NFL Player Russell Okung: Converts Half His NFL Salary to Bitcoin! Good Idea or Big Mistake?

I recently came across an interesting story:

Russell Okung to convert half his NFL salary to Bitcoin.

Per the article:

Carolina Panthers tackle Russell Okung has agreed to receive half of his $13 million salary in the form of the volatile cryptocurrency, a payments startup announced Tuesday.

Although the NFL still pays Okung in US dollars, the checks are now sent via direct deposit to Zap, a startup that converts traditional paychecks into bitcoin.

See the source image

Would you do it? Could you see yourself converting your salary to bitcoin?

From what I have seen, the opinions are split: Some say this is a good idea, because bitcoin will go much higher. Others think this is a mistake because it’s not a stable currency, and we don’t know what it will do next.

What do you think?

Personally, I wouldn’t do it. Bitcoin is doing GREAT now, but where will it be in 6-12 months? This time last year, it was trading around $7000 per bitcoin.

Capital Gains or Cash Flow?

This is a great example of capital gains versus cash flow. if you anticipate bitcoin going up, this would be a good move for capital gains, which is the premise of “buy low, sell high.”

There are some who say bitcoin will reach $100,000. if it does, Russell Okung will look like a GENIUS. But what if it doesn’t? There’s a chance it could go back down. This is where cashflow comes into the equation.

Cashflow is the investment strategy where income is received from investments, preferably on a consistent basis. Unlike capital gains, the money received is not reliant on if the value of the asset goes up or down.

For example, here’s what I would have done if I were in Okung’s position:

First, I would have found some good rental property deals on residential units. The key would be to find rental units near large employment centers such as hospitals. The reason is people tend to live where the jobs are located.

Next, I’d purchase multiple units in several different areas where jobs are plentiful. This would increase my odds of being successful as a real estate investor. If one rental property lags behind, the others (hopefully) will pick up the slack.

Doing it this way gives me passive income: the rental properties are assets that can generate revenue every month. I can also pass the land down to my kids. Land can lose value, but unlike bitcoin, it can’t go down to zero. It will retain some type of value, even if the building on the land are destroyed.

With the passive income received from rental properties, I’d begin to purchase assets. NOW I’d buy bitcoin (if it was a wise investment) and other assets like gold and silver. This way, I’m increasing my wealth in a variety of ways, and over time, I could have the same amount of bitcoin as if I had bought it originally. What makes this an even better strategy is now I’d have my bitcoin and rental property that generates monthly revenue.

Capital gains are more fun, but I think generating cash flow first, THEN accumulating the bitcoin is a safer, more lucrative deal. If he buys the bitcoin today and it goes to zero, there’s nothing he can do to raise its value. However with land, there may be some things he can do to increase the value of his property, making it more valuable over time.

So, what would you do? If you were in his place, would you buy bitcoin? Invest in the stock market? Keep it in cash? There are many different investment strategies out there. Which is your favorite?

The key to successful investing is knowing what’s available to you. Many of the best financial tips are not taught in school. Get more information on investing and passive income in my book Invest For Success: Millionaire Wealth Strategies Not Taught in school. Available on Amazon.

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