Why NFL’s Sean Culkin is encouraging pro athletes to bank on Bitcoin, cryptocurrency

Sean Culkin, head of the Kansas City Chiefs, discusses converting his full salary into bitcoin.

Sean Culkin, who recently announced to the world that he was converting his salary to Bitcoin for 2021, now leads the NFL as an expert on cryptocurrency.

“I’ve had a lot of questions about crypto privately from people in the league, and we’re seeing more and more teams and players getting involved,” he told FOX Business. “It wasn’t long ago that few of us knew what this was about. But players understand firsthand that fiat currency depreciates over time, and they tend to refer to the concept of Bitcoin as To understand store of value immediately. “

The millennial professional athlete, who has a degree in finance and is working on an MBA, said he didn’t consider payments in cryptocurrency to be risky at all.

“Bitcoin is solid money – that is, it can transfer its value over time and space. It is a monetary network that enables individuals to be their own bank and protect their savings from the inflationary environment the world is in today.” is working.”

He said Bitcoin today is comparable to gold in previous generations.

“Gold is valuable because individuals believe it is right. A major reason for this is its scarcity when looking at the high inventory-to-flow ratio – a reflection of current inventory and annual emissions. As gold prices rise, miners are encouraged to do so to increase production output, which results in supply exceeding demand and lowering the price. It is also very difficult to check the total supply of gold. “

The 27-year-old tight end said that in the future, funding will not be based on actual reality, but will live primarily in the digital realm.

Los Angeles Chargers close end to Sean Culkin on Sunday, September 15, 2019 at Ford Field in Detroit, Michigan. (Getty Images)

“Bitcoin has similar characteristics, except that its algorithm is very transparent about the current supply and the amount to be mined. Bitcoin currently has an inventory of around 18.7 million, with a maximum supply of 21 million to be mined over time The price goes up and miners are encouraged to produce more. This becomes more difficult over time due to the system’s halving process that happens every four years. Each halving cycle means miners are twice as hard have to work to produce the same amount of bitcoin. Bitcoin is resistant to inflation. Because of its technological properties, it offers more utility and scalability than gold. The value can be transferred anywhere with Bitcoin without the friction associated with gold – transportation, security, time. Bitcoin is digital gold that is cheaper for future generations to use technology. “

Culkin said he wanted to build generational wealth for his family’s future.

“If you’ve denominated the S&P500 on the Fed’s balance sheet for the past few years, the chart will be flat. The same goes for other asset classes. Most assets have negative real returns right now, and if they appreciate, you have to. ” Ask yourself if the underlying asset is growing or the denominator is being devalued. Bitcoin and other digital assets top the Fed’s balance sheet. I view it as a generational game because of its supply and demand fundamentals – supply growth is algorithmically designed (until) to be maximum in 2140, and if demand increases and supply remains constant, the price will increase. “

Entering his fifth NFL season, Culkin signed a reserve / future deal in February and will receive $ 920,000 net if he forms the roster. He competes to be the primary backup for six-time Pro Bowl tight-end Travis Kelce.

Culkin has two receptions for 36 yards for his career; He spent his first three seasons with the Chargers before playing a game for the Ravens last season.

The self-proclaimed “market nerd” has a degree in finance from the University of Missouri and is currently working on an MBA from Indiana University’s Kelly School of Business.

Sean Culkin # 80 of the Los Angeles Chargers in action in the fourth quarter against the Miami Dolphins at Hard Rock Stadium on September 29, 2019 in Miami, Florida. (Getty Images)

BARSTOOL’S PORTNOY SAYS IT “WISHES” THAT IT COULD MANIPULATE THE CRYPTO MARKET LIKE ELON MUSK

For younger generations of men, nerd became cool, nerd became alpha. Culkin took advantage of this: “I have always been a hardworking student in general – but specifically for the markets that emerged during my studies.”

This fork in the road led him to his current movements.

“It started during my college days. During my senior year at Mizzou, I did an internship at Shelter Insurance as an Equity Research Analyst. Between training, training, and meetings, I looked for Bloomberg terminals, created Excel models, and followed them. It was great to find a passion and interest outside of football that could potentially turn into a career.

“As athletes, our days on the field will come to an end – be it right after college, a few years in the league, or over 10 years. Our game days are such a small window of time in relation to our entire lives.” and I didn’t want to look back and regret not having taken free education at a great university. “

This winter, he tweeted that he recommended his followers to diversify and allocate at least some of their investments in cryptocurrency.

These acts of service are his way of giving back for the opportunities given him.

“NFL athletes are blessed to have significant off-season free time. Even with proper feeding, exercise / conditioning, injury rehab, and injury prevention therapy, it usually doesn’t take more than four hours. I decide I invest in myself for the rest of the time. Creating new skills, reading books, educating yourself. “

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Los Angeles Chargers’ Sean Culkin watches from the sidelines prior to the game against the Detroit Lions on September 15, 2019 in Detroit, Michigan. (Getty Images)

Bitcoin, which was valued at less than $ 10,000 at the beginning of 2020, tripled its value from 2020 and recently traded at around $ 50,000 per coin.

Even by Bitcoin standards, this week has been pretty wild.

The price of the notoriously volatile digital currency fell nearly 30% at a time after the China Banking Association warned member banks about the risks associated with digital currencies. The decline narrowed to below 10% in the afternoon, but Bitcoin had still lost around $ 70 billion in market value within 24 hours.

Culkin said he was not concerned, “Volatility is part of crypto. For me, the initial investment thesis remains intact and I couldn’t imagine selling Bitcoin because of the short-term volatility. My time horizon has always been long and I view these price movements as an opportunity to to enlarge my position. ”

Bitcoin has lost about 38% of its value since April 13, when it hit a high of more than $ 64,800, according to Coindesk. The China warning was just the latest headwind: prior to Wednesday, Tesla’s decision not to accept digital currency as a means of payment for cars – after it was announced – and murmuring in Washington about stricter regulation of digital currencies had put pressure on Bitcoin. The price is still 31% up in 2021 and almost 300% up on the previous year.

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Sean Culkin, the head of the Kansas City Chiefs, talks about being the first NFL player to convert his full salary into bitcoin.

Culkin has no doubt about his outlook: “Stay here. Bitcoin has a market cap of 1 trillion, the first asset to grow to this size in such a short period of 12 years.”

He told FOX Business that while cryptocurrency has become the newest millennial male hobby, he doesn’t believe it should be the next intergenerational culture war.

“I think the best way to explain this to older generations is through digital gold history. … In the long run, it’s a store of value. Bitcoin and cryptocurrencies as a whole differ from traditional assets in their volatility – which is a hallmark of Wall Street and corporations alike When you zoom out and see the long-term game, the short-term volatility has little impact on how I view the asset given its average annual growth rate of more than 200%. I think it’s important to [people] to really research. I always urge my friends to do research, invest small in a retreat in the beginning, and keep learning if they want to invest more. “

The Associated Press contributed to this report.

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