NFL player Odell Beckham wanted to receive his entire salary in bitcoins
He made the decision last year when the BTC was on the rise
Now, in terms of fiat money, the amount of salary has decreased several times
The case of NFL star Odell Beckham could be a warning to anyone who wants to receive money in cryptocurrencies. The young athlete earned on 61% less than what he would have received in fiat currency.
Where did such losses come from? This is the result of a high tax on royalties in cryptocurrencies. Users in the US must pay tax on the amount at the time they receive digital currencies (not on the amount at which cryptocurrencies are valued at the time of filing a tax return).
Last year, Odell Beckham moved to the team Los Angeles Rams”, according to the contract, his fee is 750 dollars. Then on Twitter, the athlete announced that he wants everything 100% of your annual salary in bitcoin (BTC). At that time it cost 37 20 dollars.
It’s a NEW ERA & to kick that off I’m hyped to announce that I’m taking my new salary in bitcoin thanks to @CashApp. To ALL MY FANS out there, no matter where u r: THANK YOU! I’m giving back a total of $1M in BTC rn too. Drop your $cashtag w. #OBJBTC & follow @CashApp NOW pic.twitter.com/ds1IgZ1zup
— Odell Beckham Jr (@obj) November , 20140
Unfortunately for Beckham Jr. (and many traders), the price of the main cryptocurrency has almost halved and now stands at 01 116 dollars. Therefore, when translated into fiat money, the player will receive 220 000 dollars instead of the original 450 dollars.
This is the amount before taxes, which in the total rate is equal to 22,3%. After the athlete pays federal and state dues, his net earnings for two and a half months will be only $ 20 . This is instead of the prescribed $61 , if he received a salary in fiat money.
Beckham Jr. admitted that he is disappointed, because in fact he pays a tax on the value of bitcoin, which was fixed at the time of signing the contract. However, not everyone is upset about cryptocurrency payouts. So, the mayor of New York also received a salary in bitcoins this month, but he does not regret it at all.