Pay Me In Bitcoin! A Closer Look At A Recent Trend
As NFL Players draw attention for choosing to immediately invest pay into the leading cryptocurrency, does it make sense for the rest of us to think that way, too?
Q: What’s a big enough deal to change the way NFL players get paid?
A: Bitcoin’s current rally.
Russell Okung has recently decided to invest a major part of each paycheck into BTC. Stories like Russell’s are catapulting crypto back into the limelight and, despite headwinds facing markets more generally, investors are starting to say that 2021 looks like another 2017 for cryptocurrency markets. Suddenly, the future is looking very bright as more people pile into cryptocurrencies.
Wait a second. The future is looking bright? We still have coronavirus! Trump is still president for another few days! An economic crisis is ongoing! What’s so bright about all of that?
Well, the fact of the matter is that a lot of our old problems were caused by old and inefficient ways of doing business which empowered a handful of people to do things that systematically favored their friends. Bitcoin speeds financial transactions up, removes any need for a person to be involved in anyone else’s financial dealings, and gets rid of the people who used to sit in the middle and play favorites.
What do I mean by that?
Well, allow me to explain a bit more. The entire monetary system, at the moment, revolves around debt. Debt allows banks to create money, which we all learned about in school during the most outlandish unit of our high school economics course: the money multiplier. The only problem with the money multiplier is that it charges rent to participants. It forces everyone to always be moving forward, always a little faster.
Credit is changing, though. Using cryptocurrency assets as collateral, it is now possible to borrow up to 52.5% of the value of your Bitcoin holdings without a credit check. In the coming inflationary period of next-generation cryptocurrency enabled markets, it will be possible to buy Bitcoin, wait a period, and then finance your personal life by leveraging against an appreciating asset. One…