TMCnet Feature
January 25, 2022

What Will It Be Like To Get Paid In Bitcoin?

Bitcoin is supposed to be a replacement for regular money. And many people are speculating on the fact that it might end up that way. Fiat money is in trouble. Debts are higher than they have ever been in the past, and the fallout from the COVID-19 pandemic is only making the situation worse.

But how would you actually feel if you got paid in cryptocurrency? What would it be like to get paid at a rate that fluctuates all the time? Could you cope with it?

You Wouldn’t Be The First

If you did get paid in bitcoin, you would actually be the first. GMO Group, a Japanese internet company, is already paying part of its employees’ wages with the digital currency. According to critics, it’s a stunt, but the first says that the currency helps employees diversify their earnings and potentially make money from bitcoin’s speculative gains.

How Do Bitcoin Salaries Work?

Bitcoin salaries are still pegged to the dominant currency in the affected country. So, in Japan, the amount of bitcoin that an employee gets corresponds to the yen value of their work, converted into the currency.

This means that bitcoin pay changes all the time. When the value of bitcoin is low, labor can buy more of it. When the value is high, labor can buy less.

Firms are using platforms, such as the Swyftx crypto exchange, to convert wages into crypto in real-time. Employees get money according to the value of bitcoin on a specified date. For instance, if the price of bitcoin was $100,000 and the employee earned $10,000 for the month, they would receive 0.1 bitcoin.

What’s interesting about this approach is that nobody really knows what is going to happen to the price of bitcoin. Many commentators believe that it will fall to zero and essentially go the same way as the 17th century tulip bubble, or that it will replace fiat money as we know it.

Because the upsides are not well known but could be tremendous, many employees are willing to take the risk. Getting paid in bitcoin could potentially be a path to riches.

Of course, the cynic would see it differently. Companies don’t take on any risk when they pay bitcoin. Instead, it’s the employee. And one has to wonder why a firm would willingly risk giving employee’s assets that could potentially help them retire young and leave the firm.

The only way paying employees in bitcoin makes sense is if the firm wants to keep them dependent. If the value of crypto falls to zero, employees will have no choice but to keep on working and selling their skills to the company.

Do Employees Want To Get Paid (News - Alert) In Crypto?

Many high-profile individuals (who would like to see crypto currencies fail), are warning employees that accepting them as pay is a bad idea. However, many wage-earners themselves see things differently. They like the idea that the value of bitcoin could skyrocket again in the future (as it has in the past), making them rich overnight.

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