Crypto Paycheck Looks Bad; NYC Mayor Stands by It
With the recent turmoil of cryptocurrency, the idea of getting paid in digital assets might not be as alluring, Financial Times (FT) wrote.
Celebrities and other public figures have said they wanted to get paid in cryptocurrencies.
But the payments haven’t been worth as much with the fall in crypto values.
New York City Mayor Eric Adams was one of those who wanted to get paid in crypto, with his first biweekly payment being $9,925 before taxes. But since then the values of bitcoin and ethereum have fallen by 20% and 29% respectively.
If the pay was split between those two coins, Adams would now have $7,416 for that first check, FT writes.
Adams announced his plan last November when bitcoin was around its record high of $64,500.
Adams has been undeterred and said the volatility was akin to the stock market. He said he didn’t have regrets about his decision to take his pay that way.
“I lost about a hundred-and-something thousand dollars when the stock market crashed out of my 401(k),” Adams said. “We know it goes up and down. Bitcoin is here to stay, and the bulk of the investment is here in New York City.”
The wild price fluctuations of crypto have gotten media attention, with the coin off 2.4% at $29,478 as of Friday (June 3).
As that’s going on, New York Attorney General Letitia James has handed down a warning about the dangers of investing in crypto.
Read more: NY AG Sounds Alarm Over Crypto Investments
She said it could be a risky decision and could result in “deep financial losses.”
“Over and over again, investors are losing billions because of risky cryptocurrency investments,” James said in a press release. “Even well-known virtual currencies from reputable trading platforms can still crash, and investors can lose billions in the blink of an eye. Too often, cryptocurrency investments create more pain than gain for investors.”
NEW PYMNTS DATA: THE TAILORED SHOPPING EXPERIENCE STUDY – MAY 2022
About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are getting it right and where they need to up their game to deliver a customized shopping experience.