Burrowing cryptocurrency prices undercut salary check trend

The descent on the markets for cryptocurrencies has questioned a trend that reached its peak together with its price: to be paid for with digital assets.

Prominent and other public life personalities showed their plans to receive payments in crypto. But the value of the leading coins has dropped greatly this year, so that these payments in dollars are less worth.

Eric Adams, Mayor of New York City, was among the recipients. After taking office in January, he said that his first three salary checks on Coinbase, the crypto trading platform, were "automatically converted into Ethereum and Bitcoin".

His first two -week payment worth $ 9,925 before taxes in dollars was paid in January 21.

Since this date, Bitcoin and Ethereum's dollar values ​​have fallen by 20 percent and 29 percent. In the case of an even division of the two cryptocurrencies, Adam's first salary check would now be worth $ 7,416.

Adams was undeterred and compared the volatility in crypto to the stock market. "People who look at Bitcoin and say: 'Okay, it was dropped'. Well, what stocks have not been liked?" He recently said in an interview with the Financial Times and referred to the parallel weakness of the stocks this year.

He added that he had neither regretted nor thought about his decision to be paid in crypto, a step that should demonstrate the city's commitment to young industry.

"I lost about a hundred thousand dollars when the stock market fell from my 401 (K) crash," said Adams. "We know that it goes up and down. Bitcoin is here to stay, and the majority of the investment is here in New York City."

Athletes, including NFL players Aaron Rogers and Nascar driver Landon Cassill, have all agreed to get at least part of their payment in digital currencies in the past few months.

Trevor Lawrence, the quarterback of the NFL football team Jacksonville Jaguar, agreed to get his signing bonus of $ 22.6 million in cryptocurrency. If he kept it in Bitcoin, he would now only have $ 9.8 million, according to an analysis by the sports betting data company The Action Network.

Adams and Rogers announced their salary conversion in Bitcoin in November when the token approached his all -time high of $ 64,500. But the volatility of the wealth value means that it can quickly lose a significant part of its value. On Friday, Bitcoin fell by 2.4 percent to $ 29,478, which, according to the coinbase exchange, results in an overall market value of $ 561 billion.

The support of celebrities for cryptocurrencies has contributed to making the volatile assets known. In January, half of the Americans said that they were interested in receiving at least 10 percent of their salary in Krypto, according to a January survey by the Voyager cryptocurrency exchange.

"To be honest, if we had held this conversation two years ago, I would have said that it was a brilliant idea. Why don't you want your salary in crypto? It only goes upwards," said Mark Freebairn, who heads Chief Financial Officers at the Executive Search Group Odgers Berndson in London. "Now I would say that was idiotic."