NFL stars and politicians’ bitcoin bet turns sour

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It’s a bet that has so far turned sour.

Many stars, especially in the National Football League and high-profile politicians like the mayors of Miami and New York, have bet on getting paid in bitcoin and ether, the two main cryptocurrencies in market value.

But the rout in the crypto market, which has lost more than $1.2 trillion since its highs in early November, has significantly affected their payrolls.

Bitcoin, which reached $69,044.77 on November 10, has lost over 44% of its value and is currently trading around $38,530.44. The same goes for Ether, the native currency of the Ethereum blockchain, which fell from $4,878.26 on November 10 to $2,685.68 at the time of writing.

Eric Adams, the new mayor of New York, who wants to make the financial capital a major cryptocurrency hub in the face of competition from Miami and other cities, has announced with fanfare that his first three payrolls will be in crypto. .

On January 20, Adams converted his first check into bitcoin and ether.

But on the same day, bitcoin lost 10% of its value.

To accelerate the adoption of crypto-currencies by the general public and attract technology firms, Francis Suarez, the mayor of Miami, announced in November that his remuneration would be “100% in bitcoin”. It looks like it wasn’t a good bet.

Temporary losses?

“It may certainly dampen the general enthusiasm in the meantime, but there will no doubt be another batch of loyal long-term holders after seeing how the crypto has recovered again from the winter of 2018-2019,” Bill said. ‘Swo’ Lee, councillor. at FriesDao, a decentralized autonomous organization. “Historically, we have never seen bitcoin fall below the all-time high of the previous bull cycle after each halving.”

It is for some athletes that the collapse in bitcoin’s value is doing the most damage, as many sports stars have either converted their juicy endorsement deals to crypto or are only paid in crypto. This is the case of Odell Beckham Jr., the wide receiver of the Los Angeles Rams.

After Beckham was released by the Cleveland Browns in November and signed by the Rams, the star said he was partnering with Block’s (SQ) – Get Square, Inc. Class A Report Financial Cash App, which offers buy and sell bitcoins. Beckham then said he would accept his one-year salary of $4.25 million in bitcoins. In November, bitcoin was at an all-time high.

The losses are even greater for Trevor Lawrence, the Jacksonville Jaguars quarterback and future face of the NFL, who placed his $24 million signing bonus in a cryptocurrency account with Blockfolio, a cryptocurrency firm. cryptography.

As for New York Giants star Saquon Barkley, he decided to invest his eight figures in bitcoin marketing and sponsorships to build “generational wealth.”

“I’m going to put my marketing money into bitcoin,” Barkley said during an appearance on the Best Business Show with influencer Anthony Pompliano on July 14. “I think it’s just the smart thing to do and the right thing to do to start taking my bitcoin investment money.”

The first to take the plunge was Carolina Panthers player Russell Okung, who took to Twitter in May 2019 asking to be paid in bitcoin.

His wish was eventually granted by the Carolina Panthers who paid him half of his $13 million salary in bitcoins in December 2020.

Cryptocurrencies are, analysts warn, a highly volatile asset.

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