Getting your salary in Bitcoin? Here are the 5 things you need to know!

From sports stars to politicians, from celebrities to simple employees of local companies, now everyone is putting forward the proposal to be paid in Bitcoin.

Why? Simple, it is now one of the strongest trends consolidated in 2021 and expanding this year around the world like wildfire.

Nobody knows for sure how it will be in Europe and other continents as regards the legitimacy of cryptocurrencies, especially now that the collapse of Bitcoin and company has hurt a lot of investors.

We have seen an important loss, of course, which many analysts are comparing to the situation that preceded March 2020 when Bitcoin marked a growth of + 340%.

This should not discourage investors, who we remember are not only small savers, but even very famous people who have seen millions of dollars catching fire.

An example? The web star, Logan Paul, who has always been a great lover of the digital world, has lost almost 3 million dollars together with his collaborator KSI.

The news appeared on Daily Star sums up the loss of the two celebrities:

“Logan Paul revealed that he and British Youtube star KSI lost a total of 2.8 million pounds ($ 3.5 million) after the recent cryptocurrency crash made collapse the prices of Bitcoin, Ethereum and Luna. “

But why, in such a context, many continue to want to be paid in Bitcoin? Is it possible that the fear of seeing their earnings fade does not worry anyone?

Simply it is now part of our society and, this year more than ever, is re-entering the common life of citizens in the most disparate ways. Among sponsorships of the most popular sports, followed up to donations in Ukraine and an alternative to online payment methods.

The latter in particular concerns a company that as the Cryptonomist writes, it is making its way among payment methods online:

Latest now: Payment infrastructure provider Primer now allows merchants around the world to accept Bitcoin.

Primer relies on OpenNode which guarantees many possibilities to make payments with cryptocurrency.

In short, it is now reality: salaries in BTC are only the next step that many realities are already accomplishing!

However, you should know that if you too are thinking of getting paid this way, you need to know some fundamental details that, between pros and cons, could make a difference for your wallet.

Instant payments with Bitcoin: speed and simple branding

You know, when it comes to marketing and advertising your business, you have to leverage on the market trends more in vogue at the moment.

The digital assets represent the greater trend at the moment, internationally. If only, for the speed with which Bitcoin allows you to transfer money compared to traditional payment methods!

If you decide to accept cryptocurrencies as money following a payment, you eliminate all kinds of intermediaries. As they say “from producer to consumer” even if in this case digital money is produced and consumed.

Among other things, offering BTC as an opportunity for payment is something that not many brands or companies do and can make a difference, showing oneself open and innovative compared to other realities that do not offer this possibility!

Bitcoin cuts banks out: minimal or no commissions!

Digital currencies were born primarily to abolish intermediaries, obviously including banks.

The elimination of a bank in charge of controlling and guaranteeing the transaction saves time and commissions that sometimes even disappear!

Just think that a card transaction can get to cost even 5% of the amount! A figure that can become problematic in some realities and that can be solved by paying with Bitcoin.

In short, it is very fast and with practically zero commissions, all for our pockets.

Volatility of cryptocurrencies: is it wise to get paid in Bitcoin?

One of the problems that are struggling to be supported by cryptocurrency haters and by those who dismiss even the idea of ​​receiving their salary in digital currency is volatility.

We now know well that being volatile is a prerogative before digital assets, Bitcoin in the first place.

Of course, if the price of our crypto-flag goes up, all those who have decided to convert their salary into Bitcoin would certainly have great benefits.

But would everyone be willing to handle these ups and downs all the time?

Irreversibility with Bitcoin payments, transactions cannot be canceled!

One of the many problems facing digital currencies is online fraud.

Today many speculators have been subject to fraud and it is not difficult to come across criminals in a world as vast as that of the web where Bitcoin navigates.

Users who use cryptocurrency for their payments look to protect themselves from possible scams by waiting for specific confirmations when receiving payments based on the blockchain. In this way transactions become more and more irreversible as the number of confirmations increases.

However this can result in a double-edged sword, since we may have been wrong to send money, or have it done on our own without realizing it in time and at that point there is no more to do!

In a nutshell, be careful with who you do business or simply transactions in Bitcoin, choose only trusted sources because once the payment is initialized and confirmed, there is no going back.

Payroll taxes, are they paid with Bitcoin or not?

This is a question that depends on where you are and obviously on the laws in force.

The key thing for a worker who gets paid in Bitcoin is to always be informed by the company that sends him his salary regarding the tax laws in place and how they may be relevant to the person receiving money in digital currency.

In India, for example, taxation is very high and on BusinessToday we read about the latest confirmations:

“During the Union Budget 2022, Finance Minister Nirmala Sitharaman introduced a flat tax of 30% on all earnings from the sale of virtual digital assets, including cryptocurrencies.”

On the contrary, countries like Portugal are real tax havens for those who earn in Bitcoin and certainly noteworthy in this regard, even Germany where you pay nothing if you hold cryptocurrencies for more than one year.

Moral of the story? Always inquire about the law in force in your country and with your employer.

Read also: Five Reasons Why Bitcoin Will Replace surely Credit Cards!

Bitcoin Salary Examples? In Italy a company already does it!

It might sound unbelievable, but despite any doubts or advantages, there are many who receive their salary in cryptocurrencies.

From NFL champions like Russel Okung who converted half of their BTC salary to UFC fighters who will see bonuses paid the same way! 

In particular, Crypto.com has signed an agreement with UFC guaranteeing crypto prizes for the first, second and third place, making the fighters of the famous league enter the digital universe.

But also in Italy the news in this regard begin to spread in 2022 as we read on Milano Finanza:

“It does so for President Massini Rosati and offers this possibility to employees who apply. It is the first Italian company to go in this direction after announcing that it will accept payments for its services in crypto since the beginning of the year “

It is in fact Tax Solutions, a company engaged in business consultancy, which will correspond the salary of the chairman of the board of directors in cryptocurrency and the same will happen for interested employees.

For sure an interesting initiative by individuals and companies, which could lead to a sea change, bringing Bitcoin into our pockets rather than euros.