Tue. May 24th, 2022

Bitcoin prices Has come down to a six-month low On monday. This is bad news for those who have invested in crypto, including a diverse group of politicians, celebrities and athletes. Recently announced That they will accept their paychecks in cryptocurrency.

Mayor of New York City Eric Adams, Basketball players Clay Thompson, And NFL quarterback Aaron Rogers After the fall in the price of Bitcoin, everyone faced a big pay cut Less than $ 33,000 This week – far from the November high of about ,000 69,000. NFL wide receiver Odell Beckham Jr.. An analysis from MarketWatch. Although the price of Bitcoin has recovered somewhat, it did not fully recover early Tuesday night and remains highly unpredictable.

This has become a cautionary tale about why these high-profile folks might not be so good at converting your cash payments into a highly volatile and largely unregulated digital token.

At the moment, cryptocurrencies are in a gray area U.S. labor laws generally require that company Pay the minimum wage to their employees, So an employer is less likely to pay you exclusively in cryptocurrency coins, although they may offer you some additional benefits. What a company might be able to do Convert your US dollar-based paycheck In a certain cryptocurrency currency, such as Bitcoin or Etherium. Using that method, the number of coins Accepts an employee Will depend On the value of that currency, In dollars, when the employee is paid.

For example, if you converted an annual salary of $ 68,000 to Bitcoin in November, you would earn almost a bitcoin. If you had the same pay conversion earlier this week, you would have earned about two bitcoins.

There are probably a number of steps you can take to convert your salary to cryptocurrency. If yours Salary system Offering a cryptocurrency payment option, you must first decide how A lot of your salary You want to be converted and you want to get any currency. There are many different cryptocurrencies available, but the most notable is Bitcoin, currently priced at About $ 38,420, And etherium, which is valuable At about $ 2,630.

On Payday, your employer will send that portion of your salary to a cryptocurrency exchange platform without depositing it in your bank account. That platform will then convert the dollars you receive from your employer into the currency of your choice and then deposit those coins into a digital wallet. Specially designed for cryptocurrency, Which you need to set up. Your employer Can pay a fee Cryptocurrency platforms for providing these services.

If your employer does not offer this option, you can still pay in crypto. Some cryptocurrency platforms allow you to sign up Direct deposit, Which you can use to schedule Cryptocurrency purchase Every time you pay.

These bitcoin paychecks are part of a broader movement to make cryptocurrency a big part of our daily lives. Today, the choice of mobile payment services We sell And PayPal Allow people to buy, send and receive cryptocurrencies. A growing number of credit card offers Cryptocurrencies as part of their rewards program. Even if you don’t want to own the cryptocurrency directly, you can still invest in the cryptocurrency economy through the stock market, where you can buy shares of a publicly traded cryptocurrency company or A bitcoin-linked exchange-traded fund, Which is a basket of securities, with regular old US dollars.

Still there There is not much you can do Although with that cryptocurrency. Most sellers continue to require US dollars as their primary means of payment, and you will not be able to use cryptocurrency for basic daily expenses such as rent, mortgage payments, food and medical bills. For now, taking your paycheck in cryptocurrency is the most similar to investing your entire paycheck in the stock market – although it is much more risky.

“Most people don’t have the extra income to invest directly in an investment, let alone a volatile investment vehicle like Crypto,” explains Cathy Barrera, founder economist at Prism Group, a blockchain consulting firm, and program director at the University of Pennsylvania’s Wharton Business School. Digital resource program. “When we talk about people like celebrities, we’re talking about people who have incredible disposable incomes.”

This means that these universal examples of people choosing to pay crypto pay are another reminder that rich and powerful people can take financial risks that most of us cannot. And they have other motives for promoting cryptocurrency. Number of American mayors rising on bitcoin salaries, including Miami Mayor Francis Suarez and Jackson, Tennessee, mayor Scott Conger, Want to fascinate growing The cryptocurrency industry in their town. Employers, likewise, want to attract Young and in-demand technical staff With an advantage that can sound nice. Celebrities and athletes continue to pay to promote lots of products and ideas that don’t make sense to the average person.

So even if you don’t want cryptocurrency payouts, you’ll probably keep hearing about them. But if the idea of ​​paying in cryptocurrency is appealing, be prepared for some unusual fluctuations in your paycheck – and some Sad papers.

This story was first published in the Recode newsletter. Register here So don’t miss the next one!

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