Sponsorship Paid In Which Crypto?

Discussion in 'The Hornets' Nest - Watford Chat' started by Mr W, Jul 23, 2021.

  1. Mr W

    Mr W Academy Graduate

    So regardless of how you feel about a gambling company in the shirt and YES the logo is too big!
    Apparently the deal is 5m up front and paid in crypto. I think that's a great deal personally and great timing but I would love to know what they have paid in
    BTC or something more exotic?
    Something that WFC can stake?
    What do you think?

    COYH
     
  2. Moose

    Moose First Team Captain

    It is a gamble for a club with somewhat ropey finances.

    Whatever currency, it’s likely there will be a chance to make a mint as it rises and lose the lot when the bubble bursts. I’d be very surprised if we didn’t at some point **** it up royally.
     
  3. hornmeister

    hornmeister Tired

    It's a sponsor that has paid. If It's in potatoes It's better than some.
     
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  4. Mr W

    Mr W Academy Graduate

    Any investment is a calculated gamble of sorts even putting money into a traditional bank is. Crypto as an asset class is new but it has use case and is gaining adoption and awareness.

    You are right in the sense of it being a gamble for us do we..

    a) exchage it back to GBP, collect the 5m and it gets absorbed into the accounts

    b) hold it in a crypto currency for x months expecting it to appreciate BTC could well 3x between now and the end of the season others such as ETH could 10x
    (I know some people will call these numbers wishful thinking but they are actually Conservative and follow stock/flow models or other TA on the asset)

    Head says they will switch back to gbp and take the 5m and incorporate into the balance sheet as an income but I'm bullish about crypto for the next 8-10 months I'd love to see them hodl it and who knows 5m could become 15m or 50m

    COYH
     
  5. Mr W

    Mr W Academy Graduate

    Haha the newest sh1tcoin 'potato' get it before the rug pull


    COYH
     
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  6. Supertommymooney

    Supertommymooney Squad Player

    I'm keeping my eyes peeled for potatoes.
     
    wfcmoog and Mr W like this.
  7. Supertommymooney

    Supertommymooney Squad Player

    I only gamble for chips.
     
    Mr W likes this.
  8. GoingDown

    GoingDown "The Stability"

    It's not a bad time to be paid in Crypto. Doubt it'll tank much more and with Musk mentioning they'll accept it again soon, it'll go up soon.

    Not that the club should remotely hodl any of it. At all.
     
  9. carboy98

    carboy98 Reservist

    99.9% sure it will have been instantly converted to GBP and was just a PR exercise for the sponsor. But I do like the idea of Watford hodling £5m in BTC
     
  10. Jumbolina

    Jumbolina First Team

    Sell stadium and put money in Bitcoin, pork bellies and fine wine. Will treble value by end of season.
     
    luke_golden, UEA_Hornet and miked2006 like this.
  11. RW99

    RW99 Academy Graduate

    Dont tell your cardiologist about your plan - thats a lot of pork ! :D
     
    Jumbolina likes this.
  12. Johnny Todd Sings

    Johnny Todd Sings First Year Pro

    Everything I've read, including this thread, seems to be under the impression that it is an either/or scenario. Either the club had 5m in sterling or 5m in bitcoin. I would imagine that it is unlikely that the club would do that. They would spread the risk and have some in various crypto-currencies and some in various normal currencies, probably Sterling and Euros. Given how much they fly the team around some maybe in US$, too, to pay for aviation fuel or in oil futures.
    A business with the turnover of a Premier League club takes these things seriously. We have moved on from Baz and the safe key.
     
  13. Jumbolina

    Jumbolina First Team

    We have significant debt and large losses. I don’t think we are in the position to have holdings in crypto or oil futures. Bearing in mind the Zuniga and Gueye fiascos in our primary business it’s probably better that we don’t start punting around in crypto/derivatives. Has local council Icelandic investments in 2009 written all over it.
     
  14. kenbolka

    kenbolka Academy Graduate

    Convert half, hold and hedge half easy
     
  15. hornmeister

    hornmeister Tired

    Holding money when you owe money, especially if the value of your currency may tank is a risk I wouldn't take.

    Gamble with spare funds, fair enough.
     
  16. Burnsy

    Burnsy First Team

    It’s Andre Gray all over again.

    £5m yesterday, worthless today.
     
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  17. LeedsOrn

    LeedsOrn Reservist

    You’d imagine it was converted immediately into cash. Leventhal reported yesterday that the club were keen to be paid in full up front rather than throughout the season - presumably so they can apply the cash to the summer’s transfer spend. If they’re keen to realise cash now, then there’s not much use getting cryptocurrency and keeping illiquid is there?
     
  18. Burnsy

    Burnsy First Team

    The opposite side of the argument however is what’s the point in advertising it was paid in Crypto if it was cashed in immediately? £5m is £5m in that sense. Also, given how volatile Crypto is, seems a needless risk to have it in the accounts for any time at all if the thought process was to cash it in ASAP. Just ask for it in Sterling from the off no?

    Just pointless posturing really if that’s the case. ‘Look at us doing things differently - but not really.’
     
  19. Robert Peel

    Robert Peel Squad Player

    I don't understand any of this.

    Can someone explain (in language a 7 year old would understand):
    1. What is a cryptocurrency?
    2. Where do they come from and how are they legit?
    3. Can I say "I have £10m of my own PeelCoin cryptocurrency" and go and buy some property, cars, business etc. with it? If not, why not?
    Thanks in advance.
     
    Steve Leo Beleck likes this.
  20. LeedsOrn

    LeedsOrn Reservist

    I think it is largely marketing guff. But there are millions of cultish crypto people who might not see past it and start liking Watford.
     
  21. a19tgg

    a19tgg First Team

    It’s only a gamble if they held it in crypto.

    If they were being paid in BTC it’s been pretty stable recently (relatively speaking) so if they converted it straight away it’s all fairly irrelevant.

    One issue might be liquidity, with the volatility of crypto selling £5m worth wouldn't always be easy or instantaneous and fluctuations could come in to play.

    In reality I doubt the club even have an account with an exchange, and it’s hardly likely the sponsor just dumped £5m worth of crypto on them without them having a clue what to do with it.

    I’d imagine the reality is the sponsor did a conversion themselves to sell Bitcoin/whatever to buy £5m GBP, which was transferred to Watford’s account.

    That way technically they paid in crypto from a PR perspective, but Watford received GBP and were none the wiser.
     
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  22. wfcmoog

    wfcmoog Tinpot

    Crypto, in simple terms are digital currencies.

    You can buy it in any of thousand of online exchanges.

    Any crypto has a value, as long as there's a consensus between buyers and sellers of that coin, much the same as any fiat currency. The fact is any of the top cryptos actually do more and offer more security in many ways than pounds, dollars or euros and many are deflationary, rather than inflationary.

    since national currencies stopped being backed by gold, they're essentially worthless and based purely on faith - take a look at Zimbabwe or Venezuela for what happens when that faith collapses.

    You can make Peelcoin and it would be utterly worthless unless you can convince people that there was a purpose to it, and it solved a particular problem, although, having said that Dogecoin was a currency made up as a joke, sold for fractions of a penny and people hoarded it - this year it was worth as much as nearly 70 cents. That's a lot for something that people could buy thousands of for a dollar a couple of years ago. Of course - that's a true bubble, because Dogecoin solves no real life problem, other than making nerds laugh.
     
    Robert Peel likes this.
  23. Robert Peel

    Robert Peel Squad Player

    Thanks. My mind has an amazing ability to completely tune out of financial complexities. I don't even know what my mortgage is.

    The only bit I don't get is the purpose and particular problem... what's an example of that? Essentially it seems that someone has produced computer files (simplistic term I know) and said each one is worth £x, do you want to buy one? Is that right?
     
  24. WillisWasTheWorst

    WillisWasTheWorst Its making less grammar mistake's thats important

    Two questions:

    What "real life problem" do other cryptocurrencies solve that Dogecoin doesn't (and how do they differ)?

    Why do cryptocurrencies need mining to create them, causing damage by huge amounts of computer processing?
     
  25. wfcmoog

    wfcmoog Tinpot

    The problems are mainly around trust.

    Bitcoin is both a currency and a giant digital ledger, which means every transaction is recorded and can be checked. If someone buys something with bitcoin, nobody could then argue that they didn't pay.

    It also removes the needs for banks. Think about international bank transfers. Until recently, if I wanted to send 500 quid to a relative in Australia it would cost me 15 or 30 quid or something, then it would take about 5 days, during which time, the bank had my money and used it to earn interest, berore releasing it to my Cousin 5 days later.

    Now, i could send them a payment in crypto, it could arrive in seconds or minutes and cost me pennies.
     
  26. wfcmoog

    wfcmoog Tinpot

    I answered the first question in a very brief and incomplete manner just now. There are also specialist coins for other issues, eg for privacy or a project I'm invested in, which is about creating a completley decentralised internet, so Google, Facebook etc. Don't control all the content. Another about decentalised data storage, which means amazon doesn't dictate all the web storage.


    Mining is not needed for all coins, but where it is, the mining is actually a verification process. People use computing power to verify the transactions that have taken place (creating that public ledger I mentioned) and are rewarded with small amounts of that currency.

    As Bitcoin has got bigger, so mining has got harder and the rewards smaller. In 2010 you could mine whole bitcoins on a laptop. Now you need powerful, heavy energy consuming machines to mine just a tiny amount. That's one of the issues with bitcoin specifically and somwthing which is solved by other coins
     
    WillisWasTheWorst likes this.
  27. miked2006

    miked2006 Premiership Prediction League Proprietor

    I imagine we got paid a bit more by receiving the remuneration in crypto, because it endorses the product and because the sponsor doesn’t need to convert anything.

    I really hope that we instantly changed it into currency, or I’d doubt for the future of the club.
     
    CarlosKickaballs likes this.
  28. miked2006

    miked2006 Premiership Prediction League Proprietor

    It’s probably worth adding that blockchain is the technology that cryptocurrencies employ. Blockchain is very clever, as it allows more effective transfer and audit trails, whilst cutting out the middlemen/ fees.

    It will almost certainly be the future, and a vast improvement on the archaic systems we’ve got today. Blockchain is clearly a space ripe for innovation, and a very small number of companies in the space will become massive by out competing existing companies. DeFi and smart contracts especially make a huge amount of sense to me.

    Given the next to zero barrier to entry, investing in cryptocurrencies however tends to be pure speculation. Essentially a very risky (and now pretty expensive) bet that people will prefer its predominantly anti-inflationary characteristics over other assets like gold, whilst being happy to forego the security that comes with having money backed up/ insured by a central bank.

    I also don’t really see Bitcoin specifically as the future for a number of reasons:

    - It is incredibly inefficient with transactions, and unnecessarily bad for the environment

    - Whilst it is supposed to not be impacted by inflation, the price massively drops in value whenever inflation (and thus interest rate) rises are mentioned, suggesting that it’s price is more closely correlated with cheap money, speculation and poor returns elsewhere.

    - Money is meant to be very stable, to ensure the buyer and the seller know that they aren’t going to lose money. The fact the value still jumps 5-10% after a tweet from Musk shows how far away it is from being widely adopted.

    - The central banks are going to do everything in their power to stop it succeed, as they’d be self harming their ability to respond to crises. They will release central bank coins, and regulate away competing currencies.

    - It doesn’t fully reduce the need for banks. Banks use accounting to double-utilise money you place in them through deposits. This overall makes people wealthier (even if this is predominantly through increasing asset prices). Blockchain would reduce wealth creation here, as each block of money should only be allowed to be employed in one place at a time.
     
  29. Robert Peel

    Robert Peel Squad Player

    [​IMG]
     
  30. brinnyboy1985

    brinnyboy1985 First Year Pro

    This.

    For those that think crypto is a cult, it isn’t and it’s not as complicated as it seems.

    If you like to take a punt / gamble then there’s good money to be made but you have to accept huge volatility so it’s not for the faint hearted.
     
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  31. IRB

    IRB THe artist formally know as ImRonBurgundy?

    I very much doubt we’ve actually been paid in crypto, most likely a publicity stunt

    edit - see a19’s post above ^
     
  32. cyaninternetdog

    cyaninternetdog Forum Hippie

    Probably been paid in Doge.
     
  33. Moose

    Moose First Team Captain

    This may be correct, but the Pozzos have shown themselves to be gamblers who like a wide range of small to medium punts. I would be surprised, given the previous link with Bitcoin, that it was not, at least in part, true.

    They have the belief of rich people that they can beat the system, which to an extent they can, because they are already rich.
     

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