Bitcoin Pay: Crypto Market Falls Lead to Questions

Cryptocurrency prices are in the doldrums, but that’s not stopping some high-profile athletes from using bitcoin pay for receiving their pay. While digital assets like bitcoin have gained a reputation for trading in an uncorrelated way to the S&P 500 index, they’ve been unable to escape the risk-off mood among stock market investors.

The bitcoin price has been more than cut in half since November levels, falling from a peak of close to $69,000 to about $33,700 today. The S&P 500, meanwhile, has fallen over 10% from its recent peak, placing the index in correction territory.

Ethereum, the second-biggest cryptocurrency, has seen its price tumble by 30% in the last few days alone to $2,230 after trading above $4,000 in December.

Crypto Pay

Despite the volatility, crypto enthusiasts still choose to see the glass as half full. Not only that, but professional athletes who are commanding up to seven-digital salaries are increasingly opting to be paid in bitcoin instead of cold hard cash.

NFL Players Are Early Bitcoin Movers

Mixed martial arts is not the only arena where athletes receive their pay in crypto. The NFL’s Odell Beckham Jr., a wide receiver for the Los Angeles Rams, revealed in November that he would take his $750,000 guaranteed pay ( worth up to $4.25 million in total pay) from the team in BTC for the current season.

The Action Network’s Darren Rovell was quick to point out that when Beckham signed his contract, the bitcoin price was trading at over $64,000 per BTC. According to Rovell’s calculations, that means Beckham’s contract is now worth less than $413,000 even before being taxed for the whole shebang, which he pegs at roughly 50% for federal and California state taxes, bringing the NFL player’s take-home pay to about $35,700.

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