Receiving Salary When Bitcoin Drops, New York Mayor Doesn't Regret It, Here's Why!

Eric Adams has no regrets about receiving a salary when the Bitcoin price plummeted last Friday. (photo: doc. twitter)

JAKARTA – Bitcoin (BTC) is New York's brainchild for Eric Adams, a crypto advocate currently serving as the 110th mayor of New York City. He received his first paycheck in Bitcoin on Friday, January 21, during which day there was some epic price action that left many bitcoin investors at a loss. But Adams said he didn't regret it.

Bitcoin price has dived sharply from Friday's high of 41.000 to 35.000 by Friday afternoon, meaning Adams has effectively lost 15% of his first salary.

In light of the plunging price action, a CNN interviewer asked Sunday, "How much money did you lose, and do you regret it?"

The recently appointed mayor put the question aside, instead highlighting Bitcoin technology while making comparisons with investing in the S&P 500.

“Just like when I invest in the stock market; we saw a drastic decline over 2018 and other times. The purpose of Bitcoin is to send a message that New York City is open to technology. We want to see a plethora of new technologies in New York City and encourage our younger generation to get involved in this emerging new market,” said Adamas as quoted by Cointelegraph.

He concluded that he was passionate about bringing young people into space "who historically have been denied access to this new technology."

Adams promised to receive his first three salaries in Bitcoin, or USD 97.000 per three months. In answer to the interviewer's question, speculators can assume that he lost about 5.000 dollars in par last Friday. That assumes he is paid around 32.333 per month.

It is important to note that due to United States Department of Labor laws, payments are first issued in fiat as US dollars and then converted into digital currency on crypto exchange Coinbase.

While the mayor's salary cue is a promising sign for the Big Apple, crypto regulations in New York are very strict by American standards. Crypto exchange Gemini says that the financial center has “the most comprehensive and detailed crypto regulation in the country.”

The mayor of the busiest city in the US has clearly cut his job. But as the old saying goes, “if Bitcoin can get here, Bitcoin can be anywhere.”

A number of other public figures have now also taken their salaries in crypto over the past 12 months, with potentially detrimental consequences. Los Angeles Rams player Odell Beckham Jr announced in November that he would receive his salary for the 2021 season in Bitcoins, worth about $750.000 at the time of payment. If he hasn't sold, the coin is currently worth around $400.000 at the moment, regardless of his tax liability.