A newly wealthy group of entrepreneurs are trying to make crypto history, by building the first society run by virtual money – a “crypto utopia”. In the next coming months, each person plans on selling their home and possessions in the state of California to embark to this new society that their calling “Sol”, on the island of Puerto Rico. Each of these members has been made newly rich by the rise of cryptocurrency and blockchain technology.
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One reason the group has decided to embark on this journey stems from the rise of federal taxes on their new fortunes, some of which are reaching into the billions of dollars. Puerto Rico’s tax laws seem to be the golden key to their foreseen empire. The U.S territory holds no federal personal income taxes, favorable business taxes, and no capital gains tax – an issue many new cryptocurrency investors are running into, as tax season is in full swing. With Puerto Rico being a U.S territory the group won’t lose their U.S citizenship, making the transition far easier.
Brock Pierce, director of the Bitcoin Foundation, is the leader of this “Puertopia” movement. He co-founded the blockchain start-up Block. One, which sold $200 million in its ICO, offering the token EOS. Mr. Pierce had a recent interview with the NY Times and said, “I’m worried people are going to misinterpret our actions. That we’re just coming to Puerto Rico to dodge taxes.”
The leader wants to make it clear that the primary reason for their venture isn’t to specifically evade taxes but to show the world what a crypto future could look like.
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The group has been desperately searching for the best location for this society for over a year, with Puerto Rico on the list. When Hurricane Maria hit the island and completely destroyed most of its infrastructure back in September, they saw an opportunity to help build up the community along with their new city and jumped on it. Simultaneously, the price of cryptocurrencies began to soar.
The team is currently looking to purchase 250,000 acres to build up a new city but are adapting their plans, in order to work with the locals. They dream that “Sol” can be a place for the crypto wealthy, to use their digital currency freely and be able to create new blockchain innovation without strict laws.
What do you think? Would you join the ‘crypto utopia’ given the chance?