Crypto Worker

Crypto Worker


Good day everyone,

I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent phenomomin of the crypto worker, along with four drawbacks.

 

 

Crypto Worker

The crypto worker is a term used to describe those who desire for greater flexibility in their working and financial life. They are often freelancers, but can be fulltime workers, who have traditional salaries swapped for crypto payments. This has seen a rise to 93% of freelancers globally wishing to be paid in cryptocurrency, according to cryptonews. This surge has come from the frustration many face with foreign exchanges, such as transaction fees and  conversions when working with international clients. 

Most would look to be paid in a traditional cryptocurrency, or in a stablecoin. Crypto offers a potential solution to the struggles of those caught in the mainstream financial system when looking to undertake freelance work, and streamlining payments could help to eliminate these hurdles. Cryptonews questions a selection of experts to delve into the potential pitfalls of this system.

Felix Shipkevich, founder of New York-based law firm Shipkevich PLLC, noted that crypto salaries are the current trend, but they are much trickier to navigate than traditional methods. This is mainly down to the volatility of crypto, which means one is not receiving a steady paycheck. Free-lancers can see the value of what they earn change due to the volatility of crypto, while they may end up with a different figure than what they expected to be paid before they get to cash it out.

With Bitcoin's price higher than ever, many feel the potential of increasing earnings through being a 'crypto worker' is a worthwhile endeavour, however sceptics feel it remains a gamble. Shipkevich indicated that stablecoins are the safer option, but noted their value is tied to potentially risky reserve assets.

He noted that freelancers need to navigate a technical learning curve and they would need to learn to understand digital wallets, blockchain, and the intricacies of crypto transactions. On top of all that the ever-changing crypto regulations make tax implications much more difficult for maintaining compliance, and these can become tiresome and headache causing hurdles to encounter along the way. Some may even require accounting assistance.

Things such as KYC (know-your-customer) and AML (anti-money laundering) regulations are also tightening, and this will require freelancers to 'jump through hoops' for identity verification and transaction limits. 

The chief research officer at Coin Bureau, Daniel Krupka, noted that unlike simple fiat currencies, crypto throws a wrench into the equation. He noted:

 

“Whereas it’s easy to calculate how much you owe in taxes with fiat payments, it’s less easy with crypto payments, particularly volatile cryptos like BTC.” 

 

As crypto is considered a capital gain then Krupka made an emphasis that the tax headaches, especially given the volatile nature of cryptocurrencies, then it may well outweigh the initial appeal of crypto payments for freelancers.

Daniel Fayemi, a backend engineer at Bitvavo, noted that converting the cryptocurrency into cash, known as off-ramping, can become a challenge for some depending on their location. He noted that in the Netherlands there are strict regulations for the amount of money someone can exchange without providing personal details.

The co-founder at DeCential Media, Matthew Leising, noted that stablecoins can offer an excellent option for freelancers who understand and are familiar with the make up of the crypto space. He noted they are also quite simple and straightforward for newcomers. They will give the opportunity to earn a respectable yield but could pose problems for the freelancer’s bank, which may be hesitant about facilitating crypto transactions or converting cryptocurrency earnings into fiat currency such as the US dollar.

 

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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