Why do athletes continue to receive their salary in BTC despite the price drop?

Sports business analyst Darren Rovell, who has more than 2 million followers on Twitter, echoed the concern that the drop in the price of bitcoin has generated around the salaries of athletes who are paid in cryptocurrency.

As CriptoNoticias has reported, During the last year, different professional athletes announced that they began to collect their salary in bitcoin. The objective of the initiative that continues to rise is to protect the value of savings against the devaluation of the dollar and resist rising inflation.

However, the current context has generated the opposite effect, since the cryptocurrency has dropped its price from USD 67,800 to USD 35,400, from its all-time high last November until today. This has caused American football player Odell Beckham to lose almost USD 340,000, for example, he pointed analyst Darren Rovell.

Seeing how they lost money, the analyst stated: “It has been comical how many people applaud players who change their salary to bitcoin as if they were heroes.” Precisely Odell Beckham signed a contract for USD 750,000 in bitcoin on November 12, which means that it is now worth USD 412,953, he mentioned.

Although in reality this is not entirely true. The analyst’s assumption is based on the loss that the player would have had if he had been given the full amount of money in bitcoin that day. However, the salary of players in the National Football League (NFL) usually delivered weekly, not completely at the beginning.

If Odell Beckham is paid split, his salary will most likely be set in USD and he will be sent bit by bit in bitcoin at the exchange rate of the day. That would mean that the loss could be less, considering that there would be days that he would have charged with a lower change than the one said by the analyst.

However, the details of his salary contract are unknown, so the exact figure of his loss of money is pure speculation. Despite this, this does not seem to be a problem for athletes and other analysts at the moment, since they consider that bitcoin’s price drop is temporary and will be valued more in the long run.

Bitcoin’s performance looks long term

Darren Rovell express: “It is just as important to talk about crypto when it is at its lowest point as when it is at its highest point. At its peak, it’s exciting because it’s creating wealth. At its lowest point, it shows how colossal the damage can be.”

To this, Jake Butt, the former NFL football player, replied: “The lesson is to understand what you are investing in from a utility point of view. If you invest in meme coins to try to make $10 million overnight, you have a very good chance of losing it. But if you study the use/utility case and believe in the long-term view, the short-term USD doesn’t matter.”

Jake Butt’s words represent the bullish thinking that different analysts share about bitcoin in the long term. Considering the increase that the cryptocurrency has had since its birth 13 years ago, a price drop does not mean that it will stop growing. It has always been something temporary and then it has been valued more.

Although the past is no guarantee that the uptrend will be repeated in the future, Various public figures are adamant about keeping their salaries in bitcoin to hodle. This last term means storing the funds in the cryptocurrency for a long time with the goal that its value increases.

This is not only seen in the field of sports, it also happens in the area of ​​politics. Last week, for example, the new mayor of New York Eric Adams announced that he received his first salary in cryptocurrency.