Bitcoin has become a popular investment tool, especially for athletes who are looking to do something meaningful with their money and looking toward the future. Unfortunately as with many investments, things might not go as you originally planned.
Odell Beckham Jr. is the latest player to convert his salary to Bitcoin, and as of now, things aren’t going well for the Los Angeles Rams wide receiver.
It's a NEW ERA & to kick that off I'm hyped to announce that I'm taking my new salary in bitcoin thanks to @CashApp. To ALL MY FANS out there, no matter where u r: THANK YOU! I’m giving back a total of $1M in BTC rn too. Drop your $cashtag w. #OBJBTC & follow @CashApp NOW pic.twitter.com/ds1IgZ1zup
— Odell Beckham Jr (@obj) November 22, 2021
On Nov. 12, 2021, Beckham signed a deal with the Rams that was worth $750,000, and a week later he announced he would take it in Bitcoin. When he signed the deal, Bitcoin was worth $64,293.
Fast-forward to today, and it’s only worth $35,400. Beckham will also be taxed on the $750,000, and federal and state taxes will be 50.3 percent.
According to Actionnetwork.com analyst Darren Rovell, this means that Beckham has only reaped $35,703 from his contract this year. Things could end up turning out better for Beckham, as he receives a bonus the further the Rams go in the playoffs.
The amount of people applauding players changing their salary into Bitcoin as if they were heroes has been comical.
Rams WR Odell Beckham Jr., at least in the moment, provides a cautionary tale. pic.twitter.com/uW0QDdJrYy
— Darren Rovell (@darrenrovell) January 23, 2022
There are many other players who have decided to use Bitcoin, and one of the first players to convert their contract was NFL free agent Russell Okung. Last year, he took 50% of his $13 million salary in bitcoin. Aaron Rodgers has also partnered with Cash App to be paid in Bitcoin, as he only invested a portion of his pay into the company.
When investing in anything, it’s about the waiting game. Three years from now, Beckham could look back on this deal and it could be the best investment he ever made. On the other side, things could continue to falter.
