People see Bitcoin differently with some seeing it as a bubble; others see it as a trend while others say it’s the next big thing. Whichever way you view it Bitcoin is a force to recognize in the modern society and economy. Bitcoin along with other digital currencies have had a drastic rise over the years pushing hard into the list of assets that well-known investors want to venture in.
With the popularity of Bitcoin, what would happen if your employees requested to be paid in BTC instead of the national currency? It’s something to look into since it has already started to happen. It’s good to prepare for tomorrow. In this article, we will elaborate what you need to know so that if such demands arise they will not take you by surprise.
Is Bitcoin legal?
The answer to the legality of Bitcoin is hard since income countries its legal while in some it’s not. Even though most of the countries have not yet decided the fate of Bitcoin, it has already been declared illegal in Nepal, Bolivia, China, Morocco and Ecuador. With the currency attention on cryptocurrencies by many countries, the list may grow longer in the near future.
Countries in which you can be able to pay employees using Bitcoin are Japan and United States even though in the US it would be extremely difficult to comply with the tax laws. The reason being withholding tax for employees is done in dollars. The other problem would be that no major financial ledger system has a mechanism to support BTC. This means that adhering to the International Financial Standards would be extremely difficult.
Are there reliable Bitcoin rules?
The answer is no because many governments are still trying to find a way to deal with digital currencies. That means most of the rules are still being drafted. The United States may also strengthen their regulations to protect the dominance of the US dollar because of its one of the powerful tools used by the government to impact international policy. The other reason may be to reduce criminal activities which are believed to be funded through BTC.
Will Bitcoin’s value change?
As a start, it’s important to understand that Bitcoin has no inherent value. This is because it does not have any underlying asset and it only depends on peoples transactions. However, if one big company like Amazon or even Apple would accept Bitcoin as a means of payment and duly recognize it, then they would move the digital currency to a permanent state. However online currency platforms can easily fall out of favor or be replaced by a similar better platform which is a huge risk leading to loss of value.
Paying employees using Bitcoin would be highly depended on the market trends meaning that if the value of BTC drastically went down so would do the employees morale. Therefore companies should think again before agreeing to pay their employees using the new currency.
Is Bitcoin worthy the hustle?
Yes it’s true that it could be possible to pay employees using BTC but is the hustle worthy it? To some companies, it could be worthy since they would attract new talents. It could be different gaining a lot of attention in a world where innovation and competition take center stage. It could also turn out positive especially in building a company brand.
What does the future hold?
Were already moving towards a stage where paying employees using Bitcoin may become a norm. GMO Internet Group has already set the pace after it started paying some of its employees using Bitcoin. However, cases like the recent market correction which led to massive losses may be a huge concern for the market and even employees who would wish to be paid using digital currencies.
Even though paying using the cryptocurrency may be tricky right now, some CEO’s may decide to push the idea, and we could soon see more companies deciding to pay their employees using Bitcoin.