Is Crypto As Salary A Good Option?

The world of cryptocurrencies and digital finance is exploding and making its mark in various domains. We are able to see its impact like never before. The underlying technology of blockchain has revolutionized the way a normal human was approaching finances, trading, and investing. Although Bitcoin and other cryptocurrencies have gained acceptance and are even legal in some countries, people are still skeptical about cryptocurrencies when it comes to salary payments Let us understand if crypto as a salary is a good option or not.

TABLE OF CONTENTS​

• What Is Your Method Of Getting Your Paycheck?​
• Benefits of Cryptocurrency as Salary.
• Drawbacks of Cryptocurrency as Salary.
• Crypto as Salary or Not?
• Related Articles

What Is Your Method Of Getting Your Paycheck?

It would be either cash or digitally through your financial institutions which are banks in this case. The money gets deposited in your bank account in fiat currency which would only be affected by one aspect – inflation. Despite being widely accepted for use cases such as trading and investing, cryptocurrency is the least explored method of payment for salaried employees.

Benefits Of Cryptocurrency As Salary

1. Quick Transactions

One major advantage would be the kind of quick transfers one can make using cryptocurrencies. Unlike traditional bank systems, where the transactions can take hours, weeks, or even days to process, we can have a cryptocurrency transaction within a few seconds. The amount would be reflected in your cryptocurrency wallet way too faster as compared to other payment gateways. Moreover, additional convenience would be ensured with such quick transactions for people who are in need of paying bills.

2. Transparent Transactions

This is something which comes as an obvious fact. Blockchain has been the basis of decentralization and creating a platform that allows us to backtrack everything. This would come in handy to settle disputes or even not let a dispute arise in the first place. With such transparency, the transactions and payments would be seamless.

3. Accessibility

The ease of accessibility is one major reason to opt for this. Any cryptocurrency payment would require only a smartphone with basic functionality. It is simply more easy and convenient as compared to traditional banking services.

4. Low Transaction Fees

When any cryptocurrency is transferred, the transaction fee is quite low as compared to other modes of payment for fiat currencies. It can be a blessing for people into regular international transactions as they would be relieved of hefty transaction fees. Moreover, it would benefit international travelers or freelancers working with international clients. The payment of their fees in cryptocurrency would ensure minimal transaction fees at both ends.

As nothing is ever completely risk-free or fully advantageous, cryptocurrencies as salary payments also attract a few situations which may not be beneficial at all. Let’s understand a few pointers regarding how a cryptocurrency payment becomes the least favored by employees.

Drawbacks Of Cryptocurrency As Salary

1. Volatility

I guess this would be the most worrisome drawback which no one can tackle as of now. Cryptocurrencies are still behind fiat currencies when it comes to acceptance and usage. The value of such cryptocurrencies would fall and rise within minutes. Imagine getting a $5000 crypto payment only to see that the value of the coin dropped to $3000 the next morning. This wouldn’t help you get away with pending bills.

2. Regulations

There is still a larger population processing what is happening in the world of blockchain and cryptocurrencies. Most of the countries are still not regulating this digital currency method to even a small extent. This makes it a little doubtful whether you fully accept your salary in cryptocurrencies or not.

3. Taxes

The unavoidable face of taxes is still popping up when it comes to cryptocurrencies. Although we have no regulations for cryptocurrency as of now, it does not allow one to be free from taxes. People would be needing to pay their taxes in all cases. Moreover, in the coming years, as the crypto market will reach every smartphone, we can never know the tax slabs it invites!

Crypto As Salary Or Not?

Let’s be honest with each other. The world of crypto is still young and will be maturing in the coming years. The main course of action preferred by their employees would be fiat currencies only for some years to come. Still, there are companies willing to offer a certain payment in cryptocurrency and the remaining in fiat. Not only bitcoin but other cryptocurrencies are also winning big in the market cap race. You may read a basic analysis of other cryptocurrencies here that are surely going to be in the salary transactions along with Bitcoin. More and more discussion, productive ideas related to the world of crypto would surely allow us to normalize salaries in crypto. That day is not far from where every other transaction is in crypto!

Related Articles