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Pros And Cons Of Being Paid In Bitcoin

  • September 28, 2022

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Pros And Cons Of Being Paid In Bitcoin

For some companies, paying their employees or subcontractors in bitcoin is the preference. Is this a good idea? If you are offered a job that is paid in bitcoin – or any other kind of cryptocurrency – should you accept it, or is it best to stay away? We’ve put together a useful list of pros and cons should you ever find yourself in exactly this situation.  

Bitcoin Is Easy To Use

Maybe you have spent a long time searching for the perfect job. You could have spotted exactly the job for you. The only thing that is stopping you from applying straight away is the fact that it pays in bitcoin. The good news is, bitcoin is actually far easier to use than you might expect. There are a variety of different websites that can be used to exchange your bitcoin for dollars, and not only that, but many online stores are beginning to accept bitcoin as a method of payment. Etsy does this, for example. 

There Are No Geographical Limitations 

Since bitcoin has no geographical limitations, it can be used in any country without having to be exchanged into that country’s currency. This can mean that buying things from abroad becomes a lot cheaper; there is no commission and no exchange rate to contend with. This means that you don’t need to worry about applying for a job in another country that might be worked remotely because the employer can easily pay you, and you can happily accept the cryptocurrency. You can then choose how and when to exchange it. 

You Could Get A Surprise Bonus

If you are paid in bitcoin, and you choose to exchange it into dollars, then you could end up with a nice surprise bonus. If you time it right, your bitcoin salary will be worth more – possibly a lot more – than it was when it was paid to you. It will take research, or you’ll need to speak to a cryptocurrency expert, but when the market is very good, you could make thousands of extra dollars from one paycheck. 

You Can Lose Money

Although there are many good reasons for accepting payment in bitcoin, there are some things to look out for as well. Bitcoin is essentially an investment, and that means that as well as making a lot of money, you can lose money too. If you look at the markets, you’ll see that bitcoin can be fairly volatile, so it’s entirely possible to pick the wrong time to exchange your money and lose out. This is why it’s good to work with a highly regarded platform such as Quantum Code to help steer you in the right direction. 

Tax 

Those lovely bonuses mentioned above as a definite benefit to being paid in bitcoin can also have a downside when it comes to paying your tax. There is still some confusion over how much tax is owed on bitcoin payments, but it is likely to be comparable to being paid in the standard way. Therefore, if you do find that you manage to make a lot more money out of your paycheck that was perhaps originally intended, do remember that you’ll have to pay the extra tax on it too. 

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