We pay employees in bitcoin and it’s awesome!

bitcoin-salary

Of everyone I have raved to about bitcoin the only people I know who became bitcoiners are people I offered to pay in bitcoin.

We receive 100% of our income in Bitcoin so when I hired a freelance developer overseas I asked if he would accept payment in bitcoin. The standard method would have been through the freelancing website which would have taking 10% and 3 business days for payment.

He agreed to give it a try and it was a huge win for us both. The minute his pay was due he got it instantly, with no fees, internationally! I have since repeated this with another developer.

All business should be doing this, especially those with staff overseas. To pay wages internationally via bank to bank transfer takes 4-5 business days, a fee of $25 and a 1% loss on currency conversion. With a government currency remittance service it can be fast but costs 5% – 15% of the transaction and requires the recipient to go to a physical location to pick up their pay.

Payroll managers mind’s are going to be blown when this catches on. When someone asks how to get bitcoins please answer that the best way is to offer a good or service, such as your job, and accept bitcoin for payment. When you are wondering how to convince people to adopt bitcoin offer to pay them for something in bitcoin.

Because the developers are awesome and accept 100% of their salary in bitcoin it has become ongoing employment. Now all of Bitedge’s revenue is in bitcoin and all of our expenses are paid in bitcoin. We are just another bitcoin success story. Thanks to everyone who has got bitcoin to this point.

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5 Comments

  1. Smiling Dave 3 years ago

    So he gets the same amount of bitcoins every pay? Or does he have a salary in dollars?

    I’m wondering because if he was paid 100 bitcoins a month, say, since December, then his current salary is a third of what it used to be. 100 bitcoins now are worth a third of what they were, and I’m interested in your reasoning of why they will not fall further.

    I also don’t understand why you are giving away your valuable bitcoins, that you think will go up in price, to him. Or is this just your sly way of unloading them on the sucker before you lose even more by hanging onto them?

    I’m also very curious what he buys with all his bitcoins, since I’ve seen people complain there is nothing to buy with them. How does he pay his rent, his mortgage, his student loan, his supermarket, his has station? Do they also accept bitcoin now?

    • Author
      James Canning 3 years ago

      The price in USD is the least interesting or important thing about bitcoin. 1 developer is comfortable with the changes another converts to his local currency and uses BitReserve.

      > “I’m interested in your reasoning of why they will not fall further.”
      Because bitcoin is the best money ever invented and demand will exceed supply.

      > “why you are giving away your valuable bitcoins”
      I am not giving them away, I am exchanging them for a good or service that I value.

      > “How does he pay his rent, his mortgage, his student loan, his supermarket, his has station? Do they also accept bitcoin now?”
      Yes; all those things can be paid for with bitcoin in Australia (details) and the Philippines (details) 🙂

    • Ergophobe 2 years ago

      I wouldn’t call that a smile Dave, more like a smug grin. 🙂 Let me get rid of that for you.

      So, for now, most companies are not denominating salaries in Bitcoin, for a couple of reasons.. One of which is that their products are not priced in Bitcoin. They may accept bitcoin as payment, but generally speaking, products will be priced in fiat, because that’s the currency that’s used to purchase them. This may change if and when Bitcoin becomes more widely accepted and the price becomes more stable, but for now the accounting is just simpler when you stick to a single currency.

      That said, over the last 6 months or so, the price has been pretty consistently between $250 US and $300 US. Narrow this spread down a little more (so that it ranges within about $25) and let that trend run for a year or two, and I think you’ll start to see contracts being drawn up where the salary/price is BTC denominated. But I don’t expect that to happen any time soon. Bitcoin is still in its infancy and doesn’t yet have the liquidity necessary to support an entire global economy denominated in BTC.

      The second reason is as you said. The exchange rates tend to go up and down wildly. Yes, we’re down significantly from December 2014 (and I know you’re using that as your argument against Bitcoin even though it’s flawed logic). We’re also UP significantly from August 2014. It doesn’t matter where you draw the “starting” point, if you draw one at all and create a contract for employment based on that point, you’re running a huge risk that the price will shift against you. Unless the contract is written such that the salary is adjustable based on the exchange rate (at which point why not just denominate the contract in fiat), then one party will almost certainly lose out in the deal.

      As for why someone might spend their valuable Bitcoins when he believes they will go up in price, I should ask you why you save your dollars when you know they’re going to lose value.. The US dollar has lost over 90% of its value since we came off the gold standard in 1971. The answer is simple. We have to. If we don’t spend our money, then it’s not useful AS money. If you store your dollar bills under your mattress and leave it there long enough it becomes worthless paper. If you store your bitcoin in a cold wallet and never touch it, it does you no good either. If you’re smart, you save what you can and spend what you need.

      In answer to your dig regarding what employees can purchase with their Bitcoin… there’s actually quite a lot available for purchase online that can be shipped anywhere in the world. And depending on where the employee lives, there may even be local merchants who accept it. The numbers keep growing. And there is almost certainly at least one person wherever they live who they can trade with for local currency for those expenses that can’t yet be done in Bitcoin. But most people, when they see how easy it is to actually use BTC directly do so as much as possible, so it’s not terribly difficult to convince someone to accept it, if you try.

      I’m paid in Bitcoin (denominated in USD). Based on my own personal experience, over the last 6 months or so I have been able to live quite happily converting only a small portion of my income into USD — enough to pay the bills and buy food. I do most of my shopping online with Bitcoin. The rest stays in BTC until I need to convert it or spend it.

  2. schmichael 1 year ago

    “rather than through the freelancing website which was a slow and expensive middle man”

    Surely that’s against the terms of service of the site? It sounds like Bitcoin’s main use case here is avoiding following the rules of the service you’re using.

  3. King 3 weeks ago

    It’s a joy to find someone who can think like that

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