Trevor Lawrence asked to be paid in Crypto currency

[Worstcaseontario]

Thats what you get with imaginary money.

[MJS]

It'll go back up.

[Fan in Chicago]

So it is true what they say about blondes...

[Sammy Watkins' Rib]

6 hours ago, RoyBatty is alive said:

Not all Crypto Currencies are created equal.  Depends which ones you own.

Are any of them not down at least 50% from their highs less than a year ago?

[cba fan]

6 hours ago, PromoTheRobot said:

How's that working out?

 

 

 

he can just hold it and hopes it rebounds. 

[KDIGGZ]

3 hours ago, BillsShredder83 said:

I like you lol we could hang out 

[cba fan]

5 hours ago, GoBills808 said:

Is it? Doesn't it get taxed?

it has to get taxed.

if not we all could ask for our paychecks in crypto then immediately convert it to dollars and avoid income TAX 100%. Why would not everyone do this if allowed?

[cba fan]

4 hours ago, DCofNC said:

Taxed twice and fees.  Collect 10M get taxed 3.2M, buy 6.8M in crypto, pay 1% of that in fees and then get taxed on the sale. Or, be paid in crypto before tax, get taxed for it at EOY, hopefully the gains pay for some of the taxes.  Kinda like stocks.  Probably didn’t work out as well in this case.

?? would you not pay tax only on the gains?  over the 6.8 mill you put in. ??

 

but better question is: this makes no sense. Isn't crytpo just like other currency.

 

If i convert 1000 USD to Canadian dollars(1000 USD worth) and put them in my wallet to spend when i visit Canada. I don't get taxed when the buying power of those Canadian dollars go up due to exchange rate changes.

 

Can someone explain this?

[Mikie2times]

56 minutes ago, cba fan said:

?? would you not pay tax only on the gains?  over the 6.8 mill you put in. ??

 

but better question is: this makes no sense. Isn't crytpo just like other currency.

 

If i convert 1000 USD to Canadian dollars(1000 USD worth) and put them in my wallet to spend when i visit Canada. I don't get taxed when the buying power of those Canadian dollars go up due to exchange rate changes.

 

Can someone explain this?

I'm not a CPA (seems like this needs to be stated in todays world). That said, Crypto is not considered currency in the US, it is considered property and is subject to capitol gains taxes if not held for a year. So if you elected to be paid in Crypto you would need to hold for one year and not convert it into fiat currency to avoid paying capitol gains. Further, any additional gains that you accrued from your initial payment, such as the Crypto currency rising, would also be subject to taxes in the same fashion as your initial payment.

 

So hypothetical, say I'm paid $10,000 in BTC. If I convert that BTC to fiat inside of one year, I will pay standard income tax on the 10k in accordance with my tax bracket and I will pay capitol gains taxes as well. If I wait one year, I will just pay taxes in accordance with my income tax bracket. If my original $10,000 becomes $20,000, it's the exact same process. The additional $10,000 is subject to potentially both income and capital gains should I not wait a full year prior to converting to fiat. That is the event that triggers the tax, the conversion to fiat currency. So if any of these guys flipped the BTC right away and avoided the down turn, they also paid capitol gains to do so. Fortunately you can deduct as much as $3,000 per year in losses, but I don't think that will be very comforting for them to hear.   

 

 

[NoSaint]

7 hours ago, billsbackto81 said:

Not my cup of tea but I won't make fun of the man or anyone else who took a chance. Not all investments pan out and scared money don't make money. At least he has plenty of money and can recomp his losses eventually. 

also, crypto in general is up hugely if you stretch the timeline at all. 
 

ol Trevor hit at a bad timing but most investments look rough over his unfortunate timeline. 
 

it’s not impossible to see new ATH down the line either. Down now does not mean down forever 

6 hours ago, nedboy7 said:

So many people acted like they were investment geniuses touting crypto for a while.  Everything they said has shown to be false.  Imagine. 

yea those poor suckers that bought Bitcoin 5-10 years ago. 

[GreggTX]

If you are considering investing in cryptocurrency, DON'T. It's a ponzi scheme. The people at the top get a percentage of your investment and you get squat unless you can find enough suckers to offset your loss. Just say "No thanks." and keep your hard earned cash.

[GunnerBill]

32 minutes ago, GreggTX said:

If you are considering investing in cryptocurrency, DON'T. It's a ponzi scheme. The people at the top get a percentage of your investment and you get squat unless you can find enough suckers to offset your loss. Just say "No thanks." and keep your hard earned cash.

 

I watched that Netflix doc recently about the Canadian fella who ran a crypto exchange that went bust, taking people's savings with it and then died in mysterious circumstances in the far east. I understand basically nothing about crypto but any curiosity I had over it was pretty much extinguished. 

[machine gun kelly]

12 hours ago, KDIGGZ said:

Any investment you make can go up or down. If you are over-leveraged or sell it when it's down then you are an idiot no matter what you are into. Typically you sell when it goes back UP so the fluctuations shouldn't bother you if you are in something long term. Did you think people that owned real estate were dumb in 2008?

 

When things go down is when you should be buying. Crypto is on sale right now. If you think it's dumb then don't buy it, but I think it's already proven that it has staying power. It's bottomed out like this a few times now and the current lows are the 2017 highs, back when everyone started freaking out about it as a great investment. The next time it bottoms out it might drop under 6 figures and people will be laughing about it again then saying how dumb people were to buy it when a lot of us bought it for pennies on the dollar and are way up either way.

 

Also, some purists people believe crypto is the $ of the future so if that's the case then it doesn't matter how it correlates to USD because if some day USD doesn't exist or inflation goes so high that it's worthless then you want crypto stashed away either way.

For me it’s not that Bit Coin doesn’t have a place or avenue of you’re well informed, but if you have a finite first career before you move onto you’re lifelong career, and it’s a volume of $ you probably won’t see later in life,  wouldn’t you want to be somewhat risk averse and tap the toe in the waters vs. jumping in head first.  
 

Ah the youth. To be young and dumb and think you know more than people you’re elders.  He could’ve taken that contract traditionally, done his hw. With hopefully a good advisor, and maybe placed 5% of his contract to then assess the ROI.

 

Im too old in my early 50’s to take on that risk.

[Alphadawg7]

So stupid.  You don’t speculate the majority of your net worth on something highly volatile…that’s investing 101 and not exactly rocket science.  
 

It’s why (before crypto) when in investing in volatile and high reward yet high risk commodities versus stocks, you only put a max of 5% to 10% of your investment portfolio into commodities, if you even did at all.  
 

For anyone to put that much of their net worth into crypto is both stupid and shows how naive Millennials really are where they think all they need to know is on Twitter and Reddit when it comes to investment strategies.  
 

Crypto has made a lot of people wealthy, I mean I have friends, multiple friends, who have Individually made hundreds of millions on bitcoin and especially ethereum.  But they were in very early.  I know a lot of people who did very well even after the values got high, but these were investments using a calculated amount of money.  Not just blindly putting their entire net worth into it while at the highest values it’s seen.  
 

And now we are seeing a lot of people who got in at the higher values who have now lost a lot of money and it’s a guess on whether they will ever even get back to even or continue to lose.  
 

Crypto will likely bounce back, but it’s a big question mark how high it will get back to, plus we don’t know how much Trevor sold as it dropped, he may have already realized a lot of those losses or he could have sold very little and can MAYBE claw some value back.  But it’s so volatile, that it’s possible it could keep going down as well.  
 

Just a foolish move to wager that much money on a highly volatile market.

[thenorthremembers]

Sounds a lot like most peoples 401ks right now.  

[todd]

12 hours ago, HappyDays said:

It turns out if you buy into a new market after watching a celebrity Super Bowl ad, you're not getting in on the ground floor.

 

Exactly. As soon as they started advertising it, you just know its a ploy to get the last suckers on the Ponzi scheme plane before people sell and tank it. I feel bad for the fools who bought in after seeing those ads. That should have been a red flag.

 

Blockchain technology is interesting and holds lots of potential, but it really not ready for primetime at all, nor is the crypto associated with it a stable ore reliable investment. To me crypto investment is just like gambling. Don't "invest" more than you can afford to lose in crypto. But maybe you will get lucky. And really, luck is all that is involved at this point.

[skibum]

Dang, I'm glad I'm not out there trying to scrape by with just 9 million bucks to my name. 

[ddaryl]

14 hours ago, ControllerOfPlanetX said:

I get paid in soybeans.

 

Soybean futures are up!!!!

[aristocrat]

If only he'd invested in tulips!

[ddaryl]

1 hour ago, thenorthremembers said:

Sounds a lot like most peoples 401ks right now.  

 

 

Crypto is high risk backed by nothing. The market was severely over valued for the last 2 years do to easy money. The market just corrected 20% Bitcoin is down more than 60%

 

 

 

Edited June 22, 2022 by ddaryl

[DasNootz]

9 hours ago, Sammy Watkins' Rib said:

Are any of them not down at least 50% from their highs less than a year ago?

USDT and USDC are at least two that meet you criteria.

[DasNootz]

8 hours ago, KzooMike said:

I'm not a CPA (seems like this needs to be stated in todays world). That said, Crypto is not considered currency in the US, it is considered property and is subject to capitol gains taxes if not held for a year. So if you elected to be paid in Crypto you would need to hold for one year and not convert it into fiat currency to avoid paying capitol gains. Further, any additional gains that you accrued from your initial payment, such as the Crypto currency rising, would also be subject to taxes in the same fashion as your initial payment.

 

So hypothetical, say I'm paid $10,000 in BTC. If I convert that BTC to fiat inside of one year, I will pay standard income tax on the 10k in accordance with my tax bracket and I will pay capitol gains taxes as well. If I wait one year, I will just pay taxes in accordance with my income tax bracket. If my original $10,000 becomes $20,000, it's the exact same process. The additional $10,000 is subject to potentially both income and capital gains should I not wait a full year prior to converting to fiat. That is the event that triggers the tax, the conversion to fiat currency. So if any of these guys flipped the BTC right away and avoided the down turn, they also paid capitol gains to do so. Fortunately you can deduct as much as $3,000 per year in losses, but I don't think that will be very comforting for them to hear.   

 

 

I don't believe this is true.  You are taxed income tax based upon the cash value of the crpyto (as of the moment of transfer) paid by your employer.  Your capital gains or losses are calculated based upon that price and the price at trade or sale.  Short term capital gains taxes are paid if you sell or trade within 12 months, long term if over one year.

If I give an employee Bills tickets, large gift cards, a vehicle etc - they claim the cash equivalent of the tickets on their income taxes - crypto would be no different.  
 

[Dr. K]

Besides being a libertarian fantasy, Crypto is a playground for scammers and fools. It exploits the desperate and vulnerable.

 

I post this as a public service. It is long, but it says it all: 

 

 

 

 

[brianthomas]

In the past 20 years the US Dollar lost more than half its value. I'll have to revise that number as the pace of this has changed. But now theres a scam

 

Amazon's stock at one point lost 90% of its value. If u saw it drop 90% you'd probably think it was a scam, i know i might've.

But whoever held thru that or bought the fear, reaped the rewards.

 

Bitcoin is down 61% this year, still up 431% since 2019 from 1/2019 to 6.22/22

S&P is down 24% this year, still up 48% since 2019 same period.

 

Since bitcoin moves in 4 year cycles, the thinking is you make your 5-10x+ during the insane bull runs & that's more than enough to withstand the downturn.

Diversification is key, education paramount, & only investing what u can afford to lose is wise, as its a highly speculative asset class.

 

It remains to be seen if BTC will succeed in its intended vision & there's many scams in the space & sensible regulation is desperately needed/wanted. But Bitcoin has outperformed every other asset since its creation. Gold, the DOW, beans, socks u name it. I dont look at crypto as currencies per se because most arent intended to be currencies but as digital assets, tokenized real world assets (as the world is moving more digital & not less) or investing in software & AI & networks. Its such a diverse space its difficult to generalize what it is haha.

[RoyBatty is alive]

16 hours ago, Rigotz said:

 

.... not recently. They have all gotten smacked the past 6 months.

That is true but It is all relative, I would much rather lose 50% on Bitcoin in the past year than 99% in a few days like some others.

[DrDawkinstein]

2 hours ago, DasNootz said:

I don't believe this is true.  You are taxed income tax based upon the cash value of the crpyto (as of the moment of transfer) paid by your employer.  Your capital gains or losses are calculated based upon that price and the price at trade or sale.  Short term capital gains taxes are paid if you sell or trade within 12 months, long term if over one year.

If I give an employee Bills tickets, large gift cards, a vehicle etc - they claim the cash equivalent of the tickets on their income taxes - crypto would be no different.  
 

 

I dont think that's right. I guess it depends if crypto is treated as cash or like a stock considering you have to sell it to realize any actual value.

 

Stock options arent taxed twice, that is why so many CEOs use them to skirt around paying full income tax. They just take heavy stock options, sell them a year later, and only pay long term gains which is the lowest tax rate.

 

It would make more sense to me if the crypto is not taxed as income when originally paid, and only taxed at sale.

[Fan in Chicago]

9 hours ago, NoSaint said:

also, crypto in general is up hugely if you stretch the timeline at all. 
 

ol Trevor hit at a bad timing but most investments look rough over his unfortunate timeline. 
 

it’s not impossible to see new ATH down the line either. Down now does not mean down forever 

 

Hedging would be a good strategy. Historically there have been lot of cases of shiny new toys whose luster wears off, sometimes too rapidly. 

IMO, his mistake was in going all in. 

[Buffalo Junction]

Could be worse…. He could’ve taken his pay in frozen orange juice. 

[nedboy7]

8 minutes ago, Buffalo Junction said:

Could be worse…. He could’ve taken his pay in frozen orange juice. 

 

Why?  Is FOJ down? 

[Buffalo Junction]

24 minutes ago, nedboy7 said:

 

Why?  Is FOJ down? 

JK

[SoTier]

18 hours ago, What a Tuel said:

Whats the advantage to being paid in crypto as opposed to being paid in usd and then buying crypto with it? Isnt it taxed as income either way?

 

Maybe the dude has abandoned all financial transactions based on USD.   Probably not the wisest move since crypto isn't accepted for most ordinary purchases.

[cba fan]

12 hours ago, KzooMike said:

I'm not a CPA (seems like this needs to be stated in todays world). That said, Crypto is not considered currency in the US, it is considered property and is subject to capitol gains taxes if not held for a year. So if you elected to be paid in Crypto you would need to hold for one year and not convert it into fiat currency to avoid paying capitol gains. Further, any additional gains that you accrued from your initial payment, such as the Crypto currency rising, would also be subject to taxes in the same fashion as your initial payment.

 

So hypothetical, say I'm paid $10,000 in BTC. If I convert that BTC to fiat inside of one year, I will pay standard income tax on the 10k in accordance with my tax bracket and I will pay capitol gains taxes as well. If I wait one year, I will just pay taxes in accordance with my income tax bracket. If my original $10,000 becomes $20,000, it's the exact same process. The additional $10,000 is subject to potentially both income and capital gains should I not wait a full year prior to converting to fiat. That is the event that triggers the tax, the conversion to fiat currency. So if any of these guys flipped the BTC right away and avoided the down turn, they also paid capitol gains to do so. Fortunately you can deduct as much as $3,000 per year in losses, but I don't think that will be very comforting for them to hear.   

 

 

ty but question.

 

if i was paid 24 million dollars worth of crypto(then got cold feet and had a change of heart) and then immediately converted it to dollars. Same day lol.

 

I only pay income taxes on a 24 million dollar of income value right?(crypto value had not changed. Yeah i was fast lol)

 

No capital gains tax as no capital gains made. Right?

 

 

[NoSaint]

1 hour ago, Fan in Chicago said:

Hedging would be a good strategy. Historically there have been lot of cases of shiny new toys whose luster wears off, sometimes too rapidly. 

IMO, his mistake was in going all in. 

yes, agreed that having a singular investment in your portfolio is a bad choice. 

 

though on this individual case we have no idea how much stayed in for how long. Or when the actual payments were disbursed either. It wouldn’t change the idea that a singular investment is incredible risk but for all this writer knows - he could’ve made a fortune with that risky choice if the payment was in a dip and liquidates at highs later in the year. Buying lottery tickets is a bad retirement plan but some people do win - and we don’t really know details in what he played.

[DrDawkinstein]

11 minutes ago, cba fan said:

ty but question.

 

if i was paid 24 million dollars worth of crypto(then got cold feet and had a change of heart) and then immediately converted it to dollars. Same day lol.

 

I only pay income taxes on a 24 million dollar of income value right?(crypto value had not changed. Yeah i was fast lol)

 

No capital gains tax as no capital gains made. Right?

 

 

 

You would pay short term capital gains rate which is just a fancier name for regular income tax rate.

 

The savings is waiting for a year before cashing in.

[RoyBatty is alive]

2 hours ago, DrDawkinstein said:

 

I dont think that's right. I guess it depends if crypto is treated as cash or like a stock considering you have to sell it to realize any actual value.

 

Stock options arent taxed twice, that is why so many CEOs use them to skirt around paying full income tax. They just take heavy stock options, sell them a year later, and only pay long term gains which is the lowest tax rate.

 

It would make more sense to me if the crypto is not taxed as income when originally paid, and only taxed at sale.

No he/she is correct.  You are taxed at the "value" you are paid.

27 minutes ago, cba fan said:

ty but question.

 

if i was paid 24 million dollars worth of crypto(then got cold feet and had a change of heart) and then immediately converted it to dollars. Same day lol.

 

I only pay income taxes on a 24 million dollar of income value right?(crypto value had not changed. Yeah i was fast lol)

 

No capital gains tax as no capital gains made. Right?

 

 

Be taxed like regular short term income, same as if you didnt immediately convert it.  The taxable event was when the employer paid you the $24 million in crypto.  Then your cost basis is $24 million in perpetuity. if you sell if in a year for a loss you can declare a short term cap gain loss and vice versa pay taxes if it went up.

[PromoTheRobot]

3 hours ago, brianthomas said:

In the past 20 years the US Dollar lost more than half its value. I'll have to revise that number as the pace of this has changed. But now theres a scam

 

Amazon's stock at one point lost 90% of its value. If u saw it drop 90% you'd probably think it was a scam, i know i might've.

But whoever held thru that or bought the fear, reaped the rewards.

 

Bitcoin is down 61% this year, still up 431% since 2019 from 1/2019 to 6.22/22

S&P is down 24% this year, still up 48% since 2019 same period.

 

Since bitcoin moves in 4 year cycles, the thinking is you make your 5-10x+ during the insane bull runs & that's more than enough to withstand the downturn.

Diversification is key, education paramount, & only investing what u can afford to lose is wise, as its a highly speculative asset class.

 

It remains to be seen if BTC will succeed in its intended vision & there's many scams in the space & sensible regulation is desperately needed/wanted. But Bitcoin has outperformed every other asset since its creation. Gold, the DOW, beans, socks u name it. I dont look at crypto as currencies per se because most arent intended to be currencies but as digital assets, tokenized real world assets (as the world is moving more digital & not less) or investing in software & AI & networks. Its such a diverse space its difficult to generalize what it is haha.

 

Lost half it's value? Compared to what exactly? 

[Billy Claude]

Nice story but not true. Lawrence had an endorsement deal with a crypto app.  The signing bonus for the endorsement deal was in crypto.  All Lawrence's money from the Jaguars (and probably most of the money from the endorsement) were in USD.

 

 

[US Egg]

1 hour ago, Billy Claude said:

Nice story but not true. Lawrence had an endorsement deal with a crypto app.  The signing bonus for the endorsement deal was in crypto.  All Lawrence's money from the Jaguars (and probably most of the money from the endorsement) were in USD.

 

 

An inaccurate tweet?…..but, it’s already a fact.

 

Sorry Trevor, you’re deemed an idiot, regardless.

[Alphadawg7]

There is only one investment you ever put a large portion of your net worth into…and that’s real estate.  It’s forever, there will never be more, and it will forever go up in value, even after it dips during recessions.  
 

Why these dumb idiot athletes invest in anything else is beyond me.  He could have put $10M into rental properties, paid cash, let a company manage the tenants and renters, and collected easily be generating $60k-$80k a month in rents for life all free and clear with no mortgages while his property portfolio value would continue to climb over time.

 

Its so easy it’s sickening to see athletes go broke.  Even when property values decline, rents stay the same.  It’s the easiest mail box money in the world, and it’s why the 1% club of the wealthiest people mostly built that wealth on real estate.  

[Ralonzo]

To paraphrase Warren Buffet: when I buy crypto, I still don’t own anything.