Bitcoin regulation is an ever-evolving topic, especially in the United States where national legislation is impacted by individual states.
It’s one thing when people individuals choose to get their salary in crypto, it’s another when cryptocurrency is offered in a bid to attract younger staff. Recently, start-ups and tech businesses looking to hire a younger workforce are offering salaries in crypto.
According to a recent article by CNBC, there are two different cases for crypto payment.
Cryptocurrency as a salary
Some companies, like tech-start ups, are paying their young employees and part time workers in crypto to attract younger talent. For example, SharpRank, an independent, cross-sport performance ranking system, offers crypto salaries to stand out from other employers and companies. Founder and CEO Chris Adams noted:
“We wanted to differentiate ourselves from the pack when they [prospective employees] looked at what we were doing as a startup.”
Making sales in cryptocurrency
Another way people are making money in cryptocurrency is through digital expression and selling art and creations on the blockchain. The world of non-fungible tokens (NFTs) has taken off so much in 2021 that Collins Dictionary announced the acronym as the word of the year. NFTs don’t only offer a way for collectors to add to their digital collections, but at the core of it, they provide artists with a way to sell their art for crypto. Using platforms like OpenSea, Rarible, and Nifty Gateway, artists and creatives can put their art up and receive Ether in exchange for the minted NFTs.
Going through a marketplace and earning by minting and selling art as NFTs means that artists don’t need to rely on galleries or management and licensing fees. With blockchain as the underlying tech, creatives can earn easily and receive crypto for their work. From there, they can opt to exchange it for fiat currency or hold it as a longer-term crypto investment.
However, it’s worth noting that getting paid in cryptocurrency has both benefits and associated risks.
Why earning in crypto is good
From a monetary point of view, earning in cryptocurrency yields when things are gaining and when the market is doing well. If it’s not a sole income, receiving cryptocurrency for work – or at least keeping some crypto from earnings – makes a fantastic investment opportunity without actively buying crypto. If the market rises and the value of cryptocurrency earnings increase significantly, earning crypto pays off well.
Further to the finances, earning in cryptocurrency or a blockchain-based currency increases the potential to become involved in emerging projects and platforms. As cryptocurrency and NFTs are gaining more and more mainstream adoption, it wouldn’t be surprising if digital currencies became integrated with traditional currency in the next few years. Having the potential to earn and learn the tricks of the trade while it’s still in a nascent phase might pay off massively in the future.
The risk of crypto earnings
As with all investments, there’s an element of risk involved. While Bitcoin is looking at a tidy 115.5% increase over the year, and Ethereum’s gained an impressive 559.1% in a year, the tokens still saw volatility in the year. If earning cryptocurrency is the only income, a person’s salary would be subjected to the rises and falls of the market.
If cryptocurrency isn’t stored correctly and an attack or hack occurs too, a person’s entire savings and earnings would be lost – and unrecoverable since cryptocurrency is untraceable by nature.
The rise of crypto-related jobs
Despite the risks, cryptocurrency-related careers are seeing massive demand. According to a report released by LinkedIn, crypto-related job listings have increased by 615% since August 2020. Interestingly, major financial companies like JP Morgan are listed as the largest companies looking to hire crypto-talent.