Can you imagine if your employer didn't have to pay you in your local currency but could pay you directly in Bitcoin? Well, guess what—Oklahoma is on the verge of making that a reality!
Welcome to the Block Rewards Blog! If you’re an employer or employee looking to unpack how Bitcoin is reshaping the world of compensation, you’re in the right place.
The US has consistently led the way in Bitcoin innovation, with states like Texas and Pennsylvania already paving the path for strategic Bitcoin reserves. Now, Oklahoma is stepping up. Senator Dusty Deevers of Oklahoma has introduced a new bill, SB325, known as the Bitcoin Freedom Act, to simplify paying vendors in Bitcoin and allow employees to receive wages in Bitcoin within the state.
In a press release, Senator Deevers' office highlighted Bitcoin's potential to "protect earnings and investment." Media reports further clarified that adopting Bitcoin for wages or vendor payments would be entirely voluntary, driven by grassroots demand rather than mandated by government policy. This approach empowers businesses and employees to choose what works best for them, aligning with the freedom-focused ethos of Bitcoin.
This begs the question, Why does Bitcoin compensation matter?
Bitcoin has been the best-performing financial asset of the past decade, far outpacing inflation and traditional investments. *Mic drop*
Over the past 13 years, Bitcoin has delivered average annualized returns of 109%, significantly surpassing the performance of major stocks like Amazon during the same period. An investment in Bitcoin on January 1, 2015, would have grown an incredible 317 times by January 1, 2025.
Even more significant, interest in Bitcoin as part of employee compensation is growing. Studies suggest that up to 50% of workers would prefer to receive a portion of their wages in Bitcoin or other cryptocurrencies, signalling a shift in how people view financial rewards and savings.
That said, it hasn't all been rainbows and butterflies. The media's focus on Bitcoin's price volatility has created fear and doubt, especially for those lacking conviction. However, those who stayed committed and managed to ignore the countless 'Bitcoin is dead' headlines have been rewarded handsomely.
Am I too late to the Bitcoin party?
A common concern among those considering Bitcoin is, "I've missed the boat. The time to invest was 10 years ago." While it certainly would've been great to invest back then, the truth is there's no better time than now. For those who feel they've missed their chance, consider this: in 2024, Bitcoin posted a 121% return, making it the top-performing asset of the year (Image 1) and outpacing every major hedge fund globally (Image 2).
Image 1 - Market Performance (Source: X: @agttactical)
Image 2 - Hedge Fund Returns 2024 (source: X, @mason_jappa)
To put it in perspective, these hedge funds employ some of the world's brightest minds—top economists, financial strategists, and Nobel Prize winners. Yet, if you had simply held Bitcoin from the start of 2024, you would've outperformed every one of these top-tier investment firms.
You might be wondering, "If all of this is true, why haven't more companies adopted Bitcoin treasuries, payments or salaries?"
In short, the uncertain regulatory landscape and lack of clear solutions have been major hurdles. One key challenge in the US has been how Bitcoin holdings were accounted for on balance sheets. Until now, companies have been required to follow the "impairment model," which means they have had to record Bitcoin at its lowest value since purchase, even if it later recovers. This made it harder for companies to reflect the true value of their holdings.
However, with recent changes by the Financial Accounting Standards Board (FASB), companies can now report Bitcoin at its current market value, just like stocks or other financial assets. This update allows for more accurate financial reporting and provides companies with a clearer view of their Bitcoin assets.
Essentially, companies eager to adopt Bitcoin have found themselves navigating the complexities on their own, which is why we, Block Rewards, decided to enter the ring. Bitcoin holds incredible potential, yet there's a clear gap in compensation, benefits, and rewards tools designed to help companies empower their teams with the advantages Bitcoin offers.
More importantly, the regulatory environment is shifting in a positive direction. Laws like Oklahoma's Bitcoin Freedom Act pave the way for companies like ours to enhance Bitcoin compensation, benefits, and rewards. This allows employers to offer their employees better wages and additional support, even if they can't increase salaries. As more regions establish clear frameworks, both employers and employees will benefit from new Bitcoin opportunities and financial tools.
To wrap up, we wanted to address one final question: How likely is the law to pass?
The Bitcoin Freedom Act is set to be considered during the 60th Legislative Session, starting in February. Sen. Deevers, a member of the Republican Party, represents the state of Oklahoma, which has strong Republican majorities in both the House and Senate. Governor Kevin Stitt has already demonstrated his support for Bitcoin, signing the "Bitcoin Rights" bill into law with bipartisan backing, including support from Democratic members like Rep. Ranson and Rep. Deck. Given this momentum and the widespread bipartisan support for Bitcoin-related legislation in Oklahoma, it seems highly likely that the Bitcoin Freedom Act will pass and become law.
All in all, as favourable Bitcoin regulations continue to emerge and businesses gain more resources to implement Bitcoin compensation, there's never been a more opportune moment to explore how Bitcoin fits in with your business operations.
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The future is bright!
The Block Rewards Team