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You should not attempt to make this sale. Serious companies will not pay you in Bitcoin. Serious companies disproportionately can actually attempt to pay mark
by patio11 13y ago
You should not attempt to make this sale.
Serious companies will not pay you in Bitcoin. Serious companies disproportionately can actually attempt to pay market rates for engineering services. Signaling desire to be paid in Bitcoin tells serious companies "I do not wish to do business with serious companies." and, while it won't convince them to pay you in Bitcoin since no power under earth or heaven will do that, it might convince their decisionmakers to go with someone who is not a joker for their professional services. This will cause you to systematically get paid far below-market rates for your services.
Why won't serious companies pay you in Bitcoin? Let us count the reasons:
1) Why should they? They already have a bank account, which can issue checks and wires. This is what they use to pay substantially everyone.
2) They have layers of processes and scar tissue built up around payments, precisely to make sure that something like "And then the bookkeeper looted 80% of our assets without us knowing it" could never happen. None of these processes contemplate Bitcoin. They're the bones and sinews of the company. You will not succeed in changing them from the outside. As tptacek how likely you are to even alter fairly inconsequential details of a large company's procurement process, like how long it takes them to physically issue a physical check which all parties know only actually takes a minute of typing and Ctrl-P to create.
3) Serious companies have serious professional advisors like lawyers and accountants, and serious professional advisors are very risk adverse. They're going to come up with all sorts of perfectly serious reasons why issuing payments in Bitcoin is a high-risk low-reward activity. For instance, in Japan, you need to keep your books in yen. That's non-negotiable. Even if the numbers you use for management of the company in something really exotic like dollars, the official books must be in yen, and the National Tax Agency will occasionally ask you for line-by-line justifications. Your accountant is going to hear "Bitcoin transaction" and start trying to fit that into double-entered yen based bookkeeping, and if he actually understands what Bitcoin is doing, he's going to say "This sounds like a whole heck of a lot of work. Why don't we just pay them via wire transfer like we always do? Also, I'm having difficulty valuing 100 BTC for the purpose of paying withholding taxes on our payment to him. I sort of don't want to lose my license for assisting with tax evasion -- can we please pay with a wire transfer?"
If you desire to speculate in Bitcoin, you can acquire it in the same fashion as you buy Magic Cards, Beanie Babies, or shares in Google: get paid in dollars, then buy the thing from people who sell it for dollars. (I would feel negligent if I did not say "But you should not speculate in Bitcoin.")
- trevelyan 13y agoI pay some of my staff in bitcoin... it is cheaper and easier than using Paypal to be honest, and significantly, significantly cheaper than dealing with international wire transfers. And when they need cash they can sell at a markup using localbitcoins. Yes, I also have a small business without "layers of processes and scar tissue built up around payments," but is this really the community to trash startups? The easiest answer to the parent poster's question is to offer a slight discount for bitcoin payments. Or just accept cash and use that to purchase bitcoins as needed. Doing a bit of SEO work around bitcoins can also make your business more visible to people who want to pay using it. I currently pay for some server infrastructure in BTC as well, and found those companies through web searches.
- emmett 13y agoYou really pay full time staff in bitcoin? What happens when the value of bitcoin varies by more than 2x in a short period vs local currency? How do they afford rent? If you're just using it as a transaction medium (give them $6000 per month, transfer as BTC, immediately change back to dollars) that would avoid the issue I suppose. But how is that better than direct deposit in any way?
- trevelyan 13y agoNot full-time staff, and it isn't their main source of income. The alternative is international wire transfer, which would cost me 30 USD and them a portion of the payment as well.
- trevelyan 13y agoPart-time not full-time staff. The alternative is an international wire transfer that would cost me about 30 USD and them around 10 USD.