It’s called a new form of gold, and now carolina Panthers offensive lineman Russell Okung is making a big bet on Bitcoin.
After a battle of approximately two years, Okung nevertheless learned his wish and his salary will be diverted to buying bitcoins with the help of cell payment company Strike. You can switch to bitcoin.
“Money is more than cash; is power,” Okung said in a statement. “The way cash is controlled from creation to distribution is a component of that power. Receiving a payment in bitcoin is the first step in getting out of the corruption and manipulation of the economy in which we all live.
The National Football League and its players’ union were unansterated until Tuesday’s announcement, however, the parties did not attempt to officially cancel or signal Okung’s agreement, which is executed internally through the Panthers.
During the discussion about the league’s position on the deal wednesday, an NFL spokesman, Brian McCarthy, told CNBC by email: “There’s nothing to sign. Clubs pay players in U. S. dollars. What players or cash brokers do belongs to them. “
To be clear, the Panthers don’t pay Okung directly in bitcoins, but the team will divert about $6. 5 million from Okung’s salary to Strike, which will then probably charge fees and process Bitcoin transactions for Okung, a former tax advocate.
Strike responded to a request from CNBC to verify transaction prices related to the Okung agreement.
Bitcoin is at over $27,000, so Okung will get about 240 coins for that value. Since his days with the Los Angeles Chargers in 2019, Okung has been pushing for his salary to be replaced by bitcoin.
“He expects the long-term value of bitcoin to increase,” Chris Matta, general manager of bitcoin sales and trading and 3iQ corporate crypto actives, told CNBC on Tuesday. “And this resolution is a demonstration of its long history. timeframe and optimism for bitcoin, which is developing even further from here. “
Bitcoin was introduced in 2008 and has generated fortunes for some when a single bitcoin went from less than $1,000 to nearly $20,000 in 2017, prompting a bull market in new crypto funds.
Since then, Bitcoin has gained popularity with Covid-19’s disruptive economies as investors seek to cover the pandemic. For decades, gold was the same old defense network for investors, but Matta said Bitcoin was now considered an alternative.
“It has become incredibly exciting as a hard asset, especially Covid-19 and all customer considerations about the global economy and geopolitical environment,” Matta said, referring to billionaire hedge fund manager Paul Tudor Jones’ comments to invest more in bitcoin.
“The new virtual gold, as it’s called,” Matta added. ” This has brought bitcoin to the forefront of investment portfolios this year, so there’s a lot of interest around it. “
Matta said Okung’s bitcoin will most likely be placed in offline virtual wallets called “cold storage. “This resolution provides Okung with more coverage against potential hackers looking to borrow money from their account. Bitcoin accounts are not like bank accounts, which are secured through the FDIC.
“Keeping it offline is a much safer way, especially for Russ, who talks brazenly about Bitcoin,” Matta said. “Anyone who speaks in the Bitcoin area is a target of hacking. “
But like any investment, Okung, 32, is risking.
Drew Hawkins, CEO of Edyoucore, a monetary advisory firm, said the common fraudulent activity surrounding bitcoin added: “A lot of other people want to perceive what it is and how it works and what it does. ‘it’s not.
“It’s a threat in terms of what they’re going to put in their hands with dollars guaranteed from a contract rather than taking threats as to what will or possibly won’t be this price of bitcoin,” Hawkins said.
Although it reaches new highs, volatility still haunts Bitcoin due to its history of corrections, which in 2017 the trading value fell to $3,000 for a single currency.
On Monday, Newton’s Mark Newton of Newton Advisors told CNBC’s Trading Nation that his estimates show that the existing Bitcoin cycle “ends in early January. “He said there may be opportunities to start buying cryptocurrencies at reduced costs until then.
“Bitcoin has been an incredibly volatile asset,” Matta said. “But in the long run, it is probably the most productive asset in the last 10 years. But if you don’t know what you’re doing and don’t invest in this thing in the long run, there will be a lot of volatility in the middle. “
Hawkins added: “People did well and made a lot of money from it, but it also had an equivalent number of conditions that ended up not matching what someone predicted or that resulted in really significant losses. “
Strike is also coordinating more arrangements by imitating Okung with players from the Brooklyn Nets and New York Yankees, according to the news of Bitcoin CoinDesk, which did not call the players involved.
Matta said Okung’s resolution would give bitcoin more credibility, which could inspire more athletes to invest in virtual currencies. Potential investors can also purchase bitcoins through other cellular payment apps, adding PayPal, Cash App and Square.
“Covid-19 has accelerated bitcoin expansion,” Matta said. “I think it would have happened to Bitcoin anyway; it’s taken a few more years to get to this point. “
– Hugh Son of CNBC contributed to this report.
Correction: A single bitcoin has gone from less than $1,000 to nearly $20,000 in 2017, a previous edition distorted the year. This story has been updated to reflect THE NFL’s comments on the topic.
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