Is Accepting Crypto Salaries Worth It? Experts Unpack 4 Drawbacks to Know
Fueled by a desire for greater flexibility, the exploding popularity of freelancing is ushering in the era of the “crypto worker,” where traditional salaries are swapped for crypto payments.
Crypto payments have gained significant traction recently as a way for freelancers to be paid on their terms.
A recent survey revealed 93% of freelancers around the world want to be paid in crypto or stablecoins. This surge in interest stems from the frustration many face with foreign exchange hassles. Transaction fees and exchange conversions make working with international clients a challenge. Crypto offers a potential solution, streamlining payments and eliminating these roadblocks.
Cryptonews tapped into expert insights to explore the potential pitfalls of crypto salaries.
While crypto salaries might seem trendy, Felix Shipkevich, founder of New York-based law firm Shipkevich PLLC, warns they can be trickier than traditional methods.
The main culprit? Crypto’s notorious volatility. Unlike a steady paycheck, Bitcoin and similar currencies can swing wildly in value. This means freelancers could see their hard-earned income shrink before they convert it to usable cash.
And even though Bitcoin’s price has been on a tear, skeptics warn its future remains a gamble. Shipkevich indicated that stablecoins instead offer more stability. But their value is still tied to potentially risky reserve assets.
He also said that freelancers need to navigate a technical learning curve. They would have to understand digital wallets, blockchain, and the intricacies of crypto transactions. To top it all off, ever-changing crypto regulations throw tax compliance into a spin. These headaches can vary by location and may require specialized accounting help.
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