A large number of companies are stepping ahead to paycheck their employees with cryptocurrency. Hence, the concept might be alluring to some organizations. But, there are numerous adversities for the extensive adoption of such prospects.
Employees who add their income on digital apps and work on their schedule can dwell in a dynamic way than their old-style worker counterparts. Probably, they might be waged with new kind of money.
Some various firms are establishing payment platforms and cryptocurrency exclusively for the sharing economy. Because they believe that the sharing economy possibly serves as an experiment for accommodating cryptocurrency as major kind of payment.
These firms have to persuade the worker to ensure the unpredictable sphere of cryptocurrencies.
People will also have to involve in the process of conversion of their cryptocurrencies into cash. In order to use their earnings. Because most of the establishment don’t trust with the reality of the Bitcoin.
Obviously, the Bitcoin owner needs to pay income tax- after some math.
Selva Ozelli, a CPA, and lawyer said about cryptocurrencies that
“A taxpayer who receives cryptocurrency as payment for goods or services must, in computing gross income. Including the fair market value of the cryptocurrency, measured in U.S. dollars, as of the date that the cryptocurrency was receiving”.
“Payments using cryptocurrency made to independent contractors are taxable. These employers must issue a 1099 to their contractors, but an employer can’t enter 1,000 Bitcoin on IRS Forms 1099.”
Considering the volatility in the cryptocurrency market, Assistant Professor of the University of Connecticut’s business school, Niam Yaraghi, understands that paycheck in terms of Bitcoin will make the employees life riskier.
“If I say this year I’m spending one-tenth of a Bitcoin on office supplies, how much will I be spending next year in Bitcoin? I don’t think there’s anyone in the world who can answer that question. It’s very, very dangerous,” Yaraghi says CNBC. term
Freelancer’s Union survey in 2014 found that one in every two freelancers had adversities in getting payment. Thus pausing almost 100 days to obtain compensation or never getting paid at all. Despite, the sharing economy gradually increasing from $14 billion in 2014 to the estimated value of $335 billion by 2025, according to the Brookings Institution.
Chief Executive Officer of Thor Token, David Chin said
“I have spoken with freelancers in the past that have had a lot of trouble tracking down payments for jobs they had already completed. Leveraging the blockchain seemed like an obvious solution to this problem as it can facilitate secure, instantaneous payments at the completion of a job.”
The aim of the David Chin’s platform is to offer gig economy workers traditional advantages including health insurance and retirement accounts.