The executive questioned the inflationary phenomenon in the United States. He believes that Russell Okung was correct in requesting his salary as an athlete in BTC.
According to the founder of the Bitcoin startup ZAP, Jack Mallers, the people in the United States and around the world who use the US dollar are operating their lives at a loss. The executive believes that the inflationary phenomenon is affecting the wealth of citizens.
Before 2020 ended, Mallers pointedly said that the US fiat currency loses value every year. This is more evident today due to the deterioration of economies that the COVID-19 pandemic has caused.
“People in the United States and around the world are operating their lives at a loss due to the exponential inflation of assets. This is becoming increasingly evident due to the pandemic and what is happening with the US Federal Reserve, which needs to print money,” said the executive regarding the “aid” packages that high government officials have authorized.
He stated that people who support themselves on US dollars alone would be losing between 15% and 20% of the value of their money each year. This is due to the annualized inflation that is occurring in the country. He believes that citizens would gain an annual advantage against the US dollar if they migrate to Bitcoin and hold 100% of their positions.
The entrepreneur highlighted that Bitcoin is a scarce digital asset that people can use from any smartphone. He considers that the monetary future depends on the main cryptocurrency in the market.
Mallers explained that this would happen mainly because anyone can adopt it. He said that there would be two possible scenarios: those which are operating at a loss with the US dollar due to the decisions of the Federal Reserve and those which maintain their value by operating gains with Bitcoin.
Russell Okung’s Decision to Use Bitcoin
Jack Mallers also defended American NFL player Russell Okung’s decision to receive half of his salary as a Carolina Panthers player in Bitcoin. The football player said that he is “not going to risk [his] health or [his] body on the field and operate [his] life at a loss.” The athlete added that he “will put [his] money in a harder asset that protects [him] from inflation because of its scarcity,” by which he alluded to Bitcoin.
Okung made it known through ZAP that he would voluntarily trade up to USD 6.5 million of his salary with the Carolina Panthers for Bitcoin. Neither the team nor the league uses the cryptocurrency to pay the player.
An increasing number of commercial establishments in the United States are accepting other payment methods such as PayPal and Square, but not Bitcoin. In that regard, Mallers said that “all” people will be the next big step for Bitcoin. He also defended the decision of Michael Saylor, CEO of MicroStrategy, to invest part of the company’s treasury in Bitcoin.
The price of the pioneering cryptocurrency recently reached a new all-time high at USD 31,435 per unit. The various factors that may be influencing the price include the entry of a growing number of institutional investors and the SEC’s decision to sue Ripple for its XRP crypto asset, which is why traders are trading their tokens for Bitcoin.
By Alexander Salazar
