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Note: I would like this blog to retain a sense of pseudonymity. While a clever person could probably figure out my identity, believe me: it is not that interesting. I am not Elon Musk. I dislike Dogecoin. I redacted personal information for these reasons .
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To the Honorable Chris Sununu, Governor of the great state of New Hampshire,
My name is [JohnGaltsBrother], and I would first like to belatedly congratulate you on your election victory last year. Residing in [Galt’sGultch], N.H., my wife and I both voted for you and hope to see your elected position continue into the future.
Before jumping into the heart of the matter, I think a short introduction is necessary for context, so you know I am not just presenting an opinion without some background. I am an Emerging Operational Technology Engineer with [a large company]. I am in the middle of my Ph.D. in Business, focusing on Strategic Management. I hold a B.S. from [some university] in Economics & Finance, an MBA, and postgrad diplomas and certificates in different subjects like innovation and blockchain technology. I also teach undergraduate courses at [some university] in Business.
In recent years, New Hampshire has continued to separate itself from the rest of the New England states as being friendlier to individuals and businesses to live and work. What I am proposing here not only will help to bring more opportunities to New Hampshire but will help to separate it from much of the rest of the country as an early adopter of the current trend.
As I am sure you are aware, there are many within the country who are afraid of massive amounts of inflation in prices due to the already inflated monetary supply (measured in M0, M1, and M2 by the Federal Reserve), which increased between 25-32% in the year 2020 alone. Further, continued federal spending is likely to continue, so many people have turned to hedges against this coming tide.
Traditionally, these hedges would include gold and silver. However, due to their relative scarcity within a short time horizon, it is necessary to accumulate more of these resources to maintain the same scarcity ratio as opposed to other finite scarce assets. Recently, blockchain technology has been adapted to include cryptocurrencies, the most famous of which was kicked off in 2009 and is known as Bitcoin.
As you may be aware from the news, Bitcoin is reaching all-time highs and popularity amongst not only individuals but also institutional investors. Notably, Microstrategy, a business intelligence firm, purchased over $2 billion to put in their treasury as a long-term hold. As did Tesla, with a purchase of over $1 billion. Grayscale Investments hold multi-billions of dollars in digital assets and offer clients exposure through trusts sold in shares on the New York Stock Exchange. At the time of this writing, there are eight Bitcoin ETF (exchange-traded fund) which have been applied for, and the new SEC chairmen used to teach blockchain and cryptography at MIT. In addition, Coinbase, one of the leading crypto exchanges, went public last week with a $100 billion evaluation.
In order to be a boon to the great state of New Hampshire, I am proposing a holiday on Business Enterprise Tax and Business Profits Tax for a period of time for businesses and individuals who move to and conduct business out of New Hampshire revolving around digital assets.
Surprisingly, Colorado, Ohio, Texas, Wyoming, and even California are more welcoming with their governmental policies than New Hampshire for blockchain and cryptocurrencies. Wyoming, perhaps more than all of those mentioned, having the most favorable policies created.
By New Hampshire coming forward with pro-digital asset policies for companies and corporations, this can give the state a much-needed boost in high-paying technology and financial jobs. Perhaps one of the few Covid-19 pandemic’s silver linings is it proved that remote workspaces are not necessary for most technological and financial industries. Welcoming financial technology (FinTech) companies into N.H. would not be that much of a stretch, as traditional hubs such as Boston and New York City are not far from our borders. Also, the decreased cost of doing business in New Hampshire is an immediate draw on top of the friendly welcome with some of the incentives mentioned above.
While drawing firms into the state is great, it also highly incentives residents within N.H. to be entrepreneurial within this space. It can create a digital asset safety net that other states would lack if the risk of hyperinflation continues to rise. Right now, transacting in digital assets for a business may have negative tax issues depending on how they are handled. However, there is much more than to this space than just buying and selling crypto assets, including decentralized finance (DeFi) which can be used by residents and businesses already in N.H. to spurn growth and innovation and keep them local as opposed to pushing them out.
While you are the Governor and not a proposer of legislation, I hope that you can work with your team in Concord to think about this high-level proposal mentioned in this letter.
I would be happy to make myself available at your convenience if you or someone on your team would like more detail or information on this idea.
Stay Free,
[JohnGaltsBrother]
