Should I get paid in Bitcoin or Cryptocurrency?
Now Bitcoin has almost become mainstream, many people are asking themselves should they get paid in Bitcoins. For sometime now business small and large have been accepting payments in Cryptocurrency such as Bitcoin. But the big question is, should I?
Now that the price of Bitcoin has broken the $50k barrier more people than ever are considering accepting Cryptocurrency as payment.
Something to consider is that Cryptocurrency is extremely volatile. In a given day the price can change by $1,000 either way up or down. Now if you’re converting the Cryptocurrency as you receive it, that risk can be minimized.
Now if you’re holding onto Bitcoin, volatility can play in your favor or against you, so always take into consideration if you’re in a Bull or Bear market. Doing things this way could mean that $5,000 project is now worth $10,000. Anyone who trades across borders will be familiar with this and how the exchange rates of fiat can make your goods/service cheap or expensive.
If you’ve put a lot of work and effort into something and it goes the other way, your $10,000 job the payment has devalued to $5,000.
Unless you’re living a life where everything is transacted in Bitcoin, you really need to pay attention to the exchange rates into your local currency.
Don’t Forget About Tax
Being savvy, you really can boost your profits, but don’t forget just because your transacting in Cryptocurrency, you’ll still have to pay your taxes. In most countries Crypto is now taxed in some way either as an income or a capital gain.
Make sure you read up on your local governments website the treatment of profits regarding Cryptocurrency, if you’re unsure take advice from a Tax Expert or Accountant who should hopefully understand and be able to explain it to you.
Making a Decision
Deciding to be paid in Bitcoin is a decision which is yours to make. Hopefully we’ve explained both the positives and negatives to help you choose.
For most business it has to at least be worth considering and the possibilities of new customers to the business especially if your competitors haven’t adopted Cryptocurrency. As a business you don’t have to accept just one payment method, so maybe you could offer it as an alternative payment system.
With services like Coinpayments, it’s as easy to accept Bitcoins as it is to accept a Paypal transaction. It’s possible the fee’s for such service is less than a fiat service plus bank charges.
Now if you’re afraid of the volatility, like an investment portfolio, you could operate an asset allocation plan. In that you’d keep a certain percentage in Cryptocurrency like Bitcoin and the rest in your local Fiat Currency such as Dollars.