Over the past 5 years, a lot has happened in the world of cryptocurrency. In recent times we’re looking at what appears to be an increase in mainstream interest. Despite numerous attempts by governing authorities all over the world, cryptocurrency is still going on strong.
With allegations of fraud, widespread theft and hacking attempts to collapsing crypto exchanges, the road to mainstream stardom has been anything but smooth for punters and investors alike. However, all of this hasn’t stopped anyone from trying to strike gold in the crypto market.
Jumping on this bandwagon as well are professional athletes and celebrities who are looking to cash in on the crypto craze. These attempts range from investing in their own actual crypto exchanges and releasing their own tokens to endorsing crypto products on social media.
So, what is it exactly about cryptos that have athletes from the NFL, NBA, MMA and other disciplines going gaga? Join us as we take a look at some of the reasons why athletes have turned to investing in Bitcoin.
1. Many pro-athletes view cryptocurrency as an investment
Pro-athletes derive their incomes from sponsorships, endorsements and also competing. Unfortunately, their revenues are dependent largely upon their age as well as their ability to perform. While athletes such as Connor McGregor and Floyd Mayweather have used their celebrity status to generate other sources of income, others may not be so lucky.
This is why an increasing number of pro-athletes have turned their attention towards cryptocurrencies. For example, cryptocurrencies such as Bitcoin and Ethereum are relatively stable. Also, they have the potential to appreciate given their widespread acceptance.
Hence because of this, athletes turn to cryptocurrency as a means of making their own money work for them. As evidenced by how several pro-athletes, some of which running to be NFL MVP of 2019, have requested to be paid in Bitcoins, this situation may hold true.
2. Cryptocurrencies are the future
In the wake of the bear market in 2018, analysts were prepared to drop Bitcoin like a hot potato. Many pundits have dismissed the cryptocurrency as being part of a fading trend. They highlighted the lack of any physical backing for it. As a result, the future would appear to be bleak for the Bitcoin and its assortment of other cryptocurrencies.
However, in recent times it would appear that the pundits were wrong. Instead of crashing, Bitcoin valuations were at a 2-year high. In stark contrast to the 4th quarter of 2019, Bitcoin was last being traded at just below $13,000 per unit.
With numerous mainstream retailers in the United States like Starbucks and Nordstrom now accepting payments in Bitcoin, it should come as no surprise that many have finally accepted that Bitcoin is here to stay.
3. Crypto is an alternative to fiat currency
The largely unregulated nature of the crypto market has naturally caused significant amounts of consternation for many government bodies. By providing users with a degree of pseudo-anonymity Bitcoin and other currencies can make it impossible to trace transactions.
Oftentimes, athletes have huge salaries and earn a fortune from advertisements as well as endorsements. This coupled with the relatively young age of athletes means that their financial planning skills may not exactly be the best. Consequently, many of them run into problems with the tax man down the line.
Again, as Bitcoin and other cryptocurrencies offer relative anonymity, they can be used to illegally evade taxes. Please note however that under no circumstances are we implying that professional athletes are interested in evading taxes. We’re merely suggesting that cryptocurrency allows an individual to potentially avoid paying his/her taxes.
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