of 18% and 31% respectively. In this regard, the New York Post considers that Mayor Adams would have been better off investing in the stock market, taking into account that the S&P 500 index —based on the market capitalization of 500 large companies listed on the US stock exchange— It is only down 12% since the beginning of January and, unlike bitcoin, it pays dividends.
The Democrat won the election for Mayor of New York in November 2021 and soon announced his plans to turn the city into the world center of cryptocurrency trading. On November 10, NYCCoin, a New York exclusive cryptocurrency, was launched, which can be used for smart contracts and decentralized applications, while the city authorities will receive 30% of the income from mining and buy/sell cryptocurrency.
Loading
Comments