Benefits of Cryptocurrency: Pros and Cons of Cryptocurrency Wages

Author: Horace B.
Date: 
January 22, 2019
Read time: 
6 minutes

When it comes to the collective benefits of cryptocurrency, the divide between enthusiasts and skeptics takes the spotlight. The start of crypto acceptance consisted of a few not so well known online retailers adding Bitcoin as a payment option. Quickly, early adopting business and consumers were intrigued and Google search histories were crowded with terms like ‘how to pay with Bitcoin’.

When it comes to the collective benefits of cryptocurrency, the divide between enthusiasts and skeptics takes the spotlight. The start of crypto acceptance consisted of a few not so well known online retailers adding Bitcoin as a payment option. Quickly, early adopting business and consumers were intrigued and Google search histories were crowded with terms like ‘how to pay with Bitcoin’.

Pros of Cryptocurrency as Wages

Buying items with cryptocurrency as a consumer is one thing, but how about getting paid with it? Receiving your weekly or monthly wage is arguably the most basic financial event of your professional life. Many sites, specifically those targeting freelancers are turning to wages available in cryptocurrencies such as Bitcoin or Ethereum.

As a result of the uplifting demand for Bitcoin payments during the initial bull run in 2017 and 2018, thousands of freelancers have placed crypto payments into their basket of incentives during a job hunt. But what are the benefits of cryptocurrency as wages?

Here are a few to get your gears moving:

  1. Incentive to invest
  2. A growing range of services accepting cryptocurrencies as payment
  3. Near instant payments, regardless of location
  4. Anonymity and privacy

1. Incentive to Invest

Getting paid in cryptocurrency works towards a self-fulfilling prophecy we all want - profits. If more people receive cryptocurrency as payment for their work, then the chances are they will invest in other cryptocurrencies and become part of the growing community. Alternatively, workers will become more investment minded and instead of instantly spending their paycheck’s on Amazon products, perhaps they will save and hold their BItcoin for their future.
 

2. New Services

Along with the notion of a growing community, comes more services. Some websites offer discounts to users who purchase goods using cryptocurrency, or services (which are generally crypto specific) that accept ONLY cryptocurrency and not fiat as payment. If cryptocurrency continues to be used by merchants across the globe, especially on the internet, then it is very likely that those with cryptocurrency will have an advantage, since they are generally faster and cheaper to use than alternative methods.

Source: coinmap.org

3. Instant Payments

Well renowned crypto thought-leader Andreas Antonopoulos, and others, have spoken at length about their vision for the future of payroll using cryptocurrencies. Since cryptocurrencies transactions are nearly instantly, it is agreed upon that we will one day see a time where employees are paid by the second, in real time, for their work. This way money is never owed to the employee and everything is settled in real time.
 

4. Personal Privacy

Cryptocurrencies are meant to emulate digital cash. Cash is physical and anonymous, but when trying to replicate the advantages of physical cash to the digital world, we have learned it is not so easy, which is partially why cryptocurrencies seem so valuable. For example, freelancers can work for various projects at a time, get paid in crypto, and report their earnings with their accountant to pay as little in taxes as they can, while of course keeping things legal. People do this in the cash business, reporting income and using business write-offs to save on taxes. Lastly, at a higher level, your income should be your income and not visible by government or other employers - it is always in your best interest to keep your income private from these entities.

While there are many upsides to getting paid with Bitcoin, I promised I wasn’t going to sugarcoat this, here are a few cons.

Alongside the benefits of cryptocurrency, enjoying the perks of being your own boss and acquiring a high degree of personal freedom is second to none.

Cons of Accepting Cryptocurrency Payments from Your Employer

Benefits never come without their downsides and this is exactly the same when figuring out how to pay with Bitcoin. Yes, there are innumerable upsides, but depending on your personal needs and lifestyle, those may be outweighed by a few nasty negatives creeping up in an unexpected blindspot.

Here are a few downsides to accepting cryptocurrency payments as a freelancer or an employee:

  1. May take time to convert to FIAT currencies
  2. Difficult Legally
  3. Difficulty Finding a Merchant

1. Timely Conversions to Fiat

Depending on how you wish to convert your crypto to FIAT, this can take a few days. For example, Coinbase being one of the largest crypto to fiat brokers, has an onboarding process for new users. If it is your first time using Coinbase, it can take you a couple of days to create an account and verify your identity. Then another few days to hook up your bank account. Once this is complete, transfers generally take 3-5 business days.
 

2. Difficult Legally

If you are applying for a mortgage or performing any KYC process, then it can be a bit more challenging to prove your income as compared to a typical stub. This is similar to cash businesses but applies to crypto as well. Be sure you log your work and income clearly.
 

3. Difficulty Finding a Merchant

Your local grocery store probably does not accept crypto. There may be some merchants that require you to pay with FIAT, and unfortunately, you have no choice. If you are getting paid in cryptocurrency, then be sure to save some FIAT for times like this.

 

How To Get Jobs That Pay In Bitcoin

Surely by now, you have an individual opinion whether you are in a position to reap the benefits of cryptocurrency payments. Whether you want to go down that road or not, it’s beneficial to know which platforms you can turn to in the event of craving a Bitcoin paycheck. Luckily, there are dozens of established as well as private platforms offering payments in cryptocurrency for various jobs.

Freelancing is rapidly growing with the majority of the United States workforce predicted to be freelancing by 2020 - a staggeringly fast growth statistic.

Source: levels.io
 

Where can you find jobs which credit your chosen account in your most valued cryptocurrency? Here are a few:

The likes of xbtfreelancer.com, cryptogrind.com, and coinality.com have become popular platforms where writers, editors, front and back-end developers search for both temporary and permanent opportunities alike. The beauty of this, of course, is the additional benefits of being a remote freelancer. Alongside the benefits of cryptocurrency, enjoying the perks of being your own boss and acquiring a high degree of personal freedom is second to none.

 

Other Means of Passive Income - Investing in Cryptocurrencies

By all means, this is not passive income and requires many grueling hours of studying and work. If you are one of the lucky few who happens to have a spare $50 USD sitting there every month or even every 3 months, investing may just be the way to go.

Earning while doing nothing is a difficult concept to grasp, often seeming unrealistic but very much doable. We have created an easy-to-understand investment course for those wanting to learn about making the best use of their cryptocurrencies, alongside a general understanding of the industry.

You might already know how to pay with cryptocurrency and what else you can do with it, but there is more. If passive income sounds like something you’d enjoy the fruits of, start our investing course today and start with incremental investments at a comfortable pace to build your passive income stream. Don’t ignore the obvious benefits of cryptocurrency at the expense of ten short minutes a day.

Posted by Horace B.

Writer and entrepreneur with an on-going interest in developing technologies. Horace has run operations of multi-million dollar online companies and has worked with cryptocurrencies for 4 years.

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