I think it happened. Russell Okung might possibly have been the last person on anyone's list to do it, but I think it's safe to say he just broke the internet.
Russell Okung's on the last year of his 4 year, $53M contract. Nothing too crazy about that, but, it's been announced that the offensive lineman for the lackluster Carolina Panthers will have half of his $13M salary paid out in Bitcoin (BTC).
Scrolling through the replies to Rapoport's tweet alone, you'll see plenty of outrageous tweets, leading me to to assume the average Twitter user throwing their opinions into the void that is Ian Rapoport's mentions, have the faintest idea of what Bitcoin is, and why it's valuable.
For the uninformed in Rapoport's mentions, Bitcoin's a decentralized digital currency not administered by a central bank, or single authority. If you're still out in the woods, you can think of Bitcoin as a better alternative to gold (coined by some of the greatest minds in the 21st century) because its distinct properties. Okung's move to have half of his salary paid out in BTC is especially interesting because a large portion of the United States still think BTC's a farce.
Back in 2017, the price of Bitcoin shot up approximately 25x going from $700 to $19,500 per coin. This is basically where the average American learned about Bitcoin as during this time, news coverage surrounding the asset skyrocketed for a short period as retail investors shoveled their money into the exploding asset and quite possibly got burned because of it. Not to get too technical, but this is where we enter the realm that may confuse someone that has no idea what the asset is, or why it has value. Within its code, Bitcoin has a maximum supply of 21 Million. Similar to gold, Bitcoin is scarce, but unlike Bitcoin, additional gold continues to get mined every year, which dilutes the total supply. In 2016, BTC underwent a famous term called the 'Bitcoin halvening'. This is basically where the amount of BTC released into the public each year is cut in half, thus making BTC a scarcer resource as a lesser percentage of the overall 21 Million BTC is released into the public. For context, approximately every 4 years Bitcoin undergoes a 'halvening'. At this point in time, around 18.5 Million BTC is in the current circulation, and an additional 900 BTC will join everyday until it undergoes another split where 900 will then become 450. When you do the math, you'll realize that the supply of Bitcoin will become drastically more scarce over time, and the remaining 2.5 Million Bitcoin will flow in over the next 140+ years. If you've ever bothered to listen during any economics course ever, you'll realize that as Bitcoin adoption increases (demand), so will price because of the capped supply. Essentially, over the long-term, Bitcoin is on a trajectory to the moon.
So, what does this all have to do with Russell Okung? Well, essentially nothing. He'll get a new contract next year after entering Free Agency, and will likely continue to get paid in Bitcoin. While that is true, he should be commended for this. As you can tell from Ian Rapoport's mentions, Bitcoin is still largely regarded as a scam by the average person. In the example of Russell Okung, it's still entirely possible to get publicly tarred & feathered online by a bunch of people that have an IQ similar to your shoe size. In my opinion, I think this is great exposure for the Digital Asset markets. Bitcoin is continuing to get exposure, and I'd imagine other athletes, mainly Spencer Dinwiddie, will come forward and be more vocal about their ventures without fearing the backlash from people that don't see the problems of fiat currency.
As seen in Russell Okung's recent Tweets, he's just about done with fiat, and the only thing stopping him from going 100% in on Bitcoin is his wife's not fully onboard. Normally, anyone with a brain would advise you to never put all your eggs in one basket, but Okung's been around the league for some years, and I'd imagine he's in a good enough position to safely take on that risk. As seen below, you can see the 5 year chart showing the decline in value of USD to Bitcoin. As you can see, the dollar continues to lose value to Bitcoin.
The crazier part, when you look at the all-time chart, you'll see an even worse drop when comparing the buying power of the Dollar. Let me say, past performance isn't indicative of future results, but the numbers don't look good for the Dollar. Visually, this isn't the best example as the graph's scale is isn't all that great, but at one point in time a single dollar could've bought 20 Bitcoin. Fast forward, and that dollar now buys the tiniest of fractions.
The ball's just getting started. 2021's going to be an insane year, and Bitcoin's probably going to become a household name. Anyone outside the crypto-realm probably doesn't know, but Bitcoin's been on a rally as of late. The deflationary asset smashed its previous all-time high of ~$19,500 in early December, and is currently sitting pretty at ~$27,500 per coin. Institutional money has entered the chat. Michael Saylor's MicroStrategy is buying up more than the daily supply of Bitcoin. You can add PayPal and Grayscale to that list as well. MassMutual, the insurance giant that's been around for hundred of years, is also in. Meanwhile, Jerome Powell's got the money printer's working overtime, and the influx of fiat might've temporarily saved us from a recession, but at what cost?