Should You Accept Payment In Cryptocurrency As An Employee? Concluding Part
Receiving payment in crypto has so many benefits but it also has disadvantages you should know about before accepting. And although it has received huge attention and has become incredibly popular among youths these days some countries are yet to acknowledge it because of the huge threat it poses to the centralized financial community. This is just one of the many reasons why you should think twice before accepting payments in cryptocurrency. Here are four reasons why accepting cryptocurrency as payment might not be so cool.
Volatility, If you understand the crypto space very well you'll understand that it's volatility is one that cannot be escaped. Cryptocurrencies don't have fixed values and so your $100 worth of coins could become $50 worth in a few days or even less . Cryptocurrencies can sink just as low as the rise in a few days, weeks or months depending on the demand to supply volume or "big whales". This makes it even harder to make future plans due to their fluctuating values and this could only get better if payments were made in more stable currencies.
The crypto market is not regulated by any financial institution or even any central financial institutions. Well this can be attributed to the fact that it posese huge threat to centralization and also the reason why most governments refuse to recognize it. This exposes holders to just any threat meaning there are no rules or insurances in place to protect your coins or token should anything happen unless the digital wallet authority takes responsibility and compensates you. Making you are more vulnerable to cyber attacks like hackers and scammers. Plus a sudden announcement by the Central financial institutions might render all your tokens useless or require you to sell them off at once even if you would be selling at loss.
Your money could be lost or orphaned forever. As humans we tend to make mistakes and deleting your virtual wallet can be one of them or even forgetting your pass keys. By forgetting your pass keys, your tokens or coins would be in the system forever without anyone to claim them or you could loose it all by mistakenly deleting your account. This can although be prevented by backing up your pass keys or by putting up as much security measures possible to protect your wallets from strangers or loved ones who might mistakenly delete your wallets while using your phone.
They will always be digital. For some of us the feel or smell of new money can be very satisfying but you would never be able to feel that with cryptocurrencies. They can't be used to carry out physical transactions because you have to swap them for fiat currencies to make physical transactions. Meaning you would still have to pay certain fees to convert your cryptocurrency into fiat currencies.
No matter what you decides to do , it is important that you weigh your options carefully to decide which side would be of more advantage to you.