Comptroller Lander clutches his pearls! No joke… Are we really still holding on to these archaic financial paradigms as the world passes us by with innovation? Mayor Adams' proposal for "Bitbonds" – municipal bonds with a tiny Bitcoin allocation – isn’t fiscal recklessness, it's a calculated bet on the future. And to be honest, NYC better get to betting if it wants to be in the race.

Lower Borrowing Costs: A Real Possibility?

Think about it. New York City has to keep selling new bonds just to pay for critical infrastructure, education and other social programs. We're talking billions of dollars. Just a small decrease in interest rates can mean billions in savings to the taxpayer. How massive? For example, imagine that NYC sells a $1 billion bond. At least one well-timed 0.1% reduction in the interest rate saved the city $1 million a year. Over the nearly four-year life of the bond, that amounts to tens of millions in savings. That’s cash that could be spent hiring more teachers, repairing our crumbling subway system, or keeping local businesses afloat.

Picture this — Bitbonds attracting the interest of a large new class of investors. Smart and forward-looking people and institutions are anxious to help you diversify your portfolio and get in on the crypto action with Bitbonds’ tiny Bitcoin fraction. By creating this increased demand, this new demand would drive down interest rates providing NYC tremendous savings. It's basic economics, yet Lander acts like we're proposing to gamble the city's entire budget on Dogecoin.

One Percent Bitcoin: Not the End of the World

Let's be clear: Mayor Adams isn't suggesting we convert the city's treasury into Bitcoin. The proposal involves a one percent allocation. One percent! That’s far less than the average American spends on their “fun spending” allowance. It’s a relatively small allocation, made within a well-diversified portfolio, and a strategy that institutional investors have widely adopted to improve returns.

Think of it like this: You wouldn't put all your eggs in one basket, right? You diversify your portfolio by investing in a mix of asset classes. This is everything from stocks, bonds and real estate to, if they’re lucky, a small investment in the next great successful technology startup. And that one percent Bitcoin allocation—that’s the “promising tech startup” of the bond world.

  • Traditional Bonds: Stable, but low returns.
  • Bitbonds (1% Bitcoin): Potential for higher returns, still relatively stable.

Lander’s fear-mongering blather on Bitcoin’s volatility is, quite frankly, an insult to the intelligence of New Yorkers. We understand risk management. We understand that increasing a small share of a volatile asset can be a wise addition. This serves to improve a much larger, more stable portfolio. And if that 1% goes to zero? It's a rounding error in the grand scheme of the city's finances. But the potential upside? That's where the magic happens.

NYC: Future Leader or Fiscal Dinosaur?

The fundamental flaw in this entire discussion isn’t this concern over Bitcoin’s volatility, but New York City’s desire to be at the forefront of innovation. Will we remain at the forefront of the digital economy by drawing in tech talent and investment? Or will we overtake the fiscal dinosaur, which is content to cling to archaic models as our competitors race ahead?

Issuing Bitbonds sends a clear message: NYC is open for business, we're willing to experiment with new technologies, and we're not afraid to challenge the status quo. It garners attention, creates a ton of buzz, and cements NYC’s reputation as a smart city. We implore Comptroller Lander not to put more stock in protecting his future political prospects and playing it safe, than protecting NYC’s long-term future. What we need are leaders who will take effective risks, not just the safe bet of maintaining the status quo.

Check out this short video to learn how bitbonds could save NYC money.[Embedded Video Here – Visual explanation of Bitbond mechanics and potential benefits]

Brian Estes, your analogy of today’s private bonds to pre-1971 bonds that were repayable in gold is exactly right. It's about having a 'hard money' component. It’s not just about diversifying the city’s capital funding strategy, but about laying the groundwork for attracting a new generation of investors.

Let's face it, the world is changing. Cryptocurrency and blockchain technology are not a fad. We need to be proactive, not reactive. We need to be bold, not timid. Mayor Adams' Bitbond proposal may be a gamble, but it's a gamble worth taking. And the potential rewards are huge. Increased borrowing cost, a less diversified investor base, reputational risk as laggard in the digital economy — these are no question outweighed by risk. It’s about time for NYC to lead the way into the future, rather than be dragged into it kicking and screaming.