Odell Beckham Jr., a Los Angeles Rams wide receiver, was talking about last November when he announced that he would convert his 2021 salary to Bitcoin.
Beckham’s Problem: Its Bitcoin BTCUSD,
Prices are plummeting.
Cryptocurrencies, including Bitcoin and Ethereum ETHUSD,
I extended the slides in progress on Monday. Ether has fallen 8% in the last 24 hours and Bitcoin prices have fallen below $35,000, including a 4% drop in the last 24 hours.
This is bad news for crypto investors and Beckham, who claimed to convert $750,000 into Bitcoin in a deal with Block Inc. S.Q.
Payment company Cash App.
Action network According to CoinDesk, the deal took place on November 12, a week after the veteran receiver was released by Cleveland Browns, the day Bitcoin was priced at $64,158. Prices have fallen 46.55% since then.
Based on Monday’s Bitcoin price, assuming Beckham converted a $750,000 lump sum to Bitcoin when the transaction took place in November, the salary was worth about $401,500 and was downgraded. Interestingly, he still has to pay taxes on the income provided to him at a value of $750,000.
In addition to federal income tax, Beckham is required to pay state income tax in California, where Rams plays and is one of the highest state tax rates in the country. The state income tax brackets indicate that his income cap is subject to a tax rate of 12.3%, which starts at $625,370. (His overall compensation, including contracts and incentives, was reported to be worth as much as $4.25 million.)
It is difficult to determine the exact amount of Beckham’s loss, as it is unclear whether Beckham transferred the $750,000 total to Bitcoin at once or spread it across multiple conversions. According to action network Darren Rovell and former ESPN and CNBC, if a deposit is made on November 12, the investment is worth about $35,000 after deducting federal and state taxes.
But I can be sure that Beckham should have been paid in US dollars.
Beckham’s representative did not confirm the terms of Beckham’s Bitcoin investment in MarketWatch.
reference: Are you interested in cryptography?”: Kim Kardashian and Floyd Mayweather Jr. have been sued for cryptocurrency fraud.
Beckham has joined the roster of NFL players who have accepted cryptocurrency payments or converted some of their salaries such as Sake One Berkeley, Trevor Lawrence, and Russell Okung.
Cryptocurrency price declines have seen three dramatic late-night comebacks in the United States after a panic-like sale on Wall Street on Monday, a plunge into the stock market, and the Dow plunging more than 1,000 points in the mid-afternoon. This is because we have changed all major stock benchmarks to DJIA.