After this week’s plunge in crypto prices, a number of US celebrities may regret getting paid in digital currencies.
NFL star Aaron Rodgers, for example, has chosen to get paid partly in Bitcoin. Another football player, Odell Beckham, said he would receive his entire salary that way. And in politics, New York City’s new mayor, Eric Adams, converted his first paycheck into Bitcoin and Ethereum.
They may wish they hadn’t. This week, a sudden crash followed by several days of steady losses pushed Bitcoin to its lowest price in six months, down more than 50 per cent from its all-time high in November. Other currencies, including Ethereum, also plummeted in value, and have still not fully recovered.
The result is a big bite out of some famous paychecks. According to an analysis by the New York Post, Mayor Adams likely lost over $1,000 on his first payday due to the conversion. And the pain isn’t over – in November, he promised to take his first three paychecks in crypto.
“New York is the center of the world, and we want it to be the center of cryptocurrency and other financial innovations,” Mr Adams said last week as he devalued his paycheck. “Being on the forefront of such innovation will help us create jobs, improve our economy, and continue to be a magnet for talent from all over the globe.”
As for Rodgers, the quarterback’s exact losses are unknown because he hasn’t revealed how much of his pay he takes in Bitcoin. But with a paycheck as large as his, the hit could be significant – his base salary is $1.1 million, not including bonuses.
Rodgers enthusiastically announced his Bitcoin decision on 1 November, when the currency’s price was over $60,000. On Thursday, it was down to about $36,200.
“I believe in Bitcoin & the future is bright,” the quarterback tweeted two months ago. “That’s why I’m teaming up with Cash App to take a portion of my salary in bitcoin today.”
For Beckham, the situation could be more dire. The wide receiver pledged in November – when Bitcoin was still high – to take his whole salary in the cryptocurrency. If Beckham accepts his $750,000 salary in one lump sum, Deadspin calculated, the Bitcoin conversion would knock it down to about $400,000.
“It’s the start of a new era and I’m looking forward to the future,” Beckham announced in a tweet on 22 November. “That’s why I’m taking my new salary in Bitcoin, thanks to Cash App.”
Crypto prices are extremely volatile, and it’s possible – even likely – that Bitcoin and other currencies will spike up again. But for the moment, at least, the future for those who tied their paychecks to crypto looks a little less bright.
