Saquon Barkley is one of the best running backs in the NFL…
The New York Giants selected him second overall in the 2018 NFL Draft… As a rookie, Barkley set numerous league and franchise records… And he was the NFL Offensive Rookie of the Year and earned a Pro Bowl nod.
He makes millions of dollars in salary and bonuses each year. And he earns over $10 million in annual endorsement income from companies like Nike, Pepsi, and Toyota.
But guess what?
Barkley no longer wants his endorsement money paid in U.S. dollars. He wants it in bitcoin.
Here’s Barkley from a recent interview:
You see inflation. You see how high it is right now. And you learn that you can’t save yourself to wealth. You can’t. That’s why I’m going to be taking my marketing money in bitcoin.
Through a partnership with Strike, Barkley will now accept future endorsement pay in bitcoin.
And he isn’t the only NFL player who is diversifying from the U.S. dollar to bitcoin…
Last year, Carolina Panthers offensive tackle Russell Okung took half of his $13 million salary in bitcoin. At one point, Okung was the highest-paid player in the NFL… simply by taking part of his salary in bitcoin.
Earlier this year, Chiefs tight end Sean Culkin became the first NFL player to convert his entire salary ($920,000) to bitcoin.
Although Culkin was later cut by the Chiefs, he previously said:
Considering my career – particularly its physical demands, and brevity – it makes the most sense to be paid in sound money that I believe protects its purchasing power over time.
And then there’s Jacksonville Jaguars quarterback Trevor Lawrence, who signed a multiyear, multimillion-dollar endorsement deal with crypto platform Blockfolio. He had his complete signing bonus deposited directly into his crypto account.
Pro athletes all over the world are making billions of dollars in salaries and endorsements. And they’re clearly starting to worry about inflation.
Despite its recent pullback (more on that in a moment), some pro athletes believe bitcoin will protect their purchasing power in the future. That’s a strong testament to the staying-power of bitcoin from guys who make millions of dollars per year.
In a moment, I’ll show you how you can beat inflation by putting a portion of your income in crypto. But first let’s cover why these stars have reason to worry…
Inflation Is Back
Right now, the U.S. is experiencing fiscal-driven inflation. Since the start of the pandemic in March 2020, the U.S. government has spent an estimated $8 trillion in stimulus and money printing.
Add in the reopening of the economy… pent-up demand from consumers… supply chain bottlenecks… and labor shortages… and you get rising inflation.
You’ve likely seen extreme price increases reflected in commodities like lumber and gas… real estate… groceries… and even used cars.
And the numbers confirm it.
As measured by the “Consumer Price Index” (CPI), inflation was up 5.4% for the trailing 1-year ended June 30. To put that into perspective, there has only been one month when trailing 1-year inflation was greater than 5.4% in the last 30 years.
With higher inflation and the Fed maintaining a zero-rate policy, the real Fed Funds Rate is negative 5.4%. And that means, most traditional savings and income vehicles also have negative real yields.
Let me explain what that means…
In normal times, investors can make a “real” yield. That means the yield they earn on a government bond is greater than inflation.
For example, if a bond pays 3% interest and inflation is at 2%, your real yield is 1%.
As long as you’re earning a positive real yield, you’re maintaining and growing your purchasing power.
But when real yields go negative, you’re no longer maintaining your purchasing power.
Today, the average savings account yields 0.06%… the average 3-year CD yields 0.20%… the 10-year Treasury yields 1.30%… and the average U.S. corporate bond yields 3.6%.
Subtract 5.4% from any of those options and you’re in the real red.
Now, the Fed suggests the current bout of inflation is “transitory.” That’s a fancy way of saying it’s short-lived.
We don’t know whether inflation is transitory or not. But regardless, I do know crypto yields can beat it.
Some rates are 297 times higher than traditional savings accounts… and blow away the yields you’ll find in the anemic bond market.
Crypto Rates Will Outpace Inflation
As pro athletes get more comfortable with crypto, I believe they’ll eventually realize they can earn astronomical interest rates on their crypto assets.
At PBRG, we call the income you earn from your crypto Tech Royalties.
To earn Tech Royalties, you deposit your crypto assets on a crypto platform. In return, you receive more crypto as a reward. It’s similar to earning interest from a bank account. But the interest you earn on crypto platforms is much, much higher.
How can these platforms pay such high yields?
Like banks, crypto platforms accept deposits and make loans. But the increased risk of holding crypto over cash is why they can compensate depositors with higher yields.
For instance, rates on crypto platforms like Celsius, Ledn, and Nexo can go as high as 17.8%. That’s 297 times higher than what you’ll get in a traditional savings account and 14 times the 10-year Treasury bond.
More importantly, they can pay more than three times the current rate of inflation.
Plus, Tech Royalties are paid in more crypto. So your “dividends” will appreciate at the same rate as the underlying token.
Now, I know bitcoin is in a brutal pullback. It’s down more than 50% from it’s all-time high of $64,000 earlier this year. Of course, no one likes to sit through these types of pullbacks. They’re not fun. But the future for bitcoin looks extremely bright.
And that’s because we’re seeing widespread adoption.
The Future Is Bright for Crypto Income
According to research firm MarketsandMarkets, crypto’s underlying blockchain technology will be worth $40 billion by 2025.
In fact, Fintech analytics company Portfolio Insider says the current bitcoin adoption rate has been outpacing the internet’s user growth rate and will reach 1 billion users in the next four years.
That’s nearly two times faster than the internet reached that landmark.
And it’s not only bitcoin…
According to a survey of 1,100 institutional investors by Fidelity Digital Assets, 70% said they expect to invest in or buy digital assets in the future.
Those surveyed include high net worth investors, family offices, digital and traditional hedge funds, financial advisors, and endowments.
With such a bright future ahead, it’s no wonder millionaire athletes are betting their future purchasing on bitcoin. And they’re not alone…
For instance, Mexico’s third-wealthiest man, Ricardo Salinas Pliego, believes all fiat currencies are a fraud… and if he had to hold a single asset for the next 30 years it would be bitcoin. And as I wrote last week, even politicians are getting on the bandwagon.
So don’t sweat the recent volatility. As Daily editor Teeka Tiwari says, it’s the price we pay for life-changing gains.
View this pullback a gift. It’s just setting the stage for the next move higher.
In the meantime, consider depositing a small stake on one of the crypto platforms I listed above. Not only will you earn yields significantly higher than the rate of inflation… but as bitcoin rebounds, your crypto dividends will appreciate, too.
Just remember, extra yield comes with extra risk. These platforms are not FDIC-insured or backed by the U.S. government.
So, be smart about your individual crypto position-sizing. And don’t put all of your crypto assets on one platform.
As always, be sure to do your own research before making any investments.
Analyst, Palm Beach Daily
P.S. While crypto is quickly becoming a safe haven from inflation, a $30 trillion revolution in its underlying technology is gaining momentum…
And at its current pace, Teeka believes it’ll be like buying Amazon back when it was just a small online bookseller in Jeff Bezos’s garage.
To learn more about the trillion-dollar technology that Teeka calls his “No. 1 Investment of the Decade,” click here.