The Crypto Crash Is A Gut Punch To Those Who Took Their Pay In Bitcoin

The dramatic slide in the cryptocurrency market has upset not just the investors. Bitcoin bulls from NFL players to mayors who insisted that they be paid in the cryptocurrency have seen their earnings halve in two months.

The Bitcoin dream run over the past three years witnessed many athletes, celebrities, and public administrators announcing that they would be taking their salaries wholly or partially in Bitcoin. That seemed like a smart choice until it wasn't.

Bitcoin price has roughly halved from its all-time high in late 2021. BTC was trading at $37,895.91 as of 6 a.m. ET Wednesday, down about 45% from the peak it hit in November.

Pro NFL Player Odell Beckham took to Twitter last November to announce that he would be taking 100% of his salary of $750,000 in BTC. A couple of months later, his earnings from that salary are half of its original worth though he would still have to pay taxes on his income at the value of $750,000!

NFL running back Saquon Barkley also announced in July 2021 that he would be taking 100% of his endorsement money which amounts to $10 million in BTC. He received his payments at the end of the year when BTC had not crashed as much as it has now. Little did he know that the bull run would not last long and the value of those payments would drop to almost half within just a few months. He is also obligated to pay taxes on $10 million and not their current worth.

Trevor Lawrence, Cade Cunnigham, Aaron Rogers, and Klay Thompson are some other players who chose to get paid in BTC last year and are now obligated to pay taxes on the original amount even though the value of those payments has almost halved.

The trend caught on with public administrators too. Miami Mayor Francis Suarez announced in November 2021 that he would be taking his pay of $97,000 in BTC. And due to the current crash, the value of that payment has roughly halved and he still has to pay taxes on $97,000.

NYC Mayor Eric Adams had also announced that he had converted his paychecks to BTC before the crash. When asked if he has any regrets about this decision, he said that he has none and he is optimistic that the market will recover.

Well, we would have to wait and watch how long it takes for the markets to recover if they do at all.