Financial expert Saquon Barkley of Giants warns after Bitcoin investment: “It could go very badly very quickly”
Saquon Barkley has just made the riskiest decision of his career.
Fortunately for Giants fans, it had nothing to do with his ACL injury rehab – or anything to do with soccer. Barkley’s risk is financial.
“I will invest my marketing money in Bitcoin,” said Barkley to Anthony Pompliano on “The Best Business Show” in early July.
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This means that 100% of Barkley’s advertising money in Bitcoin is paid out through the payment app Strike. With countless Bitcoin success stories out there, Barkley is confident he will be one too – after all, he invests over $ 10 million annually, which could currently earn him 250.06 BTC. According to experts, however, Barkley should dampen his expectations.
“He’s taking a risk,” Forbes cryptocurrency expert Billy Barmbrough told NJ Advance Media. “A very important investment rule is that historical performance should not be used to predict future performance. While it may seem like a tempting idea, it is a very risky one. It could go very wrong, very quickly. “
The reason Barkley’s investment is so risky is because of Bitcoin’s volatility. The value fluctuates constantly and as Forbes put it in a recent analysis: “Anyone who is considering (investing in cryptocurrency) should be prepared to lose their entire investment.” The Bitcoin market makes it so unstable.
“The reason for the volatility is because it is a relatively immature market,” said Bambrough. “Nobody really knows what it should be rated for, so the price fluctuates quite a bit.
“Nobody can say with certainty how high the price will be in 6 months, a year or 10 years.”
Apart from the volatility, Barkley should also be concerned with future regulations for cryptocurrencies. Despite being largely deregulated, countries like China and South Korea have cracked down on crypto trading, causing massive losses in value. Bambrough said regulations like this could drain Barkley’s investment entirely.
“It’s hard to say what the rules will be like in the future,” said Bambrough. “It is possible that people who invest their money – or sponsorship deals – now will find that in a year they will no longer be able to access the crypto assets they invested in.”
Cryptocurrency instabilities could be devastating to millions of Americans – including several NFL players – in just a few years. Along with Barkley, rookie QB Trevor Lawrence and free agent Tackle Russell Okung had some of their contracts paid for in Bitcoin.
Barkley said his interest in Bitcoin was piqued after sidelining most of the 2020 season with a cruciate ligament injury. During that off-season, Barkley had conversations with his agent as well as Bitcoin investors Anthony and Joe Pompliano and Jack Mallers. These conversations convinced him to fully embrace it.
“If you see the KDs, the LeBrons and Bradys of the world and you want to create generational wealth, you can’t do that with the sport I play and the position I play and overcoming injuries,” said Barkley.
If Bitcoin stays stable, Barkley could make a significant profit. While he knows that a potential boom – or bust – on his investment won’t happen overnight, he is completely confident of his choice.
“We’ll see how right I am in a few years,” said Barkley.
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