During 2021 a number of high-profile professional athletes and politicians announced they were taking full or partial salaries in Bitcoin.
Why would anyone do this? The answer is Bitcoins long-term performance. Why does it matter? Recruitment and retention. The ability to pay portions of salary in Bitcoin will matter to employers when it starts to be the difference maker in key recruitments or when core team members start asking for this accommodation or looking for employers who are offering it elsewhere.
Integrating the option for full or partial compensation in Bitcoin gives your organization a competitive edge in getting ahead of the curve. Bitcoin payroll solutions make integrating this process simple.
We believe that over the next decade getting paid in Bitcoin will become the norm rather than the exception. Employers ability to accommodate this request during key recruits could soon be the difference between landing that choice candidate and having them choose to work elsewhere.
Should Bitcoin continue its track record of outperforming other assets, portions of salary allocated to Bitcoin could represent a significant boost to compensation over time.
Having a recurring payroll deduction towards Bitcoin purchase solves a few problems for staff. It removes the effort required to transfer personal funds to a Bitcoin retailer and navigate sending those Bitcoin to a personal wallet. Many people also find saving much easier when it is done at source. Payroll deductions are a great way to help employees pay themselves first.
Bitcoin can be a lot to bite off as an idea. It is for most a very foreign concept when first introduced and requires some effort to understand. Introducing Bitcoin in the workplace is a great way to motivate your staff to learn about this emerging technology and get up to speed with the evolution in commerce it will create.
Understanding how Bitcoin can provide protection from inflation when its price is constantly changing is an abstract concept most outsiders to Bitcoin struggle to make sense of.
One way of viewing Bitcoins price appreciation over the last 14 years is in terms of its exchange rate between currencies like the Canadian dollar. 14 years ago $1 bought you 1 Bitcoin and the cost of 1 Bitcoin in Canadian dollars has been over $20,000CDN for the last three years. The Canadian dollar has lost 99% of its value in Bitcoin over the last 14 years.
Inflation in Canada means that a $1 buys you less of everything. Less gasoline, less eggs, less housing. Bitcoin on the other hand because of its price appreciation is gaining purchasing power. The price of an average home in BC in 2016 was 600 Bitcoin, in 2022 it was 40 Bitcoin.
Bitcoin is an ideal solution for employees working abroad or team members who are looking to send funds back home. The Bitcoin network is much faster and cheaper than international wire transfers with final settlement in minutes and for pennies.
Bitcoin is also much more broadly accepted in other parts of the world, particularly the developing world where payment networks are not as robust, and government currencies are more volatile.
The Lightning Network is a layer atop the Bitcoin blockchain enabling faster, cheaper transactions off the main chain. It supports micropayments, scalability, and seamless navigation of payment channels. Lightning transactions are still Bitcoin-based and can be exchanged at any time. This allows for innovative payroll options like lightning payroll, offering new ways to remunerate staff.
Bitcoin stands out as the premier digital currency choice for businesses entering the realm of cryptocurrency payments. Its unparalleled attributes make it the optimal selection, particularly for enhancing recruitment and retention efforts. Over its 14-year tenure, Bitcoin has exhibited remarkable resilience amidst market fluctuations, consistently maintaining its status as the foremost digital currency. With its unique combination of decentralization, price stability, and widespread adoption, Bitcoin emerges as the sole contender worthy of consideration in the corporate landscape.
The Lightning Network is an additional layer atop the Bitcoin blockchain, enabling users to establish payment channels for conducting transactions independently of the primary blockchain. Despite taking place off the main blockchain, these transactions still leverage the security and decentralization features inherent in the blockchain. Referred to as off-chain transactions, this secondary layer contributes to enhanced speed, reduced costs, and improved scalability for the broader Bitcoin network.
The Lightning Network exhibits remarkable speed, capable of handling 1,000,000 transactions per second, a stark contrast to the main Bitcoin blockchain's 7 transactions per second. Offering cost-effective solutions, the network enables economical payments of any size, mitigating the often high fees associated with Bitcoin transactions. This affordability facilitates everyday micropayments in Bitcoin for items like coffee or pizza. Additionally, the Lightning Network's scalability allows users to navigate payment channels seamlessly, enabling transactions between interconnected parties without the necessity of opening new payment channels, enhancing overall flexibility and efficiency.
Yes, Satoshis on lightning can be exchanged for Satoshis on the base chain at any time.
Because lightning transactions are faster and cheaper, lightning payroll options create new ways for remunerating staff. Depending on the goals of the organization, and the preference of the users one option might make more sense than another, or you are free to offer your staff both.
Bitcoin is a transformational financial tool that works differently than the financial tools we are used to. It's a big change! We are here to help at every step of the way and make this leap forward as simple and straightforward as possible.
Building Bitcoin into compensation and rewards will position your organization today, to recruit and retain staff in the economy of tomorrow. Why wait? Get started with submitting some basic info below. A Block Rewards team member will reach out shortly!
Welcome to Block Rewards! Headquarter based in Kelowna, BC, we're dedicated to helping Canadian employers seamlessly integrate Bitcoin into their compensation, benefits, and retirement plans. As a registered Money Services Business (MSB) with FINTRAC, trust us to lead the way in compliant, innovative solutions. Join us in shaping the future of finance, one block at a time!
