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Politicians' Salaries in Bitcoin Are Stable Despite Price Plunge, Peter Schiff Says, Here's Why

u.today 28 January 2022 14:01, UTC
Reading time: ~2 m

A major Bitcoin opponent who tweets about BTC more often than some of the biggest Bitcoin supporters, Peter Schiff, has taken to Twitter to explain how politicians and top athletes have insured themselves against losing money when receiving salaries in Bitcoin after its plunge.

"They lose only if they HODL"

The CEO of Euro Pacific Capital and founder of SchiffGold fund commented on the CNBC story about politicians and professional athletes agreeing to get their salaries in Bitcoin and losing as the Bitcoin price plunges.

However, gold bug Schiff is certain that what they get paid is fixed in USD and gets converted to Bitcoin only at the time of payment, hinting that they will most likely convert BTC back into dollars anyway.

The only way they will lose money, Schiff tweeted, is if they start hodling.

Today @CNBC aired a story about how much professional athletes and politicians who agreed to be paid salaries in #Bitcoin were losing from the price plunge. But their salaries are fixed in dollars and only converted to Bitcoin at the time of payment. They only lose if they #HODL!

— Peter Schiff (@PeterSchiff) January 27, 2022

As reported by U.Today, last year several NFL players agreed to get their salaries in the flagship cryptocurrency. Among them were Odell Beckham, Sean Culkin and several NBA players, including Andre Iguodala. In 2020, this step was first taken by another NFL star—Russell Okung.

In 2022, Christophe De Beukelaer, a Belgian member of parliament, announced he will take his salary in Bitcoin. He has been the first European politician to do that so far.

Schiff expects BTC flash crash once $30,000 is passed, but nobody's selling

Last weekend, when Bitcoin plunged to $36,500, Peter Schiff took to Twitter to share that he expects a BTC flash crash to happen should the price of the leading crypto drop below the $30,000 level.

A few days before that, he tweeted that once Bitcoin plunges below $30,000, it is likely to crash back to the $10,000 price mark.

Still, CEO of MicroStrategy Michael Saylor recently stated that the company does not plan to sell its Bitcoin holdings. According to the recent Q4 earnings report, Tesla e-car giant has also not gotten rid of the Bitcoin on its balance sheet and still holds the $1.26 billion worth of Bitcoin it acquired in early 2020.

The president of El Salvador, the first country that has adopted BTC as a means of payment, has even announced that his country has bought the dip—acquiring another 410 Bitcoins, paying approximately $15,000,000 for them.

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