Russell Okung’s Bitcoin Salary Can Encourage More Pro Athletes to Invest

Russell Okung # 76 from the Carolina Panthers

Grant Halverson | Getty Images

It is often referred to as the new form of gold, and now the aggressive lineman of the Carolina Panthers, Russell O’Keefe, is betting heavily on bitcoin.

After nearly two years of fighting, Okang finally granted his wish and his salary would be diverted to buy bitcoin with the help of mobile payment firm Strike. The National Football League and its players’ union approved an agreement that would allow the Panthers to pay Okung a portion of Okung’s 13 13 million salary to Strike so that it could be converted to Bitcoin.

“Money is more than money,” Okang said in a statement; That is power. “The way money is managed from creation to spread is part of that power. Paying in Bitcoin is the first step in choosing our corrupt, manipulated economy.”

To be clear, the Panthers do not pay Okang directly to Bitcoin. Instead, the team will turn about 6. 6.5 million from Ok Kang’s salary into a strike, which will then charge fees for the currency’s longtime advocate, Okung, and process the bitcoin transaction.

CNBC to confirm the transaction fees associated with Okung’s agreement. The strike did not respond to a request for comment.

Bitcoin is in business for over 27 27,000, so Okong will get about 240 coins at that value. Since his days playing with the Los Angeles Chargers in 2019, O’Keefe has sought to replace his salary with bitcoin.

“It’s long-term hope that the price of Bitcoin will continue to rise,” Chris Matta, co-founder of Crescent Crypto Asset Management, told CNBC on Tuesday. “And the move is a demonstration of their support and long-term boom for Bitcoin, which is growing further from here.”

It is like gold, but it is not gold

Bitcoin was introduced in 2008 and created a fortune for some last year when a single bitcoin went from under $ 1000 to about 20,000. This started a booming market for new crypto-based funds.

Bitcoin has since gained popularity from the disrupted economies of Covid-19 as investors seek safe care during an epidemic. For decades, gold has been a general safety net for investors, but Matta said Bitcoin is now seen as an option.

Referring to the comments of billionaire hedge fund manager Paul Tudor Jones to invest more in Bitcoin, Matta said, “It has become hugely attractive as a solid asset, especially during Covid-19 and all consumer concerns about the global economy and geopolitical environment.”

“The new digital gold, as it is called,” Matta added. “It brings Bitcoin to the forefront in the investment portfolio this year, and as a result there’s a ton of interest around it.”

Matta said Okang’s bitcoin is probably. Will be placed in offline fly digital wallets known as “cold storage”. The move gives Okung more protection from potential hackers seeking to steal currency from his account. Bitcoin accounts are not as secure as bank accounts, which are FDIC-insured.

“Keeping it offline is a much safer way, especially for someone like Rush who speaks clearly about Bitcoin,” Matta said. “Bitcoin is the target of any cyber-hacking that raises its voice in the space.”

Los Angeles Chargers’ Russell O’Keefe # 76 lands on the field after the November 4, 2018 game against the Seattle Seahawks at Centurilink Field in Seattle, Washington.

Otto Grill Jr. | Getty Images

Dangerous move?

But like any investment, Okung, 32, is taking significant risks.

Drew Hawkins, CEO of economic consulting firm Educore, said the frequent fraudulent activity around Bitcoin is a matter of concern, adding: “Many people need to understand what it is and how it works and what it doesn’t.

“This is a risk in terms of what they’re going to get into their hands with the guaranteed dollars from the agreement as opposed to taking chances on what Bitcoin will be worth,” Hawkins said.

Despite reaching new highs, volatility still plagues Bitcoin due to its steeply improving history, which reduced the trading price for a coin in 2017 to 3,000,000.

On Monday, Newton adviser Mark Newton told CNBC’s “Trading Nation” that his estimates show Bitcoin’s current cycle is “exiting early January.” He said there could be opportunities to buy bitcoin at lower prices by then.

“Bitcoin has been an extremely volatile asset,” Matta said. “But in the long run, it’s probably the best performing asset in the last 10 years. But if you don’t know what you’re doing and don’t invest in this thing for the long term, there will be a lot of volatility.”

Hawkins added: “People have done a good job and made a lot of money out of it, but you also had similar situations that no one expected or ended up in some significant losses.”

Are more athletes going to bitcoin?

Britlin is also coordinating strikes with players from the Net and New York Yankees to imitate Okung, according to the Bitcoin news site Coindesk. The players involved in the site are not named.

Matta said Okung’s move would provide more credibility for Bitcoin, and could encourage more athletes to invest in digital currencies. Potential investors can also buy Bitcoin through other mobile payment apps, including PayPal, Cash app and Square.

“Covid-19 hyper-charged the development of Bitcoin,” Matta said. “I think this would have happened with Bitcoin; it would have taken a little longer to get to this point.”

– The report was contributed by Hugh Sun of CNBC.