Topic: What if salaries were paid in BTC - page 7. (Read 1106 times)

Will not make any difference I would say. Companies in the past tried this model, it just adds another step to the payee to convert it back to actual money to pay his expenditures and bills.
If we are talking about freelancing or a contract that is an online mode, there I can see a big role of Cryptocurrency or Bitcoin in general. As it will allow them to pay for the work instantly without worrying. In the actual world, no big corporation will be doing this anytime soon.

That has been the case for several companies that pay salaries via bitcoin, but not everyone expects to be paid with bitcoin for some reason and maybe your friend has heard of that from some of the media he's trying to browse.

It depends on the government, although this step will be more positive for the bitcoin ecosystem, I don't think the government will take this step to pay salaries because it will affect the country's policies in terms of fiat currency transactions and will affect the stability of the fiat currency itself. Unless this step is taken when the country has established bitcoin as a legal tender, there is a lot of opposition on the part of some to this step and I am sure that many countries would not do something like this.

This is difficult to do, but not impossible. At least to start with, they can get some of their salary in bitcoin. For example, 10% of it. In this way, everyone working in the company has invested in Bitcoin. Some sell the day they are bought, while others hold it as an investment. Such things can be done, but I don't think they will accept their full salary in Bitcoin. Maybe if they just have the money they earn as a bonus, the company can pay that amount in Bitcoin.

It is not impossible that salaries are paid in Bitcoin, before carrying out these actions, it is necessary to educate all employees to know how to sell Bitcoin to fiat. It's impossible for the company where your friend works to give a salary in Bitcoin for himself, the company has policies and every policy needs to be obeyed by all employees.
90% of employees working in a company want a stable salary, they are also in different circles. Salaries in fiat money are the best solution for those who have never made transactions using Bitcoin, it is also necessary to consider convenience for employees before making a decision.

Let's imagine that in a country such as Ukraine the salary package can offer you a choice: you can choose between being paid in UAH (Ukrainian Hryvna) or BTC (UAH equivalent).
 The first problem with BTC salary is the question: how the government should monitor this process.
 The second problem is the necessity of exchange BTC into Ukrainian Hryvna.
 The third problem is the possibility to buy something in BTC in Ukraine.

1. Problem. The Government
For instance, I get 0,3 BTC as a payment for my work. I want to buy something with it, using exchange services. How does tax rules may apply to my situation?
There are two scenarios:
1) Tax regulator may provide rule, that I obliged to pay taxes from BTC or any other crypto-earnings in a moment, when i try to exchange BTC in Ukrainian Hryvnas. So, the tax regulator must gain access to monitor my account, where I hold my earnings in BTC to confirm the tax rate of operating due to the rate of BTC itself on the market.
For example, I sold 1 BTC for exchange rate 1 to 30 0000 (in USDT) and then I need to sell USDT for Ukrainian Hryvna (37 Ukrainian Hryvnas for 1 USDT). So, there are two operations, which will be taxed for approximately 20%.
I do not see the possibility of giving monitor access to the tax regulator willingly by my side due to the nature of the crypto-currency.
Also, I do not see the possibility for the government in our time to track all operations in crypto in Ukraine without gaining access to holders account without their willingly cooperation and willingly verification that they are truly the owners of crypto-account.
So, we can make an assumption, that the possibility of that option is low enough.

2) Tax regulator may provide rule, which states, that all operations of income in BTC (or in any crypto) should be taxed immediately after the crypto has been received into the account.
This helps regulators to track the rate between BTC, USDT and Ukrainian Hryvna, but also this may give a chance for companies to pay salary when the rate is low, so there is an open source of manipulation, which only can be reduced to zero by a law, that will oblige companies to pay salaries in a specific time (which opens a new window for market manipulation)
I don't see this option as vital.

2. Problem. The Exchange
Do I really have an option to spend a BTC as easy as Ukrainian Hryvnas in stores? Well, some fancy stores which sale technical staff such asL iPhone, MacBook, Dyson and Marshall sound design may include crypto as a payment, but mostly crypto payments won't be accepted on 98 % of  Ukrainian stores.
Answer is simple - there is no legal changes in tax law (Code of Taxes),  but there is a law for cryptocurrency. It means that crypto is legal, but income of it is questionable, and banks will block any payments in that form of payment.
So, I need to to change BTC in Ukrainian Hryvnas constantly (BTC into USDT, USTD in Ukrainian Hryvnas).
One day banks may ask where do i get my money, and due to reasons that I've written above, there can not perceive my BTC earnings a legal. So, my only option is cash and low-budget buyings.

3. Problem. Possibility of buying

We estimated above, that earnings in BTC are possible, but buying something may seem not so possible. OF course there are shady schemes that will help you out to buy something like an apartment for yourself in BTC, but you won't have a reliable paper for the kind of operation due to absence of legal tax regulation, therefore where will exist questions about operation itself.
For things like iPhone, stores may also use shady schemes, but the amount of money not so sufficient as buying a flat.

As a conclusion, I may suggest that BTC salary in Ukraine is highly questionable due to restricted areas of spending BTC, absence of tax law for that kind of operations and non-transperent monitoring of that operations by the government.

I have figured out one tiny disadvantage of having salaries in BTC. As bitcoin blockchain is transparent, and people prefer not to talk too much about how much they earn, we have a conflict of interest here. Think of a guy, who does not care much about having several BTC wallets for different purposes and with time, he flashes his BTC address among his colleagues. All the information, such as where, how much and when suddenly becomes public. People will start to track that persons life.

Perhaps the only country currently offering this facility is El Salvador. El Salvador is a country where you can get all the benefits with Bitcoin. There are two local currencies in El Salvador, one is their own currency and the other is Bitcoin, that is, if you work in that country and want to receive your salary through BTC, they will give you this benefit, but you will not get this benefit in any other country. If you have to pay for work in any other country, then you have to pay your work remuneration through the local currency of that country. Because no other country except El Salvador has officially accepted Bitcoin directly, so you will not get this benefit from other countries.

Numbers of replies on your post in such a short time, represents the interest of other members in this discussion. And my opinions is, if you are doing a private job like for a private sector then you can definitely get your wages in BTC unless your employer wants to give you in BTC. Because if your employer doesn't want that then what can you do.

And the only fault i see in getting BTC as wages is that, when your employer fix the BTC price at which you will be get paid, and the time difference might be so huge that there calculating time's price of BTC might be $30,000 and when they are distributing you the amount then the value of BTC could be $29,000.

Other than that i think i can not agree more on this. Because currently i am also getting paid in BTC.

Salaries coming from the government pocket is a No, it's never going to work, but if you are working in tech companies that belong to private personnel then you can bring up the idea of getting paid in Bitcoin and that is left for the owner to accept.

Some jobs online pay their workers in Bitcoin but not all of them, some have the option to choose which payment method you prefer.

The government has no reason to pay its people in decentralized digital money, that's like a slap to their faces.

If you are a big store owner or business owner you can start accepting Bitcoin payments, It makes my Bitcoin accumulation to be more easier instead of buying directly using Fiat.

Government has nothing to do once the company is willing to pay their employees by bitcoin not unless it is banned in that said country so then it cannot be allowed.
and also I believe that there are already some company that exists in which willing or acting to be paying in bitcoin while maybe some is with altcoins.

Actually I am an employee and since I learned about bitcoin , I kept praying that my Boss will consider paying me or us with bitcoin.

They're not going to want it [paying wages in bitcoin]. In the world of sports there are several clubs that are rumored to have paid players' salaries with bitcoin. In 2021 NFL players choose to be paid with bitcoin and other cryptos as reported in several local media. Football players have also been paid with bitcoin and other cryptocurrencies. There are also big companies that pay. This shows that bitcoin is known by many people to be a solution and has happened.

Hoping that those whose salaries are from the people will not approve because it can become a problem for them if fiat currency is useless.

Same old same case when someone force something to be paid or use Bitcoin as a currency when buying Bitcoin is very easy through an exchange or P2P. Yeah you need to spend some money because you need to pay the network fee or trading fee, but it's your choice, as long as you want to hold Bitcoin for long term, you will not care about the fee you need to pay.

I have a strong belief that in my country despite the crackdown on crypto, there would be some individuals in tech progressive companies that would have opted for this option may not a 100% but 50 - 50. They do it for several reasons like inflation, recession and economic uncertainty. Also, countries with currency turbulence and outdated banking systems, like some in Latin America, see the highest level of crypto payments. We have also heard of high-profile individuals like sportsmen and politicians choosing to receive part or all of their pay in Bitcoin. As bitcoin education grows and we see an increase in adoption, we would also see more employees accept bitcoin paychecks as a legitimate payment method. Bitcoin-funded payroll systems offer advantages like swift cross-border payments but face challenges like volatility and compliance issues.

I am one of the lucky people that made arrangements with my work to pay 10% of my salary in Bitcoin (BTC) .... They support Bitcoin and approved it, so I do not have to convert it from Fiat to Bitcoin myself.

I use that money to buy lunch at some local food vendors that accept Bitcoin, also something that we introduced to them and now they are accepting Lightning Network payments. 

In fact, there are a large number of organizations that are fully transitioning to cryptocurrency payments.
I have designed websites for such companies that pay their salaries in bitcoins.
Personally, I have worked on 3 projects like this, so it's no longer just a fantasy

I find it unnecessary, unless you are living in a country in which the adoption of bitcoin is very high then most likely you will have to convert your bitcoin to fiat and lose some money on that conversion, and in that case it would be better for you to receive fiat directly instead.

And once you have bought all of what you need and you are sure you have enough fiat to cover some future unexpected expenses then you could decide to convert your fiat to bitcoin, which is basically what we are already doing anyway.

There's really nothing to reply this post of yours.

Your friend insisted that the salary of some country be paid in Bitcoin, but sorry to ask has your friend ever been paid in Bitcoin in the company he works? In as much as majority of Bitcoiners (those that truly understand what Bitcoin is, not the buy high and sell low set of Bitcoiners ) would love this, it's not going to take effect in all countries. Although some companies might decide that they want to pay their workers in Bitcoin since what they deal on is majorly related to Bitcoin, that's the company's decision, while others might decide to stick with the normal fait they have been transacting with before. Just take note this issue of paying workers with Bitcoin for now is not going to happen but with time and better understanding of Bitcoin it might come to reality.

If salaries were paid in Bitcoin then I am assuming the result will be only slightly positive since many who have bills to pay would need to automatically sell to pay for goods and services. So there would be both a buy and sell transaction and the result would be the same.

There would be a small amount where the holder might keep the Bitcoin because they don’t need it as an investment. So there would be no sell pressure on that end. But for most they would need to sell to get fiat.

in this case of course will reap the pros and cons because usually people will like to receive a salary in fiat currency which is of course stable, whereas if paid using btc which has a fluctuating nature of course it will make the person receiving the salary more profitable if they have received a salary the price of btc go up suddenly and sell it when the btc price rises or lose money when the salary is received, the btc price immediately drops and sell it when the btc price drops.

In my opinion, using this system will certainly make the price of btc fluctuate even more because usually an employee will sell btc for their daily needs.

Is it private sector? I mean companies that is not controlled by the local government? If that is the case then it's up to the companies and it's employees as how they are going to used bitcoin as salaries. Of course, for bitcoin enthusiast, this is a win-win situation, but for there there could be majority that is totally against it as they still wanted to have fiat, specially non-crypto employees.

As for the effect, of course there could be, but it's going to be small and the only one that is going to be happy here in the bitcoin loving employees as he no longer have to invest. Or better yet, he could setup like 60% in BTC and 40% in fiat salary. That will be really awesome for companies that is willing to give that to their employee as a setup.