Companies had to find workers last year after years of taking people for granted. The pandemic shook the employment market after years of people being taken for granted. There were 11 million jobs, but there was a shortage of people willing to accept them.
Businesses had to make major changes in order to attract and retain talent. They offered higher wages, sign on bonuses and remote, hybrid, and flexible workstyles. one-on-1 mentoring was also available. Free college tuition was also offered. These accommodations did not guarantee that seats would be filled.
Some businesses have added incentives to get people to join their companies: paying in Bitcoin or cryptocurrencies. Digital assets saw a parabolic rise in 2021. America and the rest of the world were captivated by the incredible rise in the value of crypto assets and the number of new projects.
Some people viewed digital assets as a way to hedge against the U.S. Dollar that is being devalued by rising inflation and questionable Federal Reserve bank policies. Others, particularly young people, saw cryptocurrencies primarily as a YOLO trade that could quickly make them rich.
Digital assets were the only way to make it financially.
Inflation increases and your paycheck’s value decreases if you are paid in U.S. Dollars. Recent data from Bureau of Labor Statistics shows rising costs. In 2021, the consumer price index rose 5.4% in September. This rapid and furious growth was so extreme that the U.S. government demanded a nearly 6 percent cost-of-living rise for Social Security recipients. This was the biggest increase in over 40 years.
If you don’t get a substantial raise in 2021 and inflation continues to rise higher or remains constant, it’s likely that you will see a decline in your pay. It doesn’t mean that your company is paying you less. This simply means that the purchasing power of your salary has lost its value. It’s almost like running in a race where you are at the front and everyone is behind you. Every dollar you have becomes less valuable and it costs more to purchase the same products as a year ago.
There are signs that payments are changing. Miami Mayor Francis Suarez stated that he would accept a ‘100%’ in Bitcoin as a paycheck and will also provide cryptocurrencies for public employees. Eric Adams, New York City’s new mayor, announced similarly that he is interested in paying people in Bitcoin and other digital assets and that he will accept his three first paychecks in Bitcoin. According to Bloomberg, sports stars like Russell Okung and Odell Benham Jr, as well as Aaron Rodgers, have said that they would be paid in cryptocurrency at least in part.
Companies are increasingly turning to third-party providers to handle taxes, payments and compliance with local jurisdictions, as remote work is becoming more popular. Alex Bouaziz is the co-founder of Deel. This company manages these matters and offers to hire employees and contractors with cryptocurrency. Deel can send payments directly to the individual’s bank account, digital wallets such as PayPal, Payoneer, and Revolv, or directly to them.
You must have a strong stomach to accept a cryptocurrency salary. Also, you need to be able to handle scary drops in value and strong gains. Payments in cryptocurrency are not without risk. This space is subject to a lot volatility.
Bitcoin’s price hit $67,000 in 2021, then plummeted to below $30,000 and then rebounded. Ethereum reached record highs of $4,800 on December 1, but then traded lower at $3,600 to $3,000. You will be liable for taxes if you were paid in Bitcoin or Ethereum at a high price.
Payment in Bitcoin could be a great way to increase your wealth for those who believe strongly in the future of cryptocurrency, are open to volatility, risk and have a long-term time horizon.