Getting Paid in Bitcoin: Pros and Cons
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Bitcoin is a cryptocurrency which was invented in 2009 anonymously using the name Satoshi Nakamoto. Bitcoin is a decentralized payment system for providing transactions like a regular email without fees and run by institutions like banks. Since that time, the cryptocurrency has become extremely popular and today accepting Bitcoins for business and freelancers is a great way to reduce operational costs. Let’s understand how companies or freelancers can start accepting Bitcoins and whether it is really worthwhile for them.
First, let’s understand whether it is really worthwhile for businesses and freelancers or any other employees to get paid in Bitcoins. To be honest, there are two different sides of the argument, one negative and one positive. We shall consider them both.
What are the negative points or disadvantages? The first and the most obvious disadvantage is Bitcoin’s price volatility. A few years ago, one coin was valued at less than a Dollar but today it’s valued at $400-500. If there was a smooth, consistent growth in the price, it would be a great investment opportunity for anyone would like to get paid in Bitcoins, but there has been ups and downs. A few years ago, Bitcoins cost more than a thousand Dollars per coin, an incredible growth for a short period of time. Today, its price has been halved. In other words, continuing with Bitcoin, even after a crypto-salary, is quite risky.
Though it may be risky, it may also be very profitable for long-term growth.
Instead of saving your Bitcoins after receiving them, you could diversify your portfolio and exchange most of your income into your national local currency; for example, the US Dollar or Yen. Consequently, we can say that this disadvantage can be reduced by taking reasonable and wise actions but it still exists. Nobody can say for sure whether Bitcoin has a long future or if its price is going to rise. It’s unlikely that the cryptocurrency will collapse but you should think careful about your finances.
What other negative aspects of getting paid in the cryptocurrency exist? Definitely, one of the most uncomfortable features of owning Bitcoin is its infrastructure. There are a lot of websites, online shopping platforms, services and businesses which already accept Bitcoin. That’s true. Though it is more convenient and cheaper to use Bitcoin over the Internet but people still live in the real world so they need to interact and do business online. In our case, it means paying taxes, bills, buying groceries at a nearby store, pay for taxi and so forth. There are a good number of shops, firms, and companies which accept Bitcoin but their numbers are still extremely low. You can check the website,and see whether there are Bitcoin accepting companies near your location. As you can see, even most of the developed world is out of the Bitcoin network. Though if you live in New York City, Los Angeles or in Tokyo, there are maybe enough options.
The last but not least question we want to emphasize is taxes. For U.S. citizens, this issue is especially important and valuable. The United States Accountability Office for the U.S.Senate Committee on Finance madeabout cryptocurrency and its influence on taxes. Today, the government is still unsure of its position on the cryptocurrency. On the one hand, if your salary is in Bitcoins and as you exchange them to the US Dollar its price grows significantly, it means you will make extra profit for the money, therefore, you need to pay more taxes.
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Bitcoin or Not
So, we have discussed the detailed issue of whether to get money in Bitcoins or not. As you may have noticed, there are many pros and cons. In other words, you should decide for yourself if it is profitable and convenient for you. Give it a try, there is great advice on how to start.
In the beginning, it is obvious that a company or a freelancer should have an online Bitcoin wallet. If you do not have one you cannot simply get Bitcoins. There are a lot of available wallets on the Internet and we have discussed many times how to choose them and where. In short, we can only provide you with a few options. For example, you can download a wallet powered by the famous and reliable Bitcoin exchange,. Or, you simply can think about the range of wallets which is presented on of the Bitcoin network. So, the choice is yours.
Now, as you have a wallet, there is no problem beginning to accept Bitcoins. If you’re a designer, freelancer or someone who works in the IT-industry, you probably have a website. If you’re the owner of a small or medium-size business, you should also have a website. However, in both cases, we have prepared a few useful widgets and devices for your online platform to show people that you’re ready to receive Bitcoin transfers. The first one is an accept button. On this
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