Without a doubt, bitcoin has grown in popularity in recent years. There are several types of cryptocurrency, including Bitcoin, Ethereum, Dogecoin, and many more. So, while the phrases cryptocurrency and Bitcoin are sometimes used interchangeably, they are not the same. Bitcoin is not the only sort of cryptocurrency; there are others.
Taking your payment in cryptocurrencies
You may have seen stories about celebrities and other well-known persons receiving their income in bitcoin. Incoming New York City Mayor Eric Adams has revealed that he would accept his first salary in cryptocurrencies. Aaron Rodgers and Odell Beckham Jr., two NFL players, also accepted portion of their compensation in Bitcoin.
If you’re thinking about getting paid in bitcoin, there are a few things you should consider. The first is that your company may still pay you in US dollars (or the local currency where you reside). You’ll just turn those money into bitcoin. That is, while you will receive a return if the value of your cryptocurrency increases, you will also carry all of the risk if the value decreases. NFL star Beckham may have discovered this when some commentators believed that his $750,000 paycheck had decreased roughly 40% when the price of Bitcoin fell.
Another thing to keep in mind is that when you read about celebrities receiving payment in Bitcoin or another cryptocurrency, it’s possible that they’re being sponsored by a cryptocurrency firm. So Aaron Rodgers or Odell Beckham may have a sponsorship contract that allows them to earn extra money by promoting a certain type of cryptocurrency that the average person does not have access to.
Investing in cryptocurrencies through your 401k
Another way that bitcoin is growing more popular is through its inclusion as an investment choice in your 401(k). Many 401(k) administrators provide a choice of investment alternatives, with a rising number of programs also include bitcoin as an option.
Keep in mind, however, that cryptocurrency has traditionally been a highly volatile investment, with big swings both up and down. Depending on your risk tolerance, you may not want to invest all of your retirement savings in cryptocurrencies. A better method could be to invest a portion of your 401(k) or IRA in bitcoin while keeping the rest in traditional asset classes such as equities or bonds.
In Conclusion
Cryptocurrency has grown in popularity in recent years, and a growing number of firms now allow employees to be paid in cryptocurrency. This includes the option to receive some or all of your pay in bitcoin, as well as the ability to invest in cryptocurrencies through the company’s 401(k) plan. Before you invest in cryptocurrencies, be sure you understand the dangers and rewards, as well as how they fit into your risk profile.
