The January slump in the crypto markets has seen several investors lose quite a fair share of their investments. However, the recent mini uptick in Bitcoin’s price has caused New York city’s mayor to record a profit of nearly 13%.
Mayor Eric Adams had promised to receive his first three paychecks in Bitcoin when he became mayor in November last year. This choice was in line with his desire to see NYC become the epicenter of innovation and adoption of the crypto industry.
NYC Mayor Fulfills Crypto Promise
In late January, mayor Adams announced that he would make good on his earlier promise and receive his first pay in cryptocurrency. However, New York City cannot pay its employees directly in cryptocurrency due to U.S. Department of Labour regulations.
Instead, the city officials found a walkaround, and the payments were automatically converted into crypto on a centralized exchange. The platform of choice is Coinbase which has continued to oblige institutional investors seeking certainty.
However, shortly after receiving his pay in cryptocurrency, reports emerged that the mayor may have lost as much as $1000. This was due to Bitcoin’s and Ethereum’s price plummeting just four days after Adams’ payday. Bitcoin fell by 15.9%, while Ethereum plunged about 24.3%.
Although no one was aware of how he split his $5,900 investment between the two cryptocurrencies, that did not stop the speculation. A 50/50 split would have realized a loss of $1,186. Investing in one of either would have resulted in the Adams having $4,961for Bitcoin or $4,466 for Ethereum.
When quizzed on CNN over his possible losses in an interview, Adam seemed unfazed and brushed the questions aside. He made it clear that he was a long-term investor who had simply bought the dip. He further reiterated that he was hopeful of a rebound to ensure recovery.
CNN’s @DanaBashCNN asks NYC Mayor Eric Adams about taking his first paycheck in crypto: “How much money did you lose and do you have any regrets?”
Adams: “You buy low and hopefully you get the recovery that you desire.” pic.twitter.com/yg0cD4quvw
— The Recount (@therecount) January 23, 2022
In hindsight, the reports about his losses may have been too quick of the mark. In the intervening period since the price crash, Bitcoin and Ethereum have witnessed steady recovery in their prices, vindicating the mayor’s investment. Going by the current prices of the crypto assets, Mayor Adams may be up by as much as 13% on his initial investments. If he can hodl, the recovering prices will see him profit greatly.
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Calls For Crypto Payments On the Rise
Recently, as more institutions and individuals gain exposure to Bitcoin, a new trend of accepting payment in cryptocurrency has emerged. Several athletes, politicians, and everyday employees are vying to get paid this way.
Like NYC’s mayor, Miami’s Francis Suarez also divulged last year that he was taking his next paycheck in bitcoin. Both men are part of the growing number of politicians lining up to support Bitcoin.
NBA franchise Sacramento Kings is expected to become the first major sports organization to accept Bitcoin as payment for employees and players. A former Carolina Panthers linebacker, Russell Okung, became the first NFL player paid in Bitcoin after converting half of his $13 million contract. Other notable professional athletes, including NFL players Aaron Rodgers, Trevor Lawrence, Sean Culkin, Saquon Blakely, and NBA star Cade Cunningham, have followed suit since then.
Bitcoin payment will soon quickly become the norm at the going rate as more people see it as an inflation hedge and a better store of value. Therefore, it is imperative that US labor laws are tweaked or updated to ensure ease in transacting directly in crypto.
Do you think crypto salaries will ever become mainstream? Let us know your thoughts in the comments below.
The post New York City Mayor’s January Paycheck in Crypto Up 13% appeared first on The Tokenist.
