Pro-Athletes Dive Into Crypto, not Dollars
A number of economists are looking at the federal government’s spending spree and wondering what it might mean for interest rates and inflation.
The inflation question is particularly important because inflation steadily erodes the value of dollars. Today’s dollar doesn’t buy the same amount of goods or services as yesterday? That’s inflation.
People have long sought hedges against inflation – often as not seeking refuge in precious metals like gold or silver. But there are more and different options for hedges today, including a move in some quarters to invest in cryptocurrencies as a hedge against inflation, government meddling, and economic displacement.
And here’s a sign of just how big, and mainstream, the crypto trend has become:
[Top NFL draft pick] Trevor Lawrence is going to get paid this week — in crypto.
Lawrence’s portfolio includes mainstream cryptocurrencies such as Bitcoin and Ethereum. He’s also invested in Solana, a lesser-known blockchain.
According to Spotrac, the signing bonus for this year’s No. 1 pick is an estimated $22,630,055.
Interesting. Here’s another example from the NFL:
…[Kansas City Chiefs] tight end Sean Culkin will be the first NFL player to convert all of his salary to Bitcoin.
Culkin, who is vying to be a backup behind starter Travis Kelce, would be paid his $920,000 salary by the Chiefs in U.S. dollars but in turn will convert it to Bitcoin.
Like any investment, there two players could lose everything in a short time if the market in crypto turns sour. And there’s absolutely no guarantee their investment will gain value – that’s up to the market, too.
Bottom line, though, is crypto is getting mainstream, fast. And it has important implications for the U.S. dollar and the U.S. Treasury.