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Choosing to be paid in crypto is an enticing new opportunity for many workers — from artists and athletes to side giggers and salespeople. It’s a chance to gain a significant rate of return on your paycheck.
Many startups are offering their employees crypto as a way to stand out from the pack. In many cases, it’s a ploy to attract young talent interested in these currencies and NFTs, and it might work.
According to a survey conducted by the deVere Group, the younger you are, the more likely you’ll want to receive a crypto-based paycheck. More than a third of millennials (36%) and half of Gen Z (50%) said they would receive half their salary in Bitcoin, ether, and other cryptocurrencies.
Here are three reasons why…
1. Faster Payments
When it comes to getting paid, speed is a priority. You have bills to pay and mouths to feed, so it’s important you receive the money you’re due instantly.
Cryptocurrencies operate at a different speed than legacy banking and payment systems, making it possible to receive your paycheck instantly. Unlike traditional banks, which often put holds on withdrawals and deposits, crypto processes these transactions with no such limits.
Crypto transactions also can’t be reversed. Blockchain’s encryption methods mean your employer can’t take back a paycheck after you receive it.
2. You Have More Flexibility
Removing delays between getting paid is another big appeal of a crypto paycheck. The alternative — that is, waiting to cash a check — can be hard on your finances, especially if you’re living paycheck to paycheck.
Living paycheck to paycheck isn’t that unusual nowadays, no matter how much you earn or what currency you accept. Last year, 54% of Americans lived paycheck to paycheck, including those making more than $100,000 a year.
Living paycheck to paycheck means any delay in getting paid could be an emergency. It may even push some people into borrowing payday cash advances. A payday loan cash advance is due back by your next paycheck, which can be challenging when that cash already has a job.
If you find yourself in this tough situation, consider researching other personal loans. An installment loan is a payday loan alternative that extends your term. You’ll have more time to pay what you owe over multiple installments, so you never have to repay your installment loan in one lump sum.
3. Gets Your Foot in the Investing Door
Perhaps the biggest advantage to receiving part of your salary in crypto is how easy it makes investing. You’ll automatically receive the funds of your choice, and there’s a good chance you could be earning considerable gains with each paycheck.
However, crypto is not for the faint of heart. Despite making an upwards projection, Bitcoin is volatile in the day-to-day. According to Bloomberg, Bitcoin lost as much as 50% in value at the start of the year before it soared past 120% later on.
This kind of volatility isn’t for everyone; it can be hard to see your paycheck’s value fluctuate wildly from one day to the next. However, there are definite advantages for those willing to see where crypto takes them. Keep this in mind if your employer ever offers to pay your salary in crypto.
As we move into 2022 and beyond, more and more individuals are going to be receiving their paychecks in Bitcoin or other cryptocurrencies.
While not everyone is going to want to or necessarily benefit from receiving their paychecks in crypto, there are many benefits to it that many will certainly want to take advantage of.
Eventually, you may not even have a choice as the world shifts into a cashless world. The digital blockchain era is upon us and it will only grow from here.
In fact, many nations are already creating their own digital currencies called a CBDC or Central Bank Digital Currency. So as you see, it’s just a matter of time.
But as it goes now, it is best to carefully weigh the pros and cons if your employer gives you the option to receive your paychecks in crypto or not.
If you’re already crypto savvy, there are many advantages that are hard to pass up. But if crypto is not for you at this time, you’re probably better off passing on the opportunity.