Need to pay in bitcoin or dogecoin? Here are the rewards and risks

There is no denying that with massive resignations, workers have more power to seek what they want from their jobs.

In addition to flexibility and great benefits, Berg is gaining popularity as a new workplace – Option to pay in digital currency.

According to a global poll by the financial advisory firm deVere, cryptocurrencies will become more common in wage negotiations with younger workers.

The study found that more than a third of millennials (aged 26 to 42) and half of Generation Z (25 and under) would be happy to receive half of their salary in bitcoin or other cryptocurrencies.

Cryptocurrency is a digital asset that operates partly on its own without the need for a central party to manage the system using computer code and blockchain technology.

Another survey by SoFi and Workplace Intelligence of 800 U.S. employees shows that 42% of them want fun-free tokens as performance rewards.

Fungal tokens, or NFTs, are unique assets that can be verified and stored using blockchain technology – a digital ledger similar to the networks that support cryptocurrencies.

Tony Jarvis, director of corporate security at Asia-Pacific and Japan at cybersecurity start-up DarkTrace, said that getting money in digital currency is undoubtedly “trendy”.

“Paying your employees with Bitcoin is a way of attracting so-called ‘future thinkers’, especially if you are in a certain business like FinTech,” he added.

In fact, Sharp Rank is one of the companies that pays in cryptocurrency in an effort to attract younger workers. It is an independent evaluation agency that works with college students As brand ambassadors.

Its founder and CEO, Chris Adam, likened the crypto salary appeal among young people, saying, “When Starbucks first became popular, it was important to watch with the Starbucks trophy.”

“It’s very similar to getting some kind of cryptocurrency, because all their friends are talking about it.”

We found that younger populations with a higher risk appetite tend to see risk-reward through a different lens than someone who knows they are only being paid in cash.

Paying for cryptocurrency helps companies attract young talent, which offers both rewards and risks to employees. Check out both CNBC Make It.

1. Quick payments

Forget waiting time, transaction fees and additional costs associated with traditional banking transactions – Getting paid in cryptocurrency will be much faster, and it gives employees a firmer position, Jarvis said.

“When your employer pays you [digital currency], The next second your employer pays for it, it will be in your account. You do not have to wait until the next day. “

Getting paid in cryptocurrency is very fast, and it gives employees a firm foothold, said Tony Jarvis of DarkTrace.

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Sumit Gupta, CEO and co-founder of CoinDCX, a cryptocurrency exchange platform, said it was “not surprising” that young investors were increasingly interested in cryptocurrency and wanted to make money that way.

“They will have crypto access to their portfolios immediately and will not need to switch from Fiat, which will be a factor in the extra transaction fee.” Fiat money refers to government-backed physical money.

2. Avoid taxes – no

As for cryptocurrency tax laws, the country where you work is important. Some countries are “very soft” on that, Jarvis said.

For example, the 0% tax on Portuguese bitcoin is known as the crypto tax haven.

“When you consider how much these assets increase over time, they are significant gains if you save on that tax side of the equation,” Jarvis added.

However, Gupta said more and more countries may tighten their grip on digital assets in the future “in an effort to improve consumer confidence and security.”

Later this month, starting April 18, individuals in the United States will be required to report cryptocurrency transactions to the Inland Revenue Service.

Gupta added that similar measures have been implemented in India where income earned through cryptocurrency is taxed at 30%.

“Employees who are paid at crypto are important to know how such changes affect the holding and use of crypto assets … Continuing to learn about policy changes will allow users to act quickly on improvements,” he said.

3. Instability: Two-edged sword

It is no secret that the crypto market is volatile.

Even Bitcoin, one of the most popular cryptocurrencies, is not free from price fluctuations – It has fallen sharply since November, falling more than 40% from a record about $ 69,000.

However, the growth in the value of bitcoin over the past decade cannot go unnoticed, with its value starting at “two dollars,” Jarvis said.

“If you get your salary for the week or month, it goes into a certain dollar value today and it grows automatically over time … there are some serious returns.”

The crypto market may be volatile, but it is still attractive to young people with “high risk hunger,” said Chris Adam of SharpRank.

Insta_photos | Ishtak | Getty Images

For SharpRank’s Adam, going into the ups and downs of the digital currency is “going to be a very positive experience.”

“We see so many kids going through cycles like this … overnight, I can say I woke up [cryptocurrency] 500% depreciated. The first thing I do is ask why, and then I’m going to find ways to make sure it’s not happening again, ”Adam added.

“I think it’s an applicable skill in asset allocation and investment.”

Still, receiving or receiving money in cryptocurrency is not for the faint of heart.

“We found that young people with a higher risk appetite tend to look at risk-reward through a different lens than someone who knows they can only be paid in cash,” Adam said.

4. There are cyber security threats

While cybersecurity threats are not unique to cryptocurrency, professionals told CNBC’s MacId that “violations will continue as long as cryptocurrency is popular.”

“A lot of scammers and attackers target crypto wallets – They use social engineering just like we get phishing emails, ”Jarvis said.

“Unless you are a security expert, it can be very difficult to know how to protect those assets. You have assets stored on a third party site, so there is risk.”

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