Last year, companies were forced to scramble to find workers. After years of taking people for granted, the pandemic has turned the job market upside down. There were about 11 million jobs available, but a scarcity of people willing to fill them.
In order to attract and recruit talent, companies have had to make fundamental changes. They offered higher salaries, signing bonuses, remote, hybrid and flexible working styles, one-on-one mentoring and free tuition. Even with these arrangements, seats remained vacant.
There is another sweetener that some companies are planning to entice people to join their businesses: paying with Bitcoin and cryptocurrency. In 2021, we have seen digital assets go parabolic. The number of new crypto projects and the incredible rise in value of the asset class has captured the attention of America and the world.
For some people, buying digital assets was seen as a hedge against the devaluation of the US dollar, due to rising inflation and questionable policies by the Federal Government and the Federal Reserve. Other people, especially young people, viewed cryptocurrencies as a YOLO (You-Only-Live-Once) business that could make them rich quick.
Burdened by heavy tuition debt payments and sky-high apartment and house prices, coupled with an alarming rate of inflation driving up the prices of everything, digital assets seemed like the only way to get ahead financially.
If you are paid in US dollars, as inflation increases, the value of your salary decreases. Recent data from the Bureau of Labor Statistics highlights rising costs. The consumer price index in September rose 5.4% in 2021. Growth has been so fast and furious that the US government has called for a 6% increase in the cost of living for people on social security. This is the largest increase in four decades.
The sad reality is that if you haven’t received a big raise in 2021 and inflation stays the same or continues to rage, you will actually see a pay cut. This does not mean that the company pays you less, it is that the purchasing power of your salary no longer has the same value as before. It’s like a race in which you stand still and everyone passes you. Every dollar you have is devalued and it takes more money to buy the same products than it did about a year ago.
We are seeing signs of change in payments. Miami Mayor Francis Suarez said he would take a paycheck”100% in Bitcoin“, and will also offer cryptocurrencies to public sector employees. Eric Adams, the new mayor of New York, also announced that he plans to pay people in Bitcoin and other digital assets, and will accept his first three checks from pays in bitcoin sports stars »Russell Okung, Odell Beckham Jr.. and Aaron Rodgers all said they would be paid at least, in part, in crypto,” according to Bloomberg.
With the rise of remote work and employees now doing their jobs in the United States and around the world, companies are turning to third-party providers to help them manage payments, taxes and compliance with local jurisdictions. . Alexandre Bouazizco-founder and CEO of deelcompany that manages these files, offers to pay employees and contractors with crypto. Deel can send payments directly to bank accounts, digital wallets including PayPal, Payoneer and Revolut, or directly to the person.
If you are accepting a salary in crypto, you need to have a strong stomach and be comfortable to see significant earnings. with scary dives in value. Payment in cryptocurrency is not without risk. There is a lot of volatility in this space.
In 2021, bitcoin price hit $67,000 and then dipped below $30,000 and then bounced back again. Ethereum hit record highs of around $4,800 on Dec. 1, only to see it trade around $3,600 to $3,900. If you got paid in bitcoin, Ethereum, or other coins at a high point, the price has crashed. You will have to pay taxes based on the highest value paid to you.
For people who believe strongly in the future of cryptocurrency, are open to volatility and risk, and have a long-term time horizon, paying in bitcoin can be an exciting new way to grow your wealth. .