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The only reason you wouldn't want to be paid in bitcoin is if you were worried about volatility, since Bitcoin can go down in the short term, by as much as 50%.

The only reason you wouldn't want to be paid in bitcoin is if you were worried about volatility, since Bitcoin can go down in the short term, by as much as 50%. There would be otherwise no additional concerns with getting paid in Bitcoin, as you would simply sell enough Bitcoin from your weekly paycheck to cover the taxes (same way that stock grants are handled).

JamesBarney 6y ago
You're right that volatility would be a large issue too. But I also don't want to be the accountant that's trying to figure out the tax implications of a company that has 50 workers and 18000 line items denominated in bitcoin. Not to mention dealing with first in, first out accounting.
Volundr 6y ago
A few reasons I don't want paid in Bitcoin: * There are no proper, FDIC insured Bitcoin banks * Taxes are significantly more complicated * No 401K * Volatility * Lack of privacy * Need to convert to USD to pay my bills
- chrisco255 6y ago
  Taxes are easier to do now with automated tooling. You can also get VISA or MC debit cards that will automatically sell your crypto from say, your Coinbase account at point of purchase. You can invest in Bitcoin through an IRA. I believe most retirement funds are looking into adding Bitcoin as an investment option. Fidelity has talked a lot about this in recent months. You have far less privacy in the regular banking sector. FDIC deposits wouldn't make sense. Banks needed the FDIC system because they do fractionalized lending with limited reserves. Bitcoin cannot be lent out in this way. It's true you have to trust whatever exchange you store your coin in if you want convenience, but you can also quite easily store Bitcoin in a wallet that you control, and back it up with physical keys that you can store stamped on some titanium in a safety deposit box or wherever you like.
  - Volundr 6y ago
    > Taxes are easier to do now with automated tooling. You can also get VISA or MC debit cards that will automatically sell your crypto from say, your Coinbase account at point of purchase. That's a nightmare from a tax perspective. Every single one of those transactions is a taxable event. Imagine having a separate line on your taxes for each time you visit a fast food restaurant. > You have far less privacy in the regular banking sector. If I have your bitcoin wallet address I can see everything in it and everything you do with it. This is not true of banking. > FDIC deposits wouldn't make sense. Banks needed the FDIC system because they do fractionalized lending with limited reserves. Bitcoin cannot be lent out in this way. It's true you have to trust whatever exchange you store your coin in if you want convenience, but you can also quite easily store Bitcoin in a wallet that you control, and back it up with physical keys that you can store stamped on some titanium in a safety deposit box or wherever you like. With FDIC, I know if I deposit my money I can get it back. If the bank doesn't have it the government will cover it. If Coinbase loses my money, unless they have enough to cover it from other funds I'm hosed. There is no recourse. A wallet I control is even worse, now I'm entirely 100% responsible for the security of my wallet, and I'm not trained for that, nor do I have the resources to be truly effective.
andreskytt 6y ago
There’s the usability. You loose the key, the coin is gone. You use some un-regulated exchange doing stupid things and your coin is gone. You try to pay somebody and the transaction takes forever.
- chrisco255 6y ago
  Sure, well if you lose cash stored under your mattress in a house fire, or you leave a bag of money unattended on a sidewalk...or you do anything careless with things of value, you can and will lose those things of value. Bitcoin transactions take 10 minutes. That is a fully settled transaction in 10 minutes. When you Venmo somebody, it doesn't get fully settled until they actually withdraw to their account, which is at least a day.

JamesBarney 6y ago

You're right that volatility would be a large issue too. But I also don't want to be the accountant that's trying to figure out the tax implications of a company that has 50 workers and 18000 line items denominated in bitcoin. Not to mention dealing with first in, first out accounting.

Volundr 6y ago

A few reasons I don't want paid in Bitcoin: * There are no proper, FDIC insured Bitcoin banks * Taxes are significantly more complicated * No 401K * Volatility * Lack of privacy * Need to convert to USD to pay my bills

chrisco255 6y ago
Taxes are easier to do now with automated tooling. You can also get VISA or MC debit cards that will automatically sell your crypto from say, your Coinbase account at point of purchase. You can invest in Bitcoin through an IRA. I believe most retirement funds are looking into adding Bitcoin as an investment option. Fidelity has talked a lot about this in recent months. You have far less privacy in the regular banking sector. FDIC deposits wouldn't make sense. Banks needed the FDIC system because they do fractionalized lending with limited reserves. Bitcoin cannot be lent out in this way. It's true you have to trust whatever exchange you store your coin in if you want convenience, but you can also quite easily store Bitcoin in a wallet that you control, and back it up with physical keys that you can store stamped on some titanium in a safety deposit box or wherever you like.
- Volundr 6y ago
  > Taxes are easier to do now with automated tooling. You can also get VISA or MC debit cards that will automatically sell your crypto from say, your Coinbase account at point of purchase. That's a nightmare from a tax perspective. Every single one of those transactions is a taxable event. Imagine having a separate line on your taxes for each time you visit a fast food restaurant. > You have far less privacy in the regular banking sector. If I have your bitcoin wallet address I can see everything in it and everything you do with it. This is not true of banking. > FDIC deposits wouldn't make sense. Banks needed the FDIC system because they do fractionalized lending with limited reserves. Bitcoin cannot be lent out in this way. It's true you have to trust whatever exchange you store your coin in if you want convenience, but you can also quite easily store Bitcoin in a wallet that you control, and back it up with physical keys that you can store stamped on some titanium in a safety deposit box or wherever you like. With FDIC, I know if I deposit my money I can get it back. If the bank doesn't have it the government will cover it. If Coinbase loses my money, unless they have enough to cover it from other funds I'm hosed. There is no recourse. A wallet I control is even worse, now I'm entirely 100% responsible for the security of my wallet, and I'm not trained for that, nor do I have the resources to be truly effective.

andreskytt 6y ago

There’s the usability. You loose the key, the coin is gone. You use some un-regulated exchange doing stupid things and your coin is gone. You try to pay somebody and the transaction takes forever.

chrisco255 6y ago
Sure, well if you lose cash stored under your mattress in a house fire, or you leave a bag of money unattended on a sidewalk...or you do anything careless with things of value, you can and will lose those things of value. Bitcoin transactions take 10 minutes. That is a fully settled transaction in 10 minutes. When you Venmo somebody, it doesn't get fully settled until they actually withdraw to their account, which is at least a day.