As the world advances in becoming more technological day by day, certain things are just about going with the times. A recent trend is that some professional athletes are taking their salary, or a portion of it, in cryptocurrency. More specifically, these athletes are taking their contracts in Bitcoin. A Bitcoin, or BTC, is a decentralized digital currency and, as of Dec. 1, one Bitcoin has a value of $57,130.
There are seven current professional athletes taking their contracts in BTC, with five playing in the NFL and one playing in the NBA. Russell Okung, Sean Culkin, Aaron Rodgers, Trevor Lawrence, Saquon Barkley and Odell Beckham Jr are taking portions of their salaries and putting it into Bitcoin. The first overall pick in the 2021 NBA Draft, Cade Cunningham, is one of the only NBA players who has announced his decision.
Okung is taking half of his $13 million contract in Bitcoin. The Carolina Panthers are buying $6.5 million worth of Bitcoin and giving it to Okung. Barkley will only accept endorsement deals if it is paid in Bitcoin. Culkin, a reserve tight end, converted his entire $920,000 salary into Bitcoin. Lawrence, the No. 1 overall pick in the 2021 NFL Draft, is placing his entire signing bonus into a cryptocurrency investment firm. He placed a portion of his $22.6 million bonus into Bitcoin, but the amount was not specified. Both Cunningham and Rodgers are placing undisclosed amounts of their contracts into Bitcoin.
The most recent player to announce his decision is Los Angeles Rams wide receiver Odell Beckham Jr. After being released by the Cleveland Browns, Beckham signed with the Rams during the season. The 29-year-old isn’t just placing some of his salary, he’s placing all of it into Bitcoin. The star receiver is set to make anywhere from $1.25 million to $4.25 million. Since one Bitcoin is worth $57,130, that means Beckham has possession of 21.86 Bitcoins.
The reason why Bitcoin is such an intriguing way to take a salary is that its value fluctuates. It isn’t like the US dollar where the value is relatively stagnant. For instance, on Nov. 8, one Bitcoin was worth $67,582. In just 23 days, the value of Bitcoin has dropped by nearly $10,500.
For example, let’s look at what Beckham’s contract were to look like if he bought the Bitcoin at $67,582 on Nov.8. Beckham would be in possession of 18.5 Bitcoins, which is equal to $1.05 million on Dec.1. In just a month, in theory, Beckham has already lost nearly $200,000.
It can go either way, though. What if Beckham bought the BTC on Dec. 1 at $57,130? That would mean Beckham would be in possession of 21.88 Bitcoins. If the value jumps up like it was on Nov. 8 at $67,582, Beckham’s portfolio would have already increased by almost $230,000.
Is the risk worth the reward? It could but it all depends on when the holder decides to sell. The value of Bitcoin will always fluctuate, and it’s up to the holder to know when it is hitting a point where tremendous profit is being made. To many, Bitcoin is the currency of the future, and the trend of placing large amounts of money in Bitcoin is just getting started.
