It seems of late that cryptocurrencies are making the news for the wrong reasons. From an all-time high of nearly $67,000 per bitcoin in November of 2021, the most well-known crypto dropped to $35,000 almost overnight this past January. To put that into perspective though, in 2015 a bitcoin could be had for only $327! Meanwhile, the fact that bitcoin’s recent precipitous drop caused such a storm in the financial media (and beyond) suggests that cryptocurrencies have become an important enough piece of the economic picture that they’re here to stay. But is it actually conceivable, as is being suggested more and more, that in years to come you’ll be getting paid in crypto?
As we covered in the piece “How To Get Paid In Bitcoin”, it’s fairly to set yourself up to receive payment cryptocurrencies if you have some say over income method. Freelancers, for instance, can see out clients and employers willing to make payments in crypto. In some respects, there are benefits to the entities making payments as well. No bank account details are needed; payments can be made and received almost instantly, and often at less cost than traditional banking or wire-transfer services; and documentation is effectively automated in the blockchain. Furthermore, crypto payments open up more international opportunities to workers. If a freelancer in the U.S. is being paid in bitcoin for instance, it matters little whether the client or employer is in New York, London, or Sydney.
But what of salaried employees? In fact, some already have the option. CBS News noted in January that New York City Mayor Eric Adams would take his first monthly check as a mix of bitcoin and ethereum. In another high-profile example, NFL star Odell Beckham Jr. opted to take the whole of his most recent season’s contract with the LA Rams in bitcoin!
A surprising number of companies now offer the option for those of us in more ordinary gigs as well. This is true both in jobs we might expect to relate more to the crypto world (like software positions) and entirely unrelated positions (like language translation). According to a recent article published on AskMoney, bitcoin paychecks are on the whole becoming more popular, particularly among younger workers. More companies are viewing bitcoin as a viable salary option –– with the employees opting into crypto assuming the bulk of the risk.
For many though, the day-to-day volatility of many cryptocurrencies mean that the format still isn’t appealing when it comes to regular income and the need to meet expenses. For this reason, it’s also worth keeping an eye on the stablecoin option.
As explained by PCMag, stablecoins are designed to match the values of the fiat currencies they track. For instance, Tether (USDT) is pinned to the dollar, such that 1 USDT token has the same value a $1. This correction concept eliminates the bulk of the volatility that can be problematic where ordinary cryptos are concerned. Employees who opt for stablecoin pay will in theory be able to enjoy the perks of cryptocurrency (security, speed, etc.) with the stability of fiat currency.
All in all, it appears that we’re certainly heading toward more paychecks being issued in cryptocurrency. Thank you for reading, and please check back with The Freeman Online soon for more news on crypto, business, travel, and more.