Do you know that some businesses and companies pay salaries to their employees in cryptocurrencies? There are many such companies globally that pay regular salaries in digital currencies that are in trend. It is known as cash of the future as cryptocurrencies have finite supply but do you know in-depth about cryptocurrencies and bitcoin? Don’t you think why the employee should obtain a salary in cryptocurrency and not in cash?
Here in this article, you will learn about the basics of bitcoin, and we will figure out the benefits and detriments of getting paid in bitcoin. Some people trade oil, and for that, QProfit System is one of the best platforms that can help you trade oil profitably.
What is a cryptocurrency?
Cryptocurrency is a virtual digital currency that gets developed and managed using advanced encryption methods known as cryptography. Thus, the Cryptocurrency term got derived from the term “cryptography.” Though many cryptocurrencies are available in the market today, bitcoin is the only well-known one. Bitcoin is the first cryptocurrency developed in 2019, and the whitepaper of bitcoin describes it as a peer-to-peer monetary exchange system independent of central authorities.
Bitcoin and other cryptocurrencies are different from fiat currencies as these don’t get managed or issued by the government. No involvement of central banks run the digital currencies. Instead, the creation and management of bitcoin gets done by its network itself. The bitcoin design is public, and it has open-source code, which makes it easy for anyone to get involved in the bitcoin network and learn about the changes or updates that get made in the network.
As we read earlier, some companies pay their employees their salary in bitcoin and other trending cryptocurrencies, so let us know the benefits and detriments of getting paid in digital currencies.
Benefits and Detriments of Getting Paid in Cryptocurrencies
No geographical restrictions
Bitcoin is an international currency, and it allows its users to send and receive payments quickly without any restrictions. When employees get salaried in bitcoin, they can easily send it to their home or exchange it for their local currency anytime and from anywhere. Most employees choose to exchange their crypto payments for fiat currencies to benefit from the increased price of crypto tokens.
Not all employees work at offices as some are freelancers, and in such cases, employers located offshore can quickly pay freelancers or employees with bitcoin.
Easy to use
When employers pay their employees in crypto tokens, users don’t spend or exchange their coins immediately after receiving payments. But if employees choose to exchange their coins, they can easily do it from bitcoin exchanges as exchanges allow users to convert their crypto tokens to their local currencies. Employees can also shop with crypto tokens as many shopping websites accept crypto payments and even provide cashback and discounts to users.
High earning potential
The best thing about getting salaried in bitcoin is that employees can choose to cash out their salary when the price of cryptocurrencies increases instead of exchanging it. Thus, it will provide a handsome bonus to employees.
Low fees and high processing speed
Bitcoin is an independent currency which means no intermediaries intervene in between issuing or managing crypto tokens. It is the main reason it processes transactions faster and doesn’t charge high transaction fees, unlike financial institutions. Employees who work remotely can transfer funds to their homes quickly without even requiring high-paying fees.
Rise of volatile market
The market of cryptocurrencies is lucrative but is highly volatile as the term. Its value fluctuates a lot within a short span because no government regulates cryptocurrencies. Therefore, the volatility tends to increase, and it might be possible that the value of crypto tokens decreases after employees get their pay in bitcoin.
Tax on capital gains
Cryptocurrencies have experienced a significant increase in their value over past years, but it is essential to learn that the gains on capital are taxable. It means that users have to pay taxes on capital gains that they earned from cryptocurrencies. Therefore, it is best to hire an accountant that knows crypto taxation as they will prevent you from freaking out during tax season.