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Wednesday, November 30, 2022

Crypto crash hurts athletes like OBJ, who converted NFL pay to Bitcoin

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Fortune favors the bold.

Because that sounds much better than, “Please keep buying cryptocurrency in order to artificially prop up the price of something that has no inherent value.”

The ongoing cryptocurrency craze continues to fascinate the get-rich-quick-by-doing-absolutely-nothing crowd who don’t seem to realize that, as more buy it, the price goes up and, as more sell it, the price goes down. Recently, people have been selling it — causing the price to crash.

Via Sports Business Daily, which cited CNBC’s TechCheck, Rams receiver Odell Beckham Jr. recently saw his salary from his latest team cut in half by the recent price plummet for Bitcoin.

Darren Rovell recently crunched the numbers. Although Beckham (in an obvious effort to promote the currency so that more people will buy it and thus drive up the price) claimed that he is taking his pay in Bitcoin, the reality is that he’s simply buying Bitcoin with his after-tax net earnings. Taking into account taxes and the dip in Bitcoin price, Rovell says that OBJ has earned a mere $35,400 in salary from the Rams, despite a much-publicized $750,000 payday.

We know that the crypto aficionados won’t like to hear this. Oh well. This isn’t stock in a company or any other type of equity. It’s trading dollars for a technological form of money in the hopes that enough people will buy it to drive up the price, and then getting out with a profit.

Those who got in early, and those who get paid to hype the currencies (like Matt Damon and Tom Brady), will make money. They’ll make that money at the expense of those who buy high and sell low.

Like OBJ. Unless he opts to “average down” and keep pumping more and more of his cash into something that, again, has no inherent value.

And why not do that, Odell? After all, fortune favors the bold. And there’s a sucker born every minute.

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