In the tech and software-focused age that we are in, it is no surprise that the percentage of the young labor force today is gravitating towards crypto salaries. We are in a much different world when compared to earlier times even as recently as a decade ago, and this is in large part to the rise of cryptocurrency. Due to the employment shortage in America, it is no surprise that companies are looking to do anything to incentivize the younger workforce. Companies wish for more workers, and with the digital industry currently in its highest boom ever, they are now more likely to offer crypto salary and payments. Are companies right about this new corner being able to attract the younger labor force by giving millennials crypto? That is yet to be seen definitively, but one cannot deny that crypto salary is here to stay.
Between August and November of 2020, crypto-related job listings skyrocketed by an incredible 600%. This was accompanied by extra incentives such as bonuses meant to attract talent. For example, the HR firm, Johnson Associates, informed that crypto positions pay 20-30% more than similar non-crypto positions. From the looks of it, people are warming up to the idea of getting a salary in bitcoin. What is interesting, however, is that crypto salary payments are becoming predominantly popular among athletes.
Recently, Los Angeles Rams’ Wide Receiver, Odell Beckham Jr., made headlines when he announced that he would be receiving his salary in Bitcoin. He is the biggest name in a growing list of athletes who are delving into the digital industry of crypto adoption. He detailed on Twitter that he would be paid his base salary of $750,000 in bitcoin. It was part of a partnership he struck with Cash App, a subset of Square Inc.
That being said, it would be remiss not to mention that not all is right and bright when it comes to crypto adoption. A good example would be what was detailed in an anonymous letter sent to The Moneyist detailing how an employee demanded a refund on the salary he paid his employee. The individual was hired for a contract and paid his salary in bitcoin. Unfortunately for his hirer, the coin value shot up on trading sites like redot.com by 700% shortly after he was paid. After this, the CEO of the company sent an email to the contractor employee, requesting that he refund the crypto payment he had just received, proposing to pay in dollars instead.
HIGHER NUMBERS OF MILLENNIALS CHOOSE TO GET THEIR PAYMENTS IN CRYPTO- CRYPTO SALARY
While the older generation is more lukewarm regarding receiving salary in bitcoin, the younger generation has recognized cryptocurrency as the future. Millennials’ crypto views are changing at a rapid rate, with the majority of the digitally-inclined demographic shifting toward owning digital investments. They sift through crypto news and search for the best trading platform to utilize their paid assets.
NBA teams such as the Sacramento Kings and Dallas Mavericks have warmed up to bitcoin. Vivek Ranadive, owner of the Kings, stated that anyone in his organization that wanted to be paid in bitcoin will be – whether it be part or full payment. Cuban informed that his organization has begun accepting game tickets and merchandise payments in bitcoin. The Oakland Athletics also receives payments in this format if the buyer wishes to use bitcoin.
Other than Odell Beckham Jr., several athletes are receiving their payment in bitcoin like Russell Okung. The former offensive tackle for the Carolina Panthers got paid $13 million, half of which was in bitcoin. Sean Culkin, ex-tight end for the Kansas City Chiefs, became the first NFL player to convert his entire salary to bitcoin when he converted his $920,000 payday to bitcoin. Trevor Lawrence, the quarterback of the Jacksonville Jaguars, will receive his bonuses in bitcoin, ethereum, and solana. Matt Barkley, a former quarterback for the San Francisco 49ers and Cincinnati Bengals, tried to get both teams to pay him in bitcoin while he was with each one but they both declined. It is worth noting that all of the athletes that have decided to get paid in cryptocurrency are in the NFL, but despite almost all athletes outside the NFL not using crypto as a means for payment, many athletes across all sports acknowledge the importance of cryptos as a part of the future. Even some politicians are getting paid in bitcoin these days, which means even some of the lawmakers and executives notice the value of these coins.
So, why are so many young athletes going this route? Surely, if they are willing to stake their hard-earned living on cryptocurrencies, there must be a reason. Maybe understanding why athletes do this will help open the eyes of others who might be curious about this mode of payment as well as understand the benefits to be gained in this digital industry.
For one, a lot of athletes do not get paid pensions, so they need to rack up as much money as possible while they are in their prime and playing. Several athletes are already thinking of life after their sport. When life inevitably takes a corner regarding what you can do on the pitch or the court. Not being as efficient as a person used to also means he will not be paid at the same level – or worse, get cut. In getting paid in crypto, they are already thinking of the future and life after sports. Cryptos tend to appreciate, and this is invaluable for someone whose time to accrue money is limited. Most sports are usually directed tied with age. So there is a specific window within which an individual can get his paydays from salaries, sponsorships, bonuses, and endorsements. But the steep decline from that to them being free agents is sharper than most people think – even them. That is why there is no shortage of former sports stars who are now bankrupt. When you add to that the fact that fiat currencies have a propensity to inflate as time goes, the reasoning becomes clearer.
Another reason why they would venture into being paid a salary in bitcoin is these athletes – Okung, for example – truly believe that crypto is the future. Experts that had formerly ridiculed cryptocurrencies have been made to eat their words. Crypto has been doing enormously well the past few years, with Bitcoin and Ethereum hitting all-time peaks. Bitcoin has become more and more accepted as a viable means of payment from big franchises like Starbucks and Nordstrom and Dogecoin seems to be the next big coin that franchises might agree to receive as payment, as said by Dallas Mavericks owner, Mark Cuban.
Lastly, crypto is decentralized, which means you have privacy and autonomy over your assets. The anonymity that comes with web3.0, the blockchain, and crypto trade is something that never existed in web2.0. In an age where privacy has become a big issue, athletes are relieved to have assets that they know are accessible to them and only them.
