Cleveland Cavaliers guard Matthew Dellavedova’s regular occupation is as a basketball player, but in a new article, he’s offering reasons for making an investment in the controversial currency bitcoin.
Dellavedova notes that his first investment in Bitcoin came in January 2018 and then looked at it again last year in the midst of the economic turmoil caused by COVID-19.
In making his case for bitcoin, Dellavedova compares it to gold, which has grown in value over the past decades as a hedge against inflation.
“For market size reference, all of the gold in the world has an estimated value of around 11.5 Trillion US dollars (40% of Gold is for Financial use) as the World’s reserve asset (store of value) for 1000s of years,” wrote Dellavedova. “Bitcoin is about to cross 1 Trillion US dollars and has been around for 12 years. Most countries around the world hold gold in their reserve assets, I think they will eventually HODL (bitcoin slang for hold) bitcoin as well, if they don’t already.”
Noting that the circulation of bitcoin will stop in 2140, Dellavedova looks at different strategies for investing in the limited supply available.
Dellavedova points out that most people who have invested in the currency are holding onto it in the expectation that the value will increase in the years ahead.
Over the course of his lengthy article, Dellavedova makes a concerted effort to point out that he’s not a financial expert and that any investor should do his or her own research.
Dellavedova’s exhaustive endorsement of Bitcoin comes with links to articles that explore different strategies that explain the reasons for this type of investment.
While he’s yet to play this season because of lingering concussion issues, Dellavedova has a contract that’s paying him $2.17 million this season. In the four previous seasons, he was making $9.6 million per year, an income that allows for some risk that the average person might not want to try.
Dellavedova is continuing to take small steps back to the court, which has included working out and watching the Cavaliers practice.
Whether or not he’s able to return to the court, Dellavedova is clearly endorsing bitcoin as the currency of the future.
“Whenever I hear someone say Bitcoin is too risky or a gamble, (THERE IS RISK TO EVERYTHING), I ask them if they know that the current market cap (total value) of Bitcoin is more than the current market cap (total value) of Facebook,” Dellavedova wrote.
Dellavedova’s popularity among the Cavaliers’ fan base has primarily been focused on his basketball ability, so it remains to be seen if any of those fans are willing to put their own money into Bitcoin based on the veteran’s analysis.