How Bitcoin is Superior for Remote Work and Payroll

Remote work is on the rise. Individuals around the globe are taking their businesses online and offering their services on freelance platforms. With a new revolution comes a new challenge. International invoicing for businesses and individuals. And that's where Bitcoin and cryptocurrencies come in.

How has Bitcoin changed the game, and why do people choose Bitwage as the leading platform for international payroll? Dive right in below!

📌The Advantages of Paying Remote Workers with Bitcoin

For the sake of examples and so it doesn't get extensive, let's keep it to why cryptocurrency is the best for a business with remote workers or an individual working overseas. No one wants to read all my "Why blockchain is the best tech ever" banter anyway😂.

Accessibility and Ease of Transactions with Bitcoin

One of the key selling points here is that Bitcoin transactions are borderless and seamless and do not have the hassle of traditional banking systems, like the inability to do business with some countries or that everything must be done between "business hours".

This enables employers to pay employees whenever, wherever. With the adoption of Bitcoin and cryptocurrencies taking place, there are a ton of different coins to choose from, from Bitcoin to Ethereum or even stablecoins like USDT. Bitwage further simplifies this by managing payroll for you. The remote worker chooses if they want crypto, local currency, or a mix. You, as an employer, send an ACH or Wire transfer, and voila, Bitwage does the rest.

How Bitcoin Reduces Transaction Fees

Cryptocurrency transactions are cost-effective, unlike banking systems which effectively-cost you. Pun-intended.

Banks have various fees. Fees are based on incoming and outgoing transactions. Cryptocurrency only has outgoing fees. Some bank's fees go as high as $50 per wire transfer!

If you want to read more about bank wire transfers, check out NerdWallets post.

Bitcoin’s Global Reach and Simplified Currency Conversion

If you are paying remote workers abroad, you must research where your workers live and how their currency works. You can't simply send USD from the United States to Argentina without first understanding currency conversion. In Argentina, there are so many different types of USD currency. Dollar Blue, Official Dollar, Stocks Dollar, they even have a Dollar exclusively for Rock concerts called Dollar Coldplay Cryptocurrency eliminates the need for currency conversion by sending and receiving the same currency. Simple, you send Bitcoin, you get Bitcoin, you send USDT, you get USDT.

Security and Transparency in Bitcoin Transactions

Unlike traditional banking methods, Bitcoin ensures secure and transparent transactions. That's because most cryptocurrency transaction data, with some exceptions like coins referred to as "Privacy-coins", are stored on a public ledger called blockchain, making transactions transparent.

Blockchain technology ensures security as well. Once it's confirmed on the blockchain there is no reversal. You and your counterparty are the only ones involved in the transaction. No middlemen, no bank, no institution, just you and the person you are sending to.

Bitwage as a non-custodial service also offers this security. Remote workers can earn their salary in Bitcoin, Altcoins or local currency, and your employer doesn't even need to know you are getting paid in Bitcoin or crypto. For employers, through Bitwage, you just send an ACH or Wire transfer.

Read more about how Bitcoin transactions work and how they are recorded on a public ledger.

A Step-by-Step Guide to Paying Remote Workers with Cryptocurrency

Ok, so you want to start paying your freelancers or remote workers in crypto? Great! Now comes setting everything up.

Here are the steps you must take to set yourself up for success:

• Choose the Right Cryptocurrency
  From Bitcoin, Ethereum, USDT, USDC, or meme-coins, choosing a currency is a process. Check if the cryptocurrency is volatile, its gas fees, and how complex the currency is. To name a few that must be taken into account.
• Set Up Digital Wallets
  You'll need a digital wallet to send to your employees, and they will need one. There are a ton of different wallets to choose from, either custodial wallets or non-custodial wallets, to hardware or online wallets. Make sure you choose the right one based on your needs. Here is an article about digital wallets worth a read.
• Educate Your Employees on Crypto Payments
  You have to make sure your remote workers or freelancers understand how crypto works and how they can set up their digital wallets if they don't have one. Give your employees or freelancers resources. Support them in the setup process as well. Here is the only guide you need to find the best crypto wallet.
• Agree on Payment Terms and Conditions
  Agree on which currency your employee would like to receive. It's also good to define if payment will be variable based on the current market price or a fixed amount. Take into account exchange fees, transaction fees, and any tax implications involved.
• Collect and Verify Wallet Addresses
  These addresses are like bank accounts. They are used to send and receive payments. When sending a payment, double-check and see if it's on the right network. Be it on the Bitcoin Blockchain, Lightning network, Ethereum, or others. Transactions on the blockchain are irreversible, so make sure you check everything before sending.
• Send Payments and Confirm Transactions
  Sending payments to each one of your employees will be a bit time-consuming. Make sure to double-check. Make sure you have the correct wallet address, the payment date, and the payment amount as well. You cannot send Bitcoin to a non-Bitcoin wallet address. If you do, your funds will be lost. I repeat transactions on the blockchain are irreversible. Double-check before you send.
• Maintain Detailed Records
  Maintain detailed records for accounting and taxation where applicable. Include everything possible, from transaction dates to amounts, and also take note of any transactional fees. The more you keep in record, the better.
  

📌How Bitwage Simplifies Cryptocurrency Payroll

Businesses are turning to non-custodial services like Bitwage because they don't want to go through the hassle of setting up a cryptocurrency payment method.

Bitwage simplifies the process of paying remote workers abroad by:

Flexibility

Let employees choose the currency of their liking. You do not have to research gas fees, complexities, or if a token price is stable. You as an employer simply send a wire or ACH transfer.

Security

Unlike other payroll platforms, Bitwage is Non-Custodial. We do not hold employer or employee funds. Bitwage does not offer banking or wallet services either. We help your employee receive their salary in whichever currency they decide to receive in, with no extra or complex work for you.

Crypto Knowledge

If your employee decides that they want to receive part of their salary in Bitcoin. You, as an employer, don't have to know, own, understand, or manage cryptocurrency at all. Bitwage does all the work for you while guaranteeing that your employee receives what they want.

Support

To top it all off, if you are having issues, Bitwage has personalized support. None of those automated support messages where you are writing to a machine. At Bitwage, you talk to a real person. By your favorite means of contact. Be it through email, phone, or even through Whatsapp messages. We got you covered.

📌Challenges and Considerations in Cryptocurrency Payroll

While crypto and Bitcoin payments offer plenty of upsides, Cryptocurrency is still in its infant steps. As time goes by and the Crypto-space evolves, some of these may become obsolete.

Addressing Volatility in Crypto Payments

Cryptocurrency's volatile nature poses risks for employers and remote workers.
Since Bitcoin is traded on the open market, sometimes you can see the price move up, and sometimes you can see it drop in price. When it comes to an employee-employer relationship, it can get messy if your employees receive less than expected.

Lucky for us, this is a thing of the past. There are options known as stablecoins.
Stablecoins offer a 1:1 peg to its physical (also known as Fiat) currency. Which gives individuals and companies, the ability to send tokens that do not fluctuate on the market.

Bitwage offers stablecoins (USDT, USDC, and others) to mitigate this risk. While also allowing employees to choose to receive their salary in Bitcoin, stablecoins, and even local currency. This not only mitigates the volatility issue but also allows employees to hedge their salary to escape local currency inflation or possible roadblocks with receiving an international wire transfer.

Interested in stablecoins?

Navigating Legal and Regulatory Challenges

Navigating cryptocurrency regulations can be complex. Since Bitcoin and blockchain are rather new technologies, each country may have different legal and regulatory actions. When paying internationally, it is the employer who must research and learn how each country works.
For example: In the US, the SEC, CME, CFTC, and FIRA are all involved in regulation in some regard. Yet private peer-to-peer transactions are not regulated in any sort. While in Argentina, at the time of writing this, there are no specific regulations when it comes to cryptocurrency.

Check this article which talks more in-depth about regulations in the US, EU, Japan, China, etc.

Understanding Tax Implications for Crypto Transactions

Cryptocurrency transactions, like most financial transactions, have intricate tax implications. Due to cryptos' natural volatility, if you sell or use your crypto, and it is worth more than when you bought it, you have to pay taxes. That's because you trigger capital gains or losses if its value changes, just like on other assets. If you receive crypto as payment for your business, or service, it's taxed as business income. So yes, taxes are everywhere, even in crypto.

Want to learn more about taxes and different types of workers? Check out this blog post

📌Conclusion: Embracing Bitcoin for Global Payroll

Despite challenges like volatility and regulatory considerations, the benefits of accessibility, cross-border transactions, and low fees outweigh the challenges. Adopting cryptocurrency payments enables businesses and individuals to overcome geographical barriers and navigate international commerce effortlessly.

Paying international wages with cryptocurrency can be a hefty task, but it's well worth it. It is accessible to anyone around the globe, has low fees, and avoids traditional banking roadblocks.

For me, this is just the first layer.
Understanding how Bitcoin works and how it can benefit individuals and businesses all around the globe is something to treasure on its own.

Cryptocurrency is the future of finance, and Bitwage is the future of crypto payroll.

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