The popularity of the idea of being paid in cryptocurrencies has been increasing very rapidly over the years. Some countries have even recognized these digital assets as legal tender to compensate one’s employees. But what if the person is not an employee but a professional player? How would the club or a sponsor go about paying them with cryptocurrencies? Would they even consider it as profitable?
The idea is already implemented
The best way to find out about the benefits that crypto salaries can create we need to take a look at jurisdictions where it’s accepted. One such jurisdiction is New Zealand which made it legal not too long ago, thus allowing employees to request their employers a paycheck in cryptos such as Bitcoin, Ethereum and what-not.
It is likely that Kiwi sportsmen will also start receiving their hard-earned money with digital assets, but what purpose will it serve?
Well, it will simplify the path for those unaware of the technology to investing in cryptocurrencies, thus furthering the industry even more.
Are there people who support this?
There are cases where professional sportsmen had requested to be paid in cryptocurrencies, even when the prices were going down slightly. But these cases involved people that were already major crypto fans, which creates such a question “Will those not aware of cryptos ever want them?”.
Yes, it’s very likely that the interest in cryptocurrencies will increase in the professional sports industry.
Why? Because there are thousands of sportsmen who enjoy investing their hard-earned money through good physical performance, in order to guarantee their future financial stability.
You see, there is only a small timeframe in a person’s lifetime where they are at the peak of their physical performance, and that usually ranges between 18-33 years old. After passing this peak, the performance keeps going down, thus the player loses value as well as his or her income.
Because of this, most players strive for fame in order to have at least some kind of opportunities once they retire. But not all of them manage to do so, therefore they need to invest their earned wages in a smart way.
This was provided with cryptocurrencies, as a lot of players currently involved in professional sports are Millenials, thus fully or partially aware of the technology being used. It’s not that hard to understand the benefits of the blockchain, and thousands of sportsmen are introduced to the industry via Bitcoin trading robots nearly every single day.
Why robots you ask? Because the schedule of a professional athlete is extremely busy, they simply have no time for research, analysis and various other parts that come with an effective investment strategy. According to this Bitcoin Profit review by InsideBitcoins, it’s confirmed that most users simply register with the bot, deposit some funds and leave it to do its magic.
They either rely on other people to do it for them or, if they’re a maximalist, then they go for these trading bots that automatically determine the best route for crypto.
Missed opportunity for the popularization
One of the most disappointing facts about cryptocurrencies in the world of professional sports is that it missed an amazing opportunity to become popular with thousands of players not too long ago.
A specific NFL player that was well known and respected had invested around $3 million in Bitcoin when it was trading around $790-820 back in the day, but unfortunately chose the wrong person to entrust his investment to.
Darren McFadden a retired NFL player at this point trusted his financial manager, with the investment and believed that the man would take good care of the funds and constantly check upon them.
McFadden didn’t check on his investment until Bitcoin reached its peak nearing $20,000 in December 2017. However, the moment he checked the investment, he saw that the financial manager that he entrusted the funds to had used those funds to lead a very luxurious life in the country.
Naturally, this was very disappointing for McFadden as his $3 million investment at the time could have landed him a return of $230+ million just for having the funds safely stored somewhere.
Had his investment been a success, it would have made volumes across the sports community, where McFadden had a great presence.
But unfortunately, the $3 million now simply overpowered the financial manager and clouded his judgment of the potential 10% of the profits in the future, which would amount to $23 million in total.
Will cryptos be a stable currency in sports?
More and more crypto companies are starting to notice the importance of sponsoring sports teams, especially in places like the United States and Europe. The brand recognition does wonders for a product, and what better way to do it than associate it with athletes that millions of people already love.
The most effective case that happened recently was when the Litecoin foundation sponsored a UFC event, thus increasing its brand recognition.
Multiple new partnerships are being planned as we speak, and could indeed find some success in the upcoming Tokyo 2020 Summer Olympics.