Cryptocurrency payments have gradually become the international norm, is it a gimmick or an upgrade?

If you could choose, would you choose a particular cryptocurrency based on your salary?

Most people familiar with fiat currencies find it very difficult to accept cryptocurrency, which is not as easy as working for them.

However, with the development of cryptocurrencies and the increasing application of gradually expanding blockchains,Now more and more blockchain industry experts are ready to accept digital benefits like Bitcoin as monthly income..

The New Zealand Revenue Service recently announced that starting September 1, traders will be able to use cryptocurrency to pay their employees.

Depending on the type of integration of multiple currency exchange agencies, the constant payment of fiat currency in one cycle may not be the only option for the business or the paying agency in the future.

like that,The use of cryptocurrency payments is accelerating as it moves from one level to the next.

Is cryptocurrency your first choice for payment?

For a long time, people believed that cryptocurrency was a bubble, but as the cryptocurrency market becomes more and more powerful, there are more and more cryptocurrency applications.

From a business perspective, there are many companies around the world trying to use cryptocurrency to pay their salaries.

However, is it really good to pay cryptocurrency employee salaries from the perspective of ordinary employees, regardless of state laws and regulations?

In fact, most people use cryptocurrency to pay their wages for the following reasons:

1. Investments

Needless to say, I don't think anyone in the financial world knows this.

Research has shown that Bitcoin's risk-averse exchange rate has historically been higher than that of any other major asset class. Bitcoin's Sharpe Ratio is higher, at 2.0 for four years and above 3.0 this year.

Although gold has recently rebounded, it is hovering around the 1.3 line.

The Sharpe comparison for contract and EMFX is the most dangerous in a bad environment.

A study by financial analysts at Yale University found that cryptocurrencies are worth investing because they often have a higher exchange rate and higher return on investment than contracts and commodities.

2. Easy

For employees working around the world, it is easier to get salary-based cryptocurrency than it is to get tax benefits.

After all, the real-time cryptocurrency remittances, of little or no value, and the ease of direct exchange of any type of fiat currency cannot be used as currency in other fiat currencies. .

In addition, more and more companies are starting to accept that consumers directly purchase products or services using cryptocurrencies.

For example, the NBA Lone Ranger team recently announced that they will accept Bitcoin as a payment method. This makes Lone Ranger the second NBA team to accept Bitcoin payments. Fans can now use BitPay to purchase tickets and merchandise online.

3. Expenses

The spread of the new virus and the concert industry means that with more freelancers working from home and online, this form of getting a job on the internet will have more consumers. .

Using cryptocurrency payments allows freelancers to pay faster, the cryptocurrency market is generally cheaper than using wire, and cryptocurrency payments are easier to convert to local currency.

Accepting payments in cryptocurrency can also bring new business opportunities for freelance employees, some companies and start-ups often use non-fiat cryptocurrencies to pay their employees.

4. Speed

Cryptocurrency can reach cryptocurrency wallets faster, but in the past there have sometimes been delays in paying wages from existing currencies, which is a major complaint for consumers.

5. Transparent

The blockchain creates invariable data and transparency of payments that occur to protect both parties in the event of a dispute.

Additionally, if an employee decides to keep the cryptocurrency, they will see their compensation increase in value over time. Especially in a bull market.

This situation is also truePaying with cryptocurrency will be a big challenge in the future.

a problem that cannot be ignored

There are two sides to everything, and the same goes for cryptocurrency payments, some good and some bad.

At today's accounting, auditing, tax and legal levels, companies still pay their employees' salaries in cryptocurrency, and there are many issues that still need to be addressed.

"We do not accept to pay anyone in cryptocurrency," said Alex Sims of the University of Auckland, a crypto specialist in New Zealand.

The main reasons everyone opposes the use of cryptocurrency for payment is mainly due to three factors: fiscal policy, high volatility, and low access.

1. Tax policy

Regarding taxes, depending on the situation, there are two types of people who oppose cryptocurrency payments.

On the one hand, they don't dare to accept cryptocurrency payments due to uncertain tax rules.

Another is that stricter regulations in many countries have made cryptocurrencies increasingly unusable as tax-exempt devices.

New Zealand, which has agreed that wages can be paid in cryptocurrency, has also decided that cryptocurrency payrolls are taxed like any other currency.

New Zealand also has strict rules for many types of cryptocurrency and different taxes are paid.

2. High volatility

At the same time, the risk and volatility are greater compared to the capitalization of the cryptocurrency itself.

Jim Rogers, a leading US investor, also believes that cryptocurrencies are not as valuable as currencies and cannot be a truly valuable commodity in terms of value and exchange rate due to the uncertainty of cryptocurrencies.

3. Low entry

Cryptocurrency is still in its infancy compared to legitimate benefits, and its affordability is, of course, lower than the global value or the legal value of some major countries. .

From the perspective of ordinary employees, cryptocurrency payments have their own advantages, and although they are the first choice of employees, especially coworkers, otherwise it can have a negative impact on employees. They turn to the courts.

At this point, salaries can be paid in cryptocurrency, but not all salaries can be paid in cryptocurrency, so you need to match the salary with the fiat currency in the appropriate ratio and the payroll using the template. from fiat currency to cryptocurrency. Follow the current situation.

system

Currently, some countries include cryptocurrency payments as a legal standard.

Nigel Green, CEO and Founder of DeVere, said, “Cryptocurrency is gaining momentum in today's world. As interest, demand and market adoption increase, “More and more people will still accept payments in Bitcoin and other cryptocurrencies. one day become a standard. "

However, it should be noted that the legal status regarding the use of cryptocurrencies may be grayed out in many countries and illegal in others.

There are still many countries and regions that do not currently accept cryptocurrencies as a policy., issues like taxes and unstable prices arise during the cryptocurrency payment process.

This makes the process of processing cryptocurrency payments more convenient..

With the rapid growth of the crypto industry, the regulation of cryptocurrencies in many countries continues to tighten.As most people still prefer to pay in cryptocurrency due to the huge price and regulatory changes. strict?

Cryptocurrency itself still has limits, but as the application scenarios of cryptocurrencies increase, people's awareness of cryptocurrencies has increased, and their applications in operation and in life will become again more complex.

Cryptocurrency payments are risky, but there are no “basics”. Perhaps the "salary" you receive now will double in the future due to changes in the industry. Perhaps this is the reason why people are willing to accept cryptocurrency to pay. This is a reason.