The pros and cons of monthly income in cryptocurrency.
Whether or not to accept a salary in bitcoins? Even the loyal supporters of the cryptocurrency will think over the answer to this question.
Well, maybe the most fanatical would have unhesitatingly said „Yes.“ But a lot of cryptoendoliths around the world still would not risk it. So, why not?
First, the calculation of the taxes (not to mention the tax debt) on the bitcoin — is a nightmare, especially as in most countries, including in Russia, the status of the cryptocurrency is still not defined. Accept it not all over the world, and in some places it is prohibited.
Co-founder and head of platform listing of cryptocurrencies CoinSchedule Alex Buelow says: „Bitcoin is all over the place. For everything you need office stationery, office equipment, computers — will have to pay Fiat“.
Again, there is the question of volatility. A couple of days off, and then the week of the catastrophic fall. Although why not get your dose of adrenaline? To cheer up, so to speak.
But if you don’t live in a country where the store around the corner instead of a purse you have to take a suitcase of money, use bitcoin as a stable alternative to conventional currency can be a very risky undertaking.
So, would you agree to a salary in bitcoins? Tell what you need to remember, once you decide on this adventure.
Why settle for a salary in bitcoins
If you have no urgent need to instant access to their revenues, you calmly accept the fact that the market is at any moment possible as the rise and fall, and you don’t mind being among the pioneers, then why not agree on a salary in bitcoins.
„In 2013, I was given a salary in bitcoins, and it was the best financial decision!“ — seriously, and with enthusiasm says the American comedian Dan Nainan.
Of course, to get bitcoins for a few hundred dollars five years ago and to calculate what astronomical sum they have become today, is not a joke, the result is impressive.
„Ultimately, it became the highest-paid show in which I ever participated,“ says Nainan. Here’s how. Even with a huge increase to nearly $20,000 and a subsequent sharp fall, Dan did get a huge profit.
But this does not mean that you will be so lucky.
Despite the fact that the bitcoin’s price is harder to predict than the weather, Chris Castiglione says: „I am a Professor at Columbia University, where I lecture on the blockchain. I also teach a course called „One month in bitcoin and ether“. I know I’d be glad salary in bitcoins — absolutely convinced that bitcoin will be the currency of the future.“
Victoria Griesdorn Manager, operations Cryptocades, gives good advice: „If I decided I wanted to get the entire salary or part of it in bitcoin, I would first find out whether it is legal in the country where I live.“
In Russia the status of bitcoin and other cryptocurrencies have not yet been determined. So if you live in Russia, with wages in bitcoins will have to wait.
How much money you are willing to lose
Bitcoin would be too expensive if you chose to convert it to Fiat currency. So, you need to ask yourself: how much money you are willing to lose and how much you need quick access to salaries?
Griesdorn says: „I would also think, which part of the wages can afford to lose. Cryptocurrency is a relatively new financial instrument and the market has experienced significant volatility. Thus, cryptocurrencies should be considered to be associated with a high risk (to a greater extent than standard financial instruments such as stocks, bonds, and securities)“.
Tai Smith — co-founder Crypico, freelance platform, where users can pay for services and receive remuneration in any cryptocurrency also advises to proceed with caution.
When asked about the suitability of bitcoin as salary currency, he replied: „Cryptomonadales still too high to accept any stable payments. In General, the payment cryptocurrency is of course a risk, but if you are tolerant enough to it, then open up incredible perspectives that, in my opinion, outweigh all the disadvantages. Although I would not recommend the cryptocurrency as the only way to get wages at the current stage of their development“.
Don’t put all your eggs in one basket
The main advice from knowledgeable people — not putting all your eggs in one basket. As in the case with any investment and other financial decisions, it is wise not to keep all sources in one place. Banks go bankrupt, bitcoin exchange hacked, and even stuffed with cash mattress you will fail, if the house catches fire.
„I am responsible for the development and filling of the site for crypto startup CoinCircle, says chance Abbott, and I would not want to receive bitcoins as payment. High fees for transactions, the lowest rate confirmation and tax confusion under each transaction, which turns the tax on capital gains — this is enough for refusal. At the moment I prefer to receive income in the Fiat and after the fact decide what percentage to invest in cryptocurrency“.
Co-founder of OpenWater Tim Spell pays bonuses to employees in bitcoins, but advises caution. „To some it may seem that if the employer pays in bitcoin — it’s just a fairy tale. The reality is that living exclusively by bitcoin, it would be enormously inconvenient. It is not excluded that in the near future the day will come when bitcoin will become a universal currency, but today is the best option for employees to allocate a certain amount of earned Fiat to purchase bitcoins after taxes“.
What do you think about the salary in bitcoin experts from Russia
We went to the famous cryptoexpert with a request to answer the question:
Would you agree to get paid in bitcoin or another cryptocurrency (and why)?
Artem Deev, senior analyst at Amarkets:
„Rather no than Yes. The fact that bitcoin is extremely volatile in nature. Of course, its purchasing power, as well as to liquidity, no question, but his stable superlatively. Financial reward, which in the end of the month can suddenly be halved — not the best motivation for work. Of course, the situation may be different when the course, for example, not falling, but rising. But this is more like a full-fledged trading with your personal finances. In my opinion the salary is something that should be 100% predictable, stable and reliable“.
Evgeny Gordeev, the founder of the DeCenter (@DeCenter)
„My answer is Yes, of course! But I never in my life did not work for hire. Cryptocurrencies will rise in price, this is an obvious trend. Therefore, receiving full or partial salary in bitcoins or the air can cool earn for your future comfortable existence“.