When it comes to pushing mass adoption, the key hurdle is getting companies to start paying wages in Bitcoin – or any other crypto for that matter. In a Tweet, Kraken hit back at Peter Schiff who claims that people will refuse to accept a Bitcoin salary. Kraken highlighted that during April 2019, 250 salaries were paid in Bitcoin – that’s about 30% of its entire workforce. The crypto exchange than added,
by the way, the employee who took 100% bitcoin in 2012 retired in 2013.
We respect the quest for sound money but @PeterSchiff is wrong when he says “there is no way that people are going to work for salaries paid in bitcoin”. Kraken paid 250 salaries in bitcoin in April and more employees are opting for crypto every month. https://t.co/OZuh4gcbfw
— Kraken Exchange (@krakenfx) May 23, 2019
Laws Getting in the Way
As many employees around the world would love to get paid in Bitcoin, there are still a number of hurdles that we need to overcome. One of those is the law that requires employers to pay a portion of salaries in cash or check form. While this isn’t a law all around the globe, it still plays a huge part in a number of leading jurisdictions – including the United States.
Volatility Scaring People
While getting paid in Bitcoin is really awesome – the pay is in your account within 10 minutes as opposed to days later with a bank – the risk of volatility can weigh heavily on your mind. Imagine getting paid to your Bitcoin wallet, then during a meeting Bitcoin takes a huge tumble. Suddenly your wage packet is worth a lot less than when you went into that meeting. As markets spring back to life, we are seeing volatility return – with Bitcoin swinging between $7,000 and $8,000 very rapidly. If Bitcoin does surge, then your wage will go a long way, but is it a risk many people will be willing to take – we think not.
Kraken’s Missing Wages
Kraken might be paying 250 salaries in Bitcoin, there is still the matter of the salaries it’s refusing to pay. Jonathan Silverman – a former Trading Desk Manager at Kraken – is suing Kraken for a staggering $900,000 after the exchange allegedly refused to pay him. Silverman supposedly came to a deal with Jesse Powell – Kraken CEO – for commission and stock options, which Kraken never paid out. Silverman is suing Kraken for those missing funds. It’s unlikely that the courts will side with Silverman, as no contracts were signed with the commission and stock options added.
It’s great to see a huge crypto exchange like Kraken paying wages in Bitcoin, and we know there are thousands of other companies out there who are doing the same. While it can be scary getting paid in Bitcoin, there are ways to help protect your finances – such as quickly exchanging a portion to a stablecoin. As always, never trade more than you can afford to lose, so be careful when being paid in Bitcoin and do your best to avoid the pitfalls.
