Distributed by Financial Media Exchange.

Would You Agree to Be Paid 100% in Bitcoin?

Remember, you have no way of knowing if it will go up or down in value

Miami Mayor Francis Suarez said he would take his

paycheck “100% in Bitcoin” and has announced that

he is working on a plan to pay the city’s more than

4,000 employees in cryptocurrency.

New York City Mayor Eric Adams said he was also

considering ways in which the city’s 300,000+

employees could be paid in Bitcoin.

And already many companies are using cryptos as a

compensation strategy. But is it a good idea?

#PaidinBitcoin

Maybe you heard that NYDIG launched it Bitcoin

Savings Plan as part of its employee benefits

program? It’s marketing campaign is #PaidInBitcoin.

Here are excerpts from its recent press release:

“NYDIG, a leading bitcoin company, announced today

the launch of a Bitcoin Savings Plan to let employees

of leading companies get #PaidInBitcoin. A Bitcoin

Savings Plan is an exciting employee benefit program

that allows an employee to convert a portion of their

paycheck to bitcoin. The bitcoin is held on the same

secure, regulated NYDIG platform used today by

some of the largest banks and companies in the

world.

Among the first to offer the benefit are companies

owned by former NFL superstar Drew Brees, who will

also be using a Bitcoin Savings Plan to convert a

portion of his compensation to bitcoin.

Several companies Drew is involved with will also be

making the optional benefit available including

Everbowl and StretchZone.

“For a long time, bitcoin was pretty intimidating for

me. The more I have immersed myself in the

understanding of money, long-term value, and the

history of finance, the importance of bitcoin became

apparent,” said Brees. “That’s why I am using NYDIG,

a trusted leader in bitcoin, to allocate a portion of my

salary to BTC every payday, and why I am excited for

the businesses I’m involved with to make this an

option for their employees as well. In its 13-year

history, Bitcoin has been an inclusive vehicle for

wealth creation, and a Bitcoin Savings Plan is one of

the easiest ways to start saving.”

For the first time, employers can leverage the

power of bitcoin to help recruit and retain the best

employees with an innovative perk alongside

established benefits such as 401(k)s. Employees

choose what percentage of their pay they would like

to auto-convert to bitcoin, and NYDIG’s platform

makes the rest seamless. Bitcoin traded and held by

employees as part of this benefit does not incur any

transaction or storage fees and is stored in NYDIG’s

industry-leading, 100% cold storage system–known

as the safest way to hold bitcoin.”

NYDIG went on to say that in its own survey, they

found that “36% of employees under 30 said they

would be interested in allocating a portion of their pay

to bitcoin.

Distributed by Financial Media Exchange.

Nearly 1 in 3 of those employees said that when

choosing between two identical jobs at different

employers, they would choose an employer that

helped them get paid in bitcoin.”

But, will it catch on?

Should You be Skeptical?

Ignoring all the hype around bitcoin and other

cryptocurrencies, you have to know this: there is no

way of knowing if it’s value will go up or down in

value.

It’s very different from being compensated partly in

company stock – because at least with company

stock you can figure out the empirical value of a

company and make a determination as to whether

you think it is over- or under-valued (neither of which

necessarily points to company stock moving one way

or the other, but at least it’s a start).

But with Bitcoin, the supply is controlled by the

algorithm and the flip side that sets the price is

demand – and there is no way you can know what

that might be (or not be).

In addition, as Wall Street anticipates the Federal

Reserve to increase the fed funds rate by at least 25

basis points in mid-March, Bitcoin was off about 40%

from its peak. That kind of price movement could

leave you vulnerable.

Look at it this way: Your mortgage payment is likely a

fixed dollar amount that you pay monthly – could you

still make the mortgage payment if you’re monthly

paycheck drops 20% in value?