June 7, 2024
We are seeing more and more players use bitcoin as a tool for building wealth. What is it about bitcoin that seems to make it the perfect match for professional athletes?
Reserve Client Manager
As Superbowl LVI approaches, I’ve been reflecting on how amazing it is that bitcoin is fundamentally changing the lives of professional athletes. We are seeing more and more players use bitcoin as a tool for building wealth. This seems to be happening organically, as if bitcoin fills a crucial need for them. But what is that need? What is it about bitcoin that seems to make it the perfect match for professional athletes?
Growing up, I wanted to play quarterback for the Dallas Cowboys. Playing professional sports is a dream shared by millions of young people. And why not? Athletes get paid incredibly well to play a game they love in front of millions of adoring fans.
However, when the time comes to hang up their cleats, many sports stars face the difficult task of preserving their career earnings for the long term. In fact, Sports Illustrated reported 78% of NFL players and 60% of NBA players face serious financial hardships after they retire. It’s easy to dismiss them as irresponsible, but if we look a bit deeper at the financial obstacles these young athletes encounter, we find they shouldn’t bear all the blame.
Success in sports happens at a young age. Professional athletes are unique in that they earn the vast majority of their lifetime income in their twenties. Most have yet to develop the skills and experience required to manage that kind of money. As a result, they rely on other people to support and manage their career. Athletes prove to be a financially vulnerable group as they put their trust in third parties such as agents, money managers, and family members, many of whom have their best interests in mind, and some of whom inevitably do not.
But why does this have to be complicated – why can’t athletes just save up their cash? Saving for the future in our current system isn’t so easy. Concepts like investment diversification, risk management, and inflation are not the domain of athletes, nor should they be. As a result, some athletes successfully save, but most do not — as evidenced by the staggering number of athletes who make a lot of money during their careers but then experience money problems after they retire.
The reason saving isn't simple is built into our money itself. In order for our monetary system to work, credit must continuously be created. (Another way to say this is that money must continually be printed). Over time, inflation erodes the spending power of our dollars, making cash a terrible long-term saving tool.
Inflation is a fact of life in the modern world, but in recent years the problem has gotten much worse. Over 40% of US dollars in circulation were printed in the last 24 months. Americans are now facing the highest levels of inflation in 40 years. Saving dollars results in an automatic loss of wealth, as these dollars become worth less over time. Record low interest rates combined with record high inflation force savers to seek riskier investment opportunities, which can result in losses, in order to protect our dollars from devaluation.
For athletes, the problem is amplified even further. How can a young person who is earning a lot of money, and who is laser focused on a physically demanding career, lay the foundation for a long life of wealth and stability? Athletes need a place to preserve the wealth they accumulate that is safe and secure for the long term.
Judging by their actions, many athletes believe bitcoin offers a solution. Here’s what I think is going on: First, because its monetary policy is fixed to 21 million, bitcoin that athletes set aside for themselves can never be diluted away, even after many years. So while the dollar was designed to lose value over time, bitcoin was designed to do just the opposite. Second, since access to a bitcoin wallet is controlled by a simple passphrase, athletes do not need complicated financial management systems and advisors to save and invest for the future.
The opportunity window for athletes to maximize earnings is very small. Too often, the superstars who put their bodies at risk and inspire us on the field are left with little to show for their efforts. Bitcoin provides a financial safe haven. There is no better monetary technology to preserve this sacrifice over the long-term. Today, bitcoin’s primary monetary role is as a dead-simple store of value. And such a tool could not be more perfect for the young athletes we look up to, in order to help them live the fulfilling lives they deserve after life on the field.
It should come as no surprise that some of the biggest names in the NFL have already adopted bitcoin. Tom Brady has the famous “bitcoin laser eyes” in his twitter profile picture, Aaron Rodgers is taking a portion of his salary in bitcoin this year, and wide receiver Odell Beckham Jr. is converting his entire salary this season into bitcoin. See a tweet from star running back Saquon Barkley regarding his decision to receive his paid endorsements in bitcoin below (click in for the rest of the thread):
I want my career earnings to last generations. The average NFL career is 3 years and inflation is real.
Saving and preserving money over time is hard, no matter who you are.
In today’s world: How do we save?
This is why I believe in #bitcoin
Almost all professional athletes make
— Saquon Barkley (@saquon) January 11, 2022
\n\n
Athlete adoption is off to a great start, but this is just the beginning. Although I’m not throwing touchdowns for the Cowboys today, I'm excited for the opportunity to educate athletes about bitcoin and how it can be a game-changer for their financial success.
February 9, 2022
We are seeing more and more players use bitcoin as a tool for building wealth. What is it about bitcoin that seems to make it the perfect match for professional athletes?
Reserve Client Manager
As Superbowl LVI approaches, I’ve been reflecting on how amazing it is that bitcoin is fundamentally changing the lives of professional athletes. We are seeing more and more players use bitcoin as a tool for building wealth. This seems to be happening organically, as if bitcoin fills a crucial need for them. But what is that need? What is it about bitcoin that seems to make it the perfect match for professional athletes?
Growing up, I wanted to play quarterback for the Dallas Cowboys. Playing professional sports is a dream shared by millions of young people. And why not? Athletes get paid incredibly well to play a game they love in front of millions of adoring fans.
However, when the time comes to hang up their cleats, many sports stars face the difficult task of preserving their career earnings for the long term. In fact, Sports Illustrated reported 78% of NFL players and 60% of NBA players face serious financial hardships after they retire. It’s easy to dismiss them as irresponsible, but if we look a bit deeper at the financial obstacles these young athletes encounter, we find they shouldn’t bear all the blame.
Success in sports happens at a young age. Professional athletes are unique in that they earn the vast majority of their lifetime income in their twenties. Most have yet to develop the skills and experience required to manage that kind of money. As a result, they rely on other people to support and manage their career. Athletes prove to be a financially vulnerable group as they put their trust in third parties such as agents, money managers, and family members, many of whom have their best interests in mind, and some of whom inevitably do not.
But why does this have to be complicated – why can’t athletes just save up their cash? Saving for the future in our current system isn’t so easy. Concepts like investment diversification, risk management, and inflation are not the domain of athletes, nor should they be. As a result, some athletes successfully save, but most do not — as evidenced by the staggering number of athletes who make a lot of money during their careers but then experience money problems after they retire.
The reason saving isn't simple is built into our money itself. In order for our monetary system to work, credit must continuously be created. (Another way to say this is that money must continually be printed). Over time, inflation erodes the spending power of our dollars, making cash a terrible long-term saving tool.
Inflation is a fact of life in the modern world, but in recent years the problem has gotten much worse. Over 40% of US dollars in circulation were printed in the last 24 months. Americans are now facing the highest levels of inflation in 40 years. Saving dollars results in an automatic loss of wealth, as these dollars become worth less over time. Record low interest rates combined with record high inflation force savers to seek riskier investment opportunities, which can result in losses, in order to protect our dollars from devaluation.
For athletes, the problem is amplified even further. How can a young person who is earning a lot of money, and who is laser focused on a physically demanding career, lay the foundation for a long life of wealth and stability? Athletes need a place to preserve the wealth they accumulate that is safe and secure for the long term.
Judging by their actions, many athletes believe bitcoin offers a solution. Here’s what I think is going on: First, because its monetary policy is fixed to 21 million, bitcoin that athletes set aside for themselves can never be diluted away, even after many years. So while the dollar was designed to lose value over time, bitcoin was designed to do just the opposite. Second, since access to a bitcoin wallet is controlled by a simple passphrase, athletes do not need complicated financial management systems and advisors to save and invest for the future.
The opportunity window for athletes to maximize earnings is very small. Too often, the superstars who put their bodies at risk and inspire us on the field are left with little to show for their efforts. Bitcoin provides a financial safe haven. There is no better monetary technology to preserve this sacrifice over the long-term. Today, bitcoin’s primary monetary role is as a dead-simple store of value. And such a tool could not be more perfect for the young athletes we look up to, in order to help them live the fulfilling lives they deserve after life on the field.
It should come as no surprise that some of the biggest names in the NFL have already adopted bitcoin. Tom Brady has the famous “bitcoin laser eyes” in his twitter profile picture, Aaron Rodgers is taking a portion of his salary in bitcoin this year, and wide receiver Odell Beckham Jr. is converting his entire salary this season into bitcoin. See a tweet from star running back Saquon Barkley regarding his decision to receive his paid endorsements in bitcoin below (click in for the rest of the thread):
I want my career earnings to last generations. The average NFL career is 3 years and inflation is real.
Saving and preserving money over time is hard, no matter who you are.
In today’s world: How do we save?
This is why I believe in #bitcoin
Almost all professional athletes make
— Saquon Barkley (@saquon) January 11, 2022
\n\n
Athlete adoption is off to a great start, but this is just the beginning. Although I’m not throwing touchdowns for the Cowboys today, I'm excited for the opportunity to educate athletes about bitcoin and how it can be a game-changer for their financial success.
