Odell Beckham Jr. might have lost his money in Bitcoin.
According to a new report from Total Sports, the Rams player may currently be feeling the burn from the current Bitcoin crash.
“On November 12, Odell Beckham Jr. signed a deal with the Rams worth $750,000. He announced he would take that in Bitcoin,” reports the outlet. “At the time, Bitcoin was worth $64,293. Today, it is worth $35,400. Today, that deal is worth $412,953. Odell will be taxed on $750,000. Federal & CA state tax will be 50.3% That means Odell, as of now, has netted $35,703 from the Rams contract this year.”
Back in August of 2021, AfroTech reported that Odell Beckham Jr. entered the cryptocurrency world after purchasing a CryptoPunk 3365. Then, in November 2021, we also reported that he would be taking his NFL salary in Bitcoin. Odell made the deal in partnership with CashApp.
And he’s far from the only professional athlete to take a salary in Bitcoin. As AfroTech also previously reported, Russell Okung made NFL history when he became the first player to take part of his salary in Bitcoin. AfroTech’s report revealed that Okung’s deal worked out nicely for him, as his initial salary of $13 million was then estimated to be worth more than $21 million, and this number factors in both his cash and BTC investments.
So, why is it different for Odell Beckham Jr.?
If Odell Beckham Jr. Lost Money In Bitcoin, This Is Why
To be perfectly clear, no one knows whether Odell Beckham Jr. lost any of his Rams salary in Bitcoin. The speculation is purely based on market fluctuations.
While Bitcoin, on the surface, is seen as a high-value investment — mostly thanks to its high return on investment — it’s also a highly volatile, and risky, one. According to Investopedia, Bitcoin’s value fluctuates with the supply and demand for the cryptocurrency. Long-term investors — who often have more money than short-term ones — hold on to their Bitcoin investments as it goes through crests and waves. And because of that, there are fewer coins for other investors to buy, which drives the value up.
But when these long-term investors sell off their Bitcoin in what is seen as a “high” — as seems to be the case in the current market, according to CNBC — the supply of the coins suddenly outweighs the demand, which crashes the value. And because there are no federal regulatory agencies that currently oversee the buying and selling of Bitcoin, the bearish-vs.-bullish ride can be seen as extreme, especially to amateur investors.
For this reason, it’s important to consider the pros and the cons whenever investing in anything, but most especially in such a volatile asset as Bitcoin. Talk to a trusted investment professional (not the random “Forex” dude you found on Instagram) before you spend your money.
