“I do think Bitcoin is the first encrypted money that has the potential to do something like change the world,” said co-founder of PayPal, Peter Thiel.
And he was absolutely correct.
When it comes to finance and investments, cryptocurrencies have been a hot topic for years. Due to recent job-related issues, digital coins have become the talk of the town. Have you heard that the mayors of Miami and New York City have received their first paychecks in cryptocurrency? Or two football players, Aaron Rodgers and Russell Okung, who take part of their salary in Bitcoin?
If that’s the case, a new salary trend shouldn’t come as a surprise. However, if this is the case, Zety has prepared a study on employees receiving their pay and bonuses in cryptocurrency.
Cryptocurrency Status
According to Pew Research Center, 16% of Americans have personally invested in, traded, or used cryptocurrency as of 2021. The New York Digital Investment Group added to this data by reporting that 22% of adults owned Bitcoin in the same year.
When you consider that we’re talking about over 40 million Americans, a percentage of around 20% may seem insignificant. This year, the number of people interested in crypto is undoubtedly much higher.
With that in mind and all the buzz generated by people like Elon Musk, it’s no surprise that people are interested in the crypto market.
As the Zety study demonstrated, they do. Almost everyone (99%) understands what cryptocurrencies are. They are most familiar with Bitcoin (97%) and Ethereum (94%) respectively (86 percent ). People also understand what NFTs, or non-fungible tokens, are (90 percent ).
Given that employees are familiar with the concept of cryptocurrencies and are actively involved in the market, it’s not surprising that the idea of being paid in digital coins has arisen.
Salary in the Digital Age
It is legal to receive salary or bonuses in Bitcoin, Ethereum, or other digital coins. This isn’t to say that such a possibility isn’t appealing.
73 percent of respondents think getting paid in cryptocurrency is a good or very good idea. This means that 7 out of 10 employees may be willing to accept crypto transfers from their place of business. However, upon further investigation, the problem appears to be more complicated, as follows:
- 40% would prefer to be paid in both traditional and cryptocurrencies.
- 32 percent prefer to be paid entirely in traditional currency.
- The majority of respondents (21%) would prefer to receive all payments from their employers in cryptocurrency.
Nonetheless, the data paints a relatively upbeat picture of employee attitudes toward cryptocurrency pay.
Furthermore, 75% said they had at least once received a salary or bonus in digital coins. It’s worth noting that their employer didn’t necessarily send them a direct crypto transfer. It’s also acceptable to exchange all or part of a paycheck for digital coins.
Where does this come from, though?
Let Richard Branson, the Virgin Group’s founder, explain it to us. He once said, “It’s been a long time since I’ve said anything.”
“There’s a big industry around Bitcoin— People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too.”
This profit-boosting volatility appears to be quite appealing. Why? The value of crypto increased for 98 percent of those who received compensation in the form of cryptocurrency.
Data that makes you want to invest? Not until we have a complete list of all crypto benefits and drawbacks.
Pros and Cons of Cryptocurrency
Leon Louw, a two-time Nobel Peace Prize nominee, said:
“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.”
When it comes to getting a salary or bonus in crypto, knowing all of the benefits and drawbacks is essential. The following list is insufficient to fully explore the topic of cryptocurrencies. It takes weeks of research and practice to achieve some level of expertise. However, some basic advantages and disadvantages can provide you with a basic understanding of what cryptocurrencies entail.
People mention the following as among the top five crypto strengths:
- investment opportunities (34%)
- the immediacy of transactions (31%)
- no fees for international transactions (28%)
- bypassing the bank (24%)
- diversification of income (23%)
On the other hand, the following are the top five most commonly mentioned disadvantages:
- unstable exchange rate (28%)
- vulnerability to hacking attacks (26%)
- the complexity of taxes in terms of crypto (21%)
- no fraud protection (21%)
- legal issues (20%)
It’s not a complete picture, but it does highlight some factors to consider when buying, investing in, or trading Crypto. And they’re certainly worth knowing if the idea of being paid in cryptocurrency appeals to you.
Employees Should Think About
Is the above information relevant to employers? Indeed. It’s worthwhile to review the data from the same study once more.
74% of respondents said they would be more likely to work for a company that paid salaries in cryptocurrency. 71 percent, on the other hand, would prefer to work for a company that paid bonuses in cryptocurrency.
The conclusion is straightforward. Employers who are open to crypto are seen as more appealing. However, the cryptocurrency payout should be a one-time benefit that occurs in conjunction with a sports or medical package. Offering only crypto payouts is more abstract than appealing.
When asked if they would quit if their employer only paid them in cryptocurrency, 69 percent said yes.
Is it a fad or the future?
Cryptocurrencies have already proven to be a quick and easy way to make money as well as a quick and easy way to lose money.
The future of cryptocurrency payouts and bonuses will undoubtedly be influenced by market regulation. People who want to promote cryptocurrency as a means of payment will also have a say.
However, don’t expect people to forget about this trend anytime soon. If the proper legal and tax regulations were in place, 86 percent of survey respondents would prefer to be paid in cryptocurrency.
At the same time, 81 percent believe that in the future, more people will want to be paid in cryptocurrency.
What is it going to be? So, only time will tell.
Learn more from Crypto and read How Your Small Business Can Accept Any Form of Digital Payment.
