Puerto Rico has had a long history with colonizers. Starting in 1493, Cristopher Colombus landed in the city of San Juan and established himself there along with his men. During his stay on the island, he enslaved the Taínos and supplanted their entire political, social and religious systems with the Spanish culture. The Taínos were obligated to convert to Christianity by Columbus, who also exploited them and sent them to Spain to be purchased by other wealthy patrons. The island was under Spanish colonial control for nearly 400 years, and if that wasn’t enough, Puerto Rico was invaded again in 1898, this time by U.S forces who, after 3 months, defeated the Spanish and claimed ownership of the Island. Now, almost 123 years later, Puerto Rico is being exploited by colonizers once again; but this time, by American millionaires who’re just looking to evade taxes.
Crypto millionaires, Bitcoin, and Cryptocurrency
The cryptocurrency was launched in 2009 by an unidentified person, or group, who goes by the pseudonym, Satoshi Nakamoto. This digital payment system was invented after the 2008 global financial crisis as a solution for people to control their own money without having to rely on banks or governments. Since then, Bitcoin has grown in popularity among celebrities, as it appears to be a decent way for billionaires to safeguard their fortune. Celebrities like Floyd Mayweather, Kanye West, Elon Musk and Brock Pierce have all invested in Bitcoin and encouraged their fans to do so. However, as safe and beneficial as crypto may appear, its negative impact may be more harmful to a city than we realize.
Cryptocurrency in Puerto Rico
After Hurricane Maria nearly devastated Puerto Rico and destroyed the island’s infrastructure in 2017, the price of cryptocurrencies skyrocketed and the property was sold for retail. These millionaires saw this as an opportunity to build a crypto utopia, a new city where all money is virtual and all contracts are open. It was then that American millionaires discovered another way to protect their wealth: tax evasion .
These American investors can escape paying taxes thanks to the Act 22 legislation; all they have to do is spend 183 days on the island to preserve their money while maintaining their American citizenship.
One might believe that bringing rich Americans to the island is beneficial as it enables social and economic growth by offering easier access to financial and capital services. What are the chances? Perhaps there will be more work opportunities, and the island will grow more profitable and advanced. The issue with the wealthy’s invasion is that while property values decrease for them, they rise for Puerto Ricans. This is a huge disadvantage for Puerto Rico’s real estate. Properties in Dorado are selling for more than $20 million, rental prices are rising, and all of this is happening while Puerto Ricans are still earning minimum wages and cannot afford the increased prices.
Investors are now racing to Puerto Rico to purchase hotels and historic structures in which to establish their airports and cities. Meanwhile, Puerto Ricans continue to face the consequences of colonization and domination.
Crypto and Nature
Another downside of crypto-currency and bitcoin is that it has a detrimental environmental impact. To validate and add transactions to the blockchain, Bitcoin depends on thousands of miners using energy-intensive devices 24 hours a day, seven days a week. This demands an excessive amount of energy. According to a study conducted by the UK financial site, each bitcoin transaction uses 1,173-kilowatt-hours of electricity. The authors of the report stated that this is the equivalent for the volume of energy consumed by the typical American household for six weeks.
This energy demand should be worrisome because Puerto Rico has endured a lot of energy instability since Hurricane María. On top of that, our principal power infrastructure is in a deplorable state, and people are still suffering the consequences of the hurricane’s devastation.
The invasion of the wealthy should be voiced and cause indignation. Puerto Rico has been hit by a slew of catastrophes in the last five years, leaving the island as well as its people defenseless, penniless and damaged.