Why Getting Paid in Bitcoin Is Better
Are you crazy? Why the hell in the world would you get paid in Bitcoin instead of US dollars (USD) or Korean Won (KRW)?
Since I moved back to S.Korea, I've been getting this question from my friends and family. So I simply argue that getting paid in Bitcoin (BTC) is better than getting paid in fiat. Give me two main reasons... actually, more like 2.5 reasons.
Bitcoin appreciates over time as its supply is capped and the demand is likely to get higher as more people understand its scarcity and as the world gets more dangerous. Geopolitically speaking.
Bitcoin is not just a currency but a global payment rail, especially thanks to the Lightning Network.
What does that mean?
Point #1 means: I don't have to worry about where to invest. If I get paid in fiat (such as USD), I have to worry about where to invest my money, which is devaluing at (at least) 2% per year, according to most economics textbooks (and that's not okay for me).
Point #2 means: It's a global payment rail, so I can travel anywhere in the world and freely spend my money. I own my true wealth (i.e., time and flexibility to choose different options).
Ok here comes the 0.5-point part. Let me rant a bit about my dear Korean Won, KRW.
Are you freaking kidding me? Why the hell do I have to own a mediocre "local" fiat currency when I can own a global reserve fiat, USD, or even better, BTC? I'd rather have KRW only when I try to buy a piece of real estate in South Korea... even then, I'd rather short KRW and buy it (meaning I borrow money from banks).
Ok, here are the reasons for both employees and employers to consider.
Getting paid in Bitcoin can offer certain advantages for both employees and employers.
Benefits for Employees:
Potential for Appreciation: Bitcoin's value has shown significant volatility and growth over time. If an employee receives their salary in Bitcoin, they have the potential to benefit from any future price appreciation, similar to stock options.
Global Accessibility: With Bitcoin, geographic barriers are reduced, allowing companies to hire talent from around the world. Employees can receive their salaries in Bitcoin regardless of their location, eliminating the need for traditional cross-border transactions.
Financial Inclusion: Bitcoin can provide financial inclusion to individuals who may not have access to traditional banking systems. It allows employees in underserved regions to participate in the global economy and receive their salaries securely. The next billion users are coming with money.
Benefits for Employers:
Retaining Ownership: By offering Bitcoin salaries instead of traditional equity, employers can avoid diluting their ownership stakes in the business. This can be particularly beneficial for founders and early-stage startups who want to maintain control while still providing incentives to employees. Bitcoin is for early-stage startups.
Cost Savings: Bitcoin transactions can be more cost-effective compared to traditional cross-border payment methods. By utilizing Bitcoin, employers can potentially reduce costs associated with international transfers and currency exchange fees.
Attracting Global Talent: Offering Bitcoin salaries can be an appealing perk for potential employees, especially those involved in the cryptocurrency space. It allows employers to tap into a global pool of talent, potentially finding individuals with specialized knowledge and experience.
Of course, it's essential to consider some challenges and potential risks associated with Bitcoin salaries:
Volatility: Bitcoin's price can be highly volatile (in fiat terms), leading to significant fluctuations in the value of an employee's salary. This volatility may pose risks for both employees and employers, as the purchasing power of the salary can vary greatly over time.
Regulatory Uncertainty: The regulatory landscape surrounding Bitcoin, can be complex and subject to change. Employers and employees should consider legal and tax implications specific to their jurisdiction before implementing Bitcoin salaries.
Adoption and Infrastructure: While Bitcoin is gaining broader acceptance, it still faces challenges regarding mainstream adoption and infrastructure. Employers need to ensure that employees have access to reliable means of converting Bitcoin to their preferred fiat currency or utilizing it for everyday expenses.
In short, Bitcoin salaries can provide unique benefits for both employees and employers. But it's crucial to carefully evaluate the risks and consider the specific circumstances and goals of the business before implementing it.
+Caution: By getting paid in BTC, you kinda opt out of government employee protections. So, if you want all the employee protections (like unemployment checks and universal healthcare etc), then don’t do it. (There’s no free lunch. Every option has a trade-off.)
But here’s one way you can consider getting government benefits and protecting yourself from their fiatsco.
Additionally, with Strike (at least in the US, based on my direct experience), you can get paid in USD and convert it to BTC with a percentage you set. It's really not that hard to dollar-cost average (DCA) BTC with this feature every other week using your regular fiat salary.
Once again, do your own research if you're a true Bitcoiner. Peace out.