When you think of cryptocurrencies, you imagine extremely long or extremely short candlesticks with prices moving up and down, unhinged. But have you ever wondered if that same cryptocurrency could ever be the way you get your paycheck? How do you feel about it? Do you prefer it? And if not, why?
While all of these questions have been answered, an important question still remains to be answered: which cryptocurrency may be best for paying wages and why NOT Bitcoin?
Salary in Bitcoin?
According to the findings of a recent survey, about 65.5% of the respondents would not mind being paid in cryptocurrencies.
Additionally, there are also those who, while not quite willing to be paid in crypto, will be open to a portion of their salary in crypto.
On being asked which coins would they prefer, the answer, as expected, was not surprising. About 74.3% of them voted for Bitcoin, while 32.9% said Ethereum and 26.5% preferred *drum roll* Dogecoin
Now, while we talk about the need for increased adoption and investments for the crypto-space to grow, paying wages in crypto may not be the best idea. Specifically, paying salaries in Bitcoin, Ethereum, and Dogecoin might not be the best idea.
First of all, we’re all familiar with the volatility that ensues every day. When it comes to investments, fluctuations are almost the norm. Sometimes, they do not affect people as badly since their livelihood doesn’t depend on it. On the contrary, if they did, then everyone would be in trouble.
This month alone, Bitcoin has gone up by 11.9%, before falling by 19.5%, leading to an overall loss of 10%. Needless to say, no one would be happy if they lost 10% of their paycheck so dramatically.
That being said, Bitcoin may still emerge to be an acceptable preference for paying wages. Especially since countries like New Zealand and Australia allow partial payment of wages in Bitcoin.
On the contrary, the likes of Ethereum and Dogecoin still fail to make a strong case for the same. Ethereum, for example, is restructuring the entire blockchain by switching to the PoS protocol. Dogecoin’s network, on the other hand, has visibly failed to show any development over the last 5 months.
Here, it should be noted that the list of preferred assets is listed in order of the popularity of the asset and not the actual understanding of the use cases. Ergo, promoting the idea of giving wages in cryptos may not be the best of ideas in light of the said lack of awareness.
If it’s not Bitcoin, then …
Stablecoins
Stablecoins are the right assets that can be chosen if one is willing to pay/be paid in cryptocurrency.
First of all, they are known to be stable. I mean, it’s right there in the name. Stablecoins are largely free from the volatility that affects the likes of Bitcoin, Ethereum, and Dogecoin.
Second, they further promote the adoption of crypto and the benefits of decentralization that go with it, without “putting livelihoods at risk.”
Ergo, for the purpose of paying wages, picking stablecoins or similar assets would be the right call over highly volatile assets. Although volatility is not as big an issue today as it was about a year ago.
