Should Your Salary be Paid in Bitcoin or Cryptocurrencies?
The world of cryptocurrencies is truly marvellous for some. It’s the land of new opportunities for those who want to make a quick buck. Even the institutional players are joining in the fun. Seeing the meteoric rise of Bitcoin and other altcoins, don’t you feel like getting into that too?
Let’s talk about Bitcoin. The king residing over all cryptocurrencies. If you haven’t kept some Bitcoin already, you might want to rethink your status as a crypto fan. So, Bitcoin. What if someone offered you Bitcoin or even other altcoins, for free? Hands up who would rather get fiat money.
Well, what if your boss offers you to receive your salary in Bitcoin? Now, would you take that leap of faith?
We all know total or at least significant cryptocurrency adoption is still a few good dreams away. Since its inception back in 2009 and even a decade later, the main issue for cryptocurrencies seem to be adoption. We’re not talking about implementation of blockchain technology into systems or infrastructures. Because that is going extremely well, believe me.
It’s more on the use of cryptocurrencies beyond a tool of trade or investment. In that, at least, cryptocurrencies have achieved popularity and everyone and their mother are in it for the crazy profits. And yet, it’s because of the fact that the cryptocurrency market is highly volatile, that crypto holders opt to HODL or trade in order to gain profit.
But of course, there are efforts to extend the use of cryptocurrencies beyond as a money-making tool. Currently, there are more than 2000 cryptocurrencies with various utilities and unique features to capture the heart of users. Additionally, we all know that the original purpose of cryptocurrency is to be an alternative payment method to fiat money.
So is it such a surprise to come up with the idea of salaries in cryptocurrencies? The world is changing with the advancement of technology, surely we have to start somewhere right. Of course, every idea has its pros and cons. So what are the pros and cons of crypto salaries?
Pros of crypto salaries
- You get free cryptocurrencies, obviously – Who doesn’t? Especially people who just started out with Bitcoin or cryptocurrencies and would prefer to be given rather than to buy
- The fact that profit is likely – Yes! Have you ever heard of gaining profits on your salary? It’s like receiving dividends for your deposit, only with your salary. This is the best opportunity for you to try your hand at trading. And even if you HODL, if the stars align and all that, your salary might grow two or three times its original number.
- Instant transaction and low fee – this is the high point of cryptocurrencies, actually. Employers paying in cryptocurrencies can effectively save on transaction costs as well as payment processing costs. On the other hand, employees will receive their salaries instantly without having to constantly refresh their bank accounts to check on their salaries.
- Increase awareness about cryptocurrencies and encourage broader adoption – especially for companies involved in blockchain technology or even IT. Walk the talk right? At least the staff would have a deeper understanding about the world they are working in.
- You have the option to either HODL or cash out your crypto holdings – isn’t this exciting? You can now choose to exchange your salary for fiat or hold it, depending on the market’s condition. It’s like a crash course in trading. After all, you have to get your experience somewhere right?
Cons of crypto salaries
- Risks of volatile prices – with the crypto market still largely unregulated and easily manipulated by external forces, and not to mention driven by sentiments, it is risky. If you were caught up in a bearish market, obviously you’d be on the losing side.
- Low usage – means that if you went out with your cryptocurrency, you’d probably have a hard time spending it. Not many merchants accept Bitcoin or other cryptocurrencies, yet anyway, and if you don’t know how to exchange your cryptocurrency, you’re definitely in trouble.
- No insurance or guarantee – especially if your cryptocurrency holdings are stolen, hacked or in some cases, you lost your private key or password. The law will not help you even if you cry 1 million litre of tears.
- Difficult to calculate income tax, EPF allocation, capital gains tax or other taxes
So what’s the verdict?
The pros and cons of crypto salaries seem balanced. In reality, it depends on how progressive your employers are to begin this initiative. Unless you work on your own, a freelancer or in a startup, you might just be better off buying cryptocurrencies.
But did you know that some companies actually do pay their employees in cryptocurrencies? For instance, Bitcoin Foundation gives employees a choice to receive their salaries in Bitcoin. Or Japan-based GMO Internet, where their employees can choose to receive a portion of their salaries in Bitcoin. Besides that, there are a few platforms for freelancers where you can get paid in Bitcoin, such as Earn and Working for Bitcoins.
On the other hand, Bitwage is a startup that facilitates employers in paying their employees in the form of cryptocurrencies. The company has already provided Bitcoin deposits since 2014 and now services more than 30,000 workers worldwide. So, put this in your company improvement review. Who knows, your bosses might just take you up in your idea.
All of these instances prove that it’s not impossible to build an ecosystem where workers are paid crypto salaries – fully or otherwise. You just need a complete ecosystem to get the cryptocurrencies to move around. And personally, I’m sure it won’t be long before crypto salaries are a thing, believe me.
In the meantime, why don’t we continue to educate ourselves with everything blockchain technology and cryptocurrencies? At least we will be prepared ahead of our peers when the time comes for cryptocurrencies to be acknowledged as a means of payment alongside cash, credit/debit cards, e-wallet and others.