On the Best Business show on July 14th, New York Giant Saquon Barkley announced that he will be taking all future endorsement income in Bitcoin rather than US Dollars — an estimated sum of $10 million annually:
Barkley is the latest in a number of sports stars who are awakening to the opportunities that being paid in Bitcoin opens up to them. In 2020 Russell Okung of the Carolina Panthers opted to receive half his $13 million salary in Bitcoin and Tom Brady and his wife, Giselle Bunchen have associated themselves with leading cryptocurrency exchange, FTX bringing the world of crypto closer to the world of sport.
In May of this year, the New York Giants partnered up with Grayscale Investments in a deal that makes Grayscale the official crypto asset management partner for the team. Grayscale will be evident in advertising at future Giants events.
Bitcoin isn’t just evident in the NFL. The owner of the NBA’s Sacramento Kings has announced that in the future players can opt to be paid in Bitcoin too if they wish. Such changes often take time to build momentum, but the early signs are there, of Bitcoin is being embraced as a financial opportunity.
Why Bitcoin?
The reasons that Saquon Barkley mentions for opting to take his endorsements in Bitcoin rather than US Dollars seem to center largely on the digital asset acting as a hedge against inflation being witnessed in the global economy post-Covid-19. The relentless printing of money by the US Government to allow the payments of trillions of dollars in individual stimulus checks and to fund businesses through the economic downturn means that the buying-power of individual dollars has effectively been weakened.
On July 14th, Fed Chair Jerome Powell announced that inflation in the US has hit a 12-year high of 5.4% which means that prices will effectively increase as people experience a loss of purchasing power.
Bitcoin is a finite digital asset whose supply will only ever reach a maximum of 21 million coins. There is no prospect of the supply being flooded due to innate restrictions of the digital protocol. As such, those who invest in Bitcoin treat it as a hedge against inflation — a means of inflation-proofing their savings and investments.
The price of Bitcoin is notorious for volatility — it can move up and down radically — many question whether it can be a stable asset. In 2021 for example it reached an all-time high in excess of $60,000 per coin but is currently holding at around $30,000.
In the case of Saquon Barkley and others who opt to be paid in Bitcoin this could mean that with time, the value of money received could fluctuate up and down, drastically. It seems as though Barkley is likely banking on his Bitcoin appreciating in the long term, protecting and increasing his wealth.
Photo by Adrian Curiel on Unsplash
Is Bitcoin just for wealthy athletes and investors?
The effects of high profile athletes opting to receive some of their income in Bitcoin could be a way that cryptocurrency is normalized for many people. Bitcoin is accessible for everyone to buy, safely and securely and contrary to misconceptions it doesn’t require a minimum investment of more than a few dollars — you don’t need $30,000 to buy a whole Bitcoin but instead, can buy fractions of a coin (known as Satoshis after the pseudonymous creator of Bitcoin).
Indeed, with the price having dropped temporarily as a result of many factors, including China taking steps to ban Bitcoin related firms from operating there, now may be a very good time to buy Bitcoin at a lower price.
It’s not just pro athletes who can be paid in Bitcoin either — Mayor Francis Suarez of Miami is one of many political leaders across the US who are enthusiastically embracing Bitcoin. He has announced an intent for the city to invest in Bitcoin as well as to introduce the facility for citizens to pay for services using Bitcoin and for employees to be paid using it.
Following Saquon Barkley’s example, more and more professional athletes may start to opt for part payment of their income in Bitcoin or other digital assets. It seems like an opportunity for them to protect against inflation, but also to benefit from future price increases related to the asset.
But the same opportunities exist for everyone — this is still very early in the life of Bitcoin and while many feel they’ve missed the chance to invest, there’s always time. The New York Giants and athletes like Saquon Barkley are early adopters showing the way for others to follow their lead.
Will you get involved? All it takes is a few minutes and a few dollars to speculate on a little Bitcoin.
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Note: This article is for informational purposes only. It should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.
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This post was previously published on levelup.gitconnected.com.
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