Cryptocurrencies have been expanding in the last years as a means of payment and as a financial instrument. Individuals, enterprises, and governments are using them in many different ways. But, would you want to be paid in cryptocurrencies?
According to an experiment conducted by the financial platform Midex, 36% of employees would like to receive at least part of their salaries in cryptocurrencies. This is something that could start to change in the next few years. If more people start to learn about cryptocurrencies, the number of employees being paid in cryptocurrencies could increase dramatically in the future.
Let’s have a look at the positive points of being paid in cryptos:
Cryptocurrencies are based on bitcoin, or simply blockchain technology. This is a distributed and public digital ledger that registers all the transactions that occur on the network. With this technology, cryptocurrencies can be transacted almost instantly and with relatively low fees, depending on the virtual currency you use.
Bank transfers can take up to one week to be processed if the bank needs to control or review some aspects of the transaction. By using cryptocurrencies, the company can pay directly to the employee without depending on another institution.
Virtual currencies have an important feature, they do not require your personal data. That means that individuals transacting on the blockchain can get random anonymous addresses and keep their transactions and identity private with a little effort. But that all transactions are public for anyone with a suitable blockchain explorer. So everything is also transparent, creating the pseudonymous nature of bitcoin.
Of course, there are ways to link specific cryptocurrency addresses with their owners, especially if you never move or use your cryptocurrency, then it becomes very easy for authorities to trace you. If authorities have your identifiable information linked to a starting address (a platform or business), and you’ve only ever moved your cryptocurrency a few times, they will easily be able to link you to it.
But with a little effort and the right technology, things can become anonymous again.
Banks and financial institutions collect everything that they are able from your private life and decide whether or not to let you send or receive money. Virtual currencies allow you to deal with payments without using your identity or personal information. When transacting cryptocurrencies, you only need your wallet address.
First contact with financial investments:
By using cryptocurrencies, you will discover a new way to control your money. There are very interesting investments that can be done using these virtual currencies. For example, you could decide to invest the currencies you earn on an Initial Coin Offering (ICO).
At the same time, if you live in a city where cryptocurrencies are not accepted in shops or stores, you will have to sell them in cryptocurrency exchanges. And without even realizing it, you will be participating in one of the most volatile markets in the world.
Growing number of retail stores accepting cryptocurrencies:
If you do not want to have contact with the cryptocurrency market, then you may be benefited in the future. One of the missions of cryptocurrency enthusiast is to spread the word about what Cryptocurrencies are and how to use them.
Many enterprises, shops, and retail stores are testing cryptocurrencies as a means of payment. The technology behind cryptocurrencies is very promising and permits fast transactions without depending on other financial institutions.
Reduced dependency on the banking system:
As mentioned before, banks collect very sensitive information from you, your family, habits, and lifestyle. If you use a credit card, they know what you buy, where, when, and why. Cryptocurrencies do not register your personal data, you are your own bank.
Some countries around the world have been economically destroyed due to the banking crisis, and many life savings have been lost. These individuals will be more reluctant to trust again financial institutions. Cryptocurrencies could allow these people to find a new way to depend less on banks but stay connected with the financial world.
Receiving your salary in cryptocurrencies can be an exciting thing to try. There are many advantages that cryptocurrencies have that the banking industry does not offer, and may never do it. Of course, before taking any decision, it is important to investigate and analyze whether this decision would be beneficial for your portfolio or not.
Date Published: Thursday April 19, 2018
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