Have you ever thought about taking the plunge and asking your employer to pay you in Bitcoin? Well, it’s definitely something you should consider doing thanks to the huge raft of advantages it offers. While it might seem scary at first, after your first couple of paychecks you will be handling your crypto finances like a pro – we promise.
Let’s take a peek at the pros and cons of accepting your wage in Bitcoin or any other cryptocurrency!
Payments Are Super-Fast
One of the biggest reasons people have started accepting their wages in crypto is the fact that payments clear very quickly. Bitcoin’s average transaction time is 10 minutes, imagine getting your wage in your hands 10 minutes after your boss sends out the salaries – pretty impressive, right? Not only that, you can then transfer your Bitcoin to other accounts to pay the various bills you have in a more time efficient manner – not to mention the savings on transfers.
It’s Really Easy to Do
If you’re new to the crypto space, you might be thinking that it’s a cool idea, but it’s way too complicated to actually jump into. Well, if you’re feeling that way let us put your mind to rest, as it’s a lot simpler than you think. Once you take the plunge, you’re paid in 10 minutes to your very own crypto wallet, then it’s up to you what you do next. If you don’t live in a crypto-friendly part of the world, you might need to get your hands on fiat pretty quickly, but that’s okay. You can either send the crypto to a platform that has a bank card – like Wirex or Coinbase – and then pull out the cash, or you can then send it back to your bank. If you choose to send it back to your bank, your money will likely be stuck for 5 working days – making getting paid in Bitcoin not really worth it.
All you have to do to get paid in Bitcoin is give your boss your Bitcoin wallet address and wait for the transaction to be confirmed. After that, you can have the fiat cash in under half an hour, leaving you with more time to have fun down the pub with your mates.
The Volatility Can Bite You
Unfortunately, accepting your wage in Bitcoin isn’t all peaches and cream. Let’s say you send the Bitcoin to your wallet and you only have access to it at home. During the period between getting paid and getting home, Bitcoin could have tanked massively – making your wage worth a lot less than when you got paid. This is a huge issue that plays on the minds of many people who take the plunge.
That being said, just as Bitcoin can fall in value, it can also rise in value. Imagine getting home to find out your wage is now worth 10% more than when you got paid – hello quick pay rise. The volatility of crypto markets can be both a curse and a blessing at the same time, so be wary. It’s best to send your wage to a crypto wallet on your mobile phone so that you can make instant trades when you’re paid to guarantee certain funds – especially if you have bills to pay.
You’re Not Alone
If you’re still not convinced that you should be paid in BTC, there is one other huge factor that you need to consider – other people are doing it. There are thousands of people getting paid in Bitcoin, meaning if you’re stuck or confused you can ask questions and receive helpful answers. Recently, Kraken announced that it pays more than 250 salaries in Bitcoin – that’s around 30% of its entire workforce. There are so many people working for crypto, whether they’re freelancers, full-time employees, crypto miners, or even crypto traders taking their profits off the table – Bitcoin wages are a thing and they’re here to stay.
It Helps Mass Adoption
Do you want to be part of the huge crowd of people pushing mass adoption? Accepting your wage in BTC is one of the biggest ways you can help the movement – we’re not kidding. Francis Pouliot – Bylls CEO – pointed out a very interesting metric. People that buy Bitcoin tend to be investors, looking to hold BTC, before trading it back to fiat and spending the related earnings. Whereas people who get paid in Bitcoin are actually using BTC for goods and services. This means that people who get paid in Bitcoin are actually more likely to help develop mass adoption rather than simply trading away their savings.
The Taxes Can Be Tricky
If you do take the plunge and request BTC payments, you’re going to need to get yourself a good accountant that has crypto experience – or take a short course yourself. Most employers who pay in Bitcoin won’t automatically deduct tax, national insurance, and all the other bits and pieces. This leaves it up to you to calculate and pay, otherwise you could end up with a huge bill from the tax man come tax time.
Thankfully, there are a range of apps out there that can help you with this, but it’s still best to get help from a professional – just to be safe. Some countries are introducing their own crypto tax rules, so it’s well worth checking these out to see if you will be better or worse off than accepting fiat.
Let’s quickly break down the points we’ve addressed above so you can get a quick and easy overview of whether getting paid in Bitcoin is the right move for your circumstances.
- Get paid quicker than with fiat
- Help drive forward mass adoption
- It’s the way a lot of industries are going, making it a good time to get ahead
- The volatility can make your wage worth a lot more in a matter of minutes
- Paying bills where crypto payments aren’t accepted can be tricky and time-consuming
- Volatility can wipe out a huge chunk of your wages if markets fall
- Calculating and deducting taxes isn’t usually done automatically
- Some employers still push back against paying wages in BTC
Getting paid in Bitcoin is one of the scariest things you will do financially, but after you have done it a few times and gotten used to the drill, you will be more confident than ever before in the process. If you think Bitcoin and cryptocurrencies are the future, it’s well worth looking into getting paid in Bitcoin. Should you need any advice, tips, or tricks, feel free to reach out to us in the comments below and we will do our best to help!