Last year companies were forced to scramble and find workers. After years of taking people lightly, the pandemic upended the job market. About 11 million jobs were available but there was a dearth of people who were willing to take them.
In an effort to attract and recruit talent, businesses have had to make fundamental changes. They offered high salaries, sign-on bonuses, remote, hybrid and flexible working styles, one-on-one mentoring, and free college tuition. Even with these accommodations, seats were left vacant.
There is another sweetener that some businesses are considering to attract people to join their firms – paying in bitcoin and cryptocurrencies. In 2021 we saw digital assets turn parabolic. The incredible growth in the number of new crypto projects and the value of the asset class caught the attention of the US and the world.
For some, buying the digital asset was seen as a hedge against the US dollar, which is being devalued due to rising inflation and questionable policies from the federal government and Federal Reserve Bank. Other people, especially young people, see cryptocurrencies as a YOLO (you only win once) trade that can make them rich quickly.
With the burden of heavy college tuition loan payments, exorbitant apartment and house prices, rising prices of everything coupled with an alarming inflation rate, digital assets seemed the only way forward financially.
If you get paid in US dollars, as inflation rises, the value of your paycheck goes down. recent data from Bureau of Labor Statistics Highlighting rising costs. The Consumer Price Index in September rose 5.4% higher than in 2021. development was so fast and furious that the US government almost 6% increase in cost of living for people on Social Security, This was the biggest increase in four decades.
The sad reality is that if you don’t get a huge wage increase in 2021, and inflation stays the same or continues to rise higher, you’ll actually see a reduction in pay. This doesn’t mean the company pays you less, it’s that your salary doesn’t have as much purchasing power as it once was. It’s like a race in which you stand still and everyone is overtaking you. Every dollar you have is devalued and it takes more money to buy similar products than it did a year or so ago.
We are seeing signs of change in payments. Miami Mayor Francis Suarez Says He Will Pay “100% in bitcoin,” And will also offer cryptocurrencies to public employees. New York City mayor Eric Adams similarly announced that he is considering paying people in bitcoin and other digital assets, and will accept his first three paychecks in bitcoin. sports stars”Russell Okung, Odell Beckham Jr. And Aaron Rodgers Everyone has said that they will be paid at least partially in crypto,” according to Businesshala.
With remote work and employees now doing their jobs in the US and around the world, companies are turning to third-party providers to help them deal with payments, taxes, and compliance with local jurisdictions. alex bouzizzo, Co-Founder and CEO Part, a company that manages these matters, offers them Pay Employees and Contractors with Crypto, Deal can deliver payments directly to bank accounts, digital wallets including PayPal, Payoneer and Revolv, or directly to the individual.
If you accept a salary in crypto, you must have a strong stomach and be comfortable seeing strong gains with a scary drop in value. Payment in cryptocurrency is not without risk, There is a lot of volatility in this area.
The price of bitcoin reached $67,000 in 2021 and later dropped below $30,000, and then bounced back. Ethereum saw a record high of around $4,800 on December 1st, only to see that it was trading from around $3,600 to $3,900. If you were paid in bitcoin, ethereum or other coins at a higher point, then the value dented, with you paying taxes based on the higher value you paid.
For those who believe in the future of cryptocurrencies, are open to volatility and risk, have a long-term time horizon, paying in bitcoin could be an exciting new way to grow your wealth.