Half of NFL Player’s Salary to be Paid in Bitcoin
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you pump the asset you're getting paid in. Free publicity. Or he's just not that tech savvy.
It would have been nice if he negotiated the salary in bitcoin amount last year...
Anyway, there's a lot of administrative savings by being paid directly in bitcoin. Sure, it's easy to say get paid in USD and convert himself and for $20K or $50K, no big deal, but $6.5M worth of bitcoins, that's no easy process, wire instructions from the bank, waiting for Gemini or Coinbase or Kraken to clear the funds, etc.
Also depends if he's doing self-custody (not recommended) or if it's bitcoin custodial account at Gemini, Coinbase, Bakkt (ICE), or Fidelity, whichever options are available. It's simply easier to get paid in bitcoins, period, if that's what his intent was for $6.5M
One final note on self custody, you'd have to do proper due diligence, make sure your disaster recovery are setup (offsite backups and mutlisig possibly for estate planning in case of sudden death or brain damage) and tested before transferring small amount and increasing, 6.5M worth of bitcoins, should be broken down to $10K, $100K, then $500K max transfers, imho
[update: I'd probably do 6 independent bitcoin wallets, but also 6 different disaster-recovery, but in this way, if 1 or 2 or 3 wallets get compromised - could be multisig-related, gotta pick different holders not all the same people, entities, you still have enough for the moon! Each wallet will be worth $10M+ in the future
]
Anyway, there's a lot of administrative savings by being paid directly in bitcoin. Sure, it's easy to say get paid in USD and convert himself and for $20K or $50K, no big deal, but $6.5M worth of bitcoins, that's no easy process, wire instructions from the bank, waiting for Gemini or Coinbase or Kraken to clear the funds, etc.
Also depends if he's doing self-custody (not recommended) or if it's bitcoin custodial account at Gemini, Coinbase, Bakkt (ICE), or Fidelity, whichever options are available. It's simply easier to get paid in bitcoins, period, if that's what his intent was for $6.5M
One final note on self custody, you'd have to do proper due diligence, make sure your disaster recovery are setup (offsite backups and mutlisig possibly for estate planning in case of sudden death or brain damage) and tested before transferring small amount and increasing, 6.5M worth of bitcoins, should be broken down to $10K, $100K, then $500K max transfers, imho
[update: I'd probably do 6 independent bitcoin wallets, but also 6 different disaster-recovery, but in this way, if 1 or 2 or 3 wallets get compromised - could be multisig-related, gotta pick different holders not all the same people, entities, you still have enough for the moon! Each wallet will be worth $10M+ in the future
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As a someone who works in the tech sector, for a Silicon Valley-headquartered company, I have to say his request is no different than receiving a portion of my in RSUs or stock options.
I don't see grounds for attacking him.
Is there some risk? Sure. Is there some flaws in his reasoning? Yes
1. The time for such requests was 10 years ago, when Bitcoin was rarely traded. Now, since everyone, and their momma, wants in the Bitcoin frenzy (crypto goldrush), I don't see much upside in Bitcoin. Yes, I know the quantity of Bitcoins is set, and, because of such, its value rivals that of precious metals. I still don't see much upside.
2. I know this is far fetched, but what if Bitcoin loses value because of competitors?
3. I don't like the idea of someone stealing my money without a goddamn trace. Further, what recourse does he have if his private key is compromised and his Bitcoins are stolen? Probably none.
I am sure there are other risks and flaws that I haven't thought of.
I don't see grounds for attacking him.
Is there some risk? Sure. Is there some flaws in his reasoning? Yes
1. The time for such requests was 10 years ago, when Bitcoin was rarely traded. Now, since everyone, and their momma, wants in the Bitcoin frenzy (crypto goldrush), I don't see much upside in Bitcoin. Yes, I know the quantity of Bitcoins is set, and, because of such, its value rivals that of precious metals. I still don't see much upside.
2. I know this is far fetched, but what if Bitcoin loses value because of competitors?
3. I don't like the idea of someone stealing my money without a goddamn trace. Further, what recourse does he have if his private key is compromised and his Bitcoins are stolen? Probably none.
I am sure there are other risks and flaws that I haven't thought of.
I'd look to preserve my money when its in the millions as opposed to trying to put it all in such a risky investment. Football players have an avg lifespan of playing of 3 years. If he gets hurt and bitcoin tanks he will regret not listening to his financial advisor if he even has one. I don't know the details of his contract , what's guaranteed or not so Just saying!!! But then again he may look back 10 years from now and look like a genius in the world we live in ... ;o)
Another risk I had not considered...
Tangent: I don't understand the Bitcoin craze. I have zero interest in trading or investing in it. Further, the fact that it has no underlying asset to determine its price makes it even less attractive.
The only regrets I have about Bitcoin is that I didn't mine for coins, over a decade ago, using nothing more than the compute power of an Intel Pentium processor. Damn!
Yeah ... I even remember thinking about it way back then. Didn't want to slow my computer down; and didn't think I'd do much darknet online shopping to justify bitcoins anyway.
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Unless you believed in the bitcoin ideologies, mining that early would have guaranteed that you'd have sold them when bitcoin hit parity ($1) or at $10, or you'd have to be very lucky to have not sold when it hit $100 and stalled there for months and even went down, first quarter of 2013.
Now, if you started mining in Jan 2014, and the cost of one S1 at ~$1200 and that amount was substantial for you and your family that it meant going into deeper credit card debts, and that you had to spend many hours customizing all your mining configs, and had to deal with heat and noise, in the whole living room of the tiny apartment you live in, which was ok for that cold weather but in a few months would be unbearable and you purchased a 2nd S1 miner and go into even deeper debts, and had to buy all kinds of accessories, Walmart wall fans blasting maximum to dissipate the heat to the outside via the windows, and custom fan rigs from ebay that meant disassembling the miners and risk damaging some stuff in the process, and all the sleepless nights when a miner would crash and needed reboots, lost hours meant delayed ROI time frame as bitcoin network hash and mining difficulty were increasing, you would be a longer term hodler and you would value them bitcoins and would not sell them so cheaply. Just sayin'...
Wow. So let's call the 1.9 BTC spent as $50,000 in today's dollars, but 1K in 2014 dollars.
Was the item purchased in 2015 worth 50K? Or did it cost 1K, in 2014 dollars?
If so, I'd be pretty pissed off that I bought a 1K item for 1K in bitcoin, only realizing that 6 years later it costs only .05 BTC to get the same damned thing. Talk about depreciation of your purchasing power, retroactive!
Oh, don't feel bad, bro
That miner was earning bitcoins, about 0.08 btc per day. Roi was about 21 to 23 days (but with electricity costs, about 30 days). The thing you had to make sure was to account for difficulty increasing every 10 days!That miner earned way, way more than 1.9 btc, because I was able to mine other coins when it was earning little btc (little did I know that those 0.01 btc/day would be worth so much today, lol. I earned whole bitcoins mining sha256 coins early, like DIEM, Chikun, all kinds of gimmick coins that could be traded for bitcoins.
[EDIT: bitcoin was less than $200 each in 2016 and I wish I bought as much bitcoins as I could.
That miner was much cheaper 2 years later in $ term, I wish I maxed out all the credit cards in 2016 but was already distraught I lost all the paper profits from the bitcoin bull market cycle of 2013/2014 without benefiting 1 penny]
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