Cryptocurrency is a term that covers over 20,000 different coins and tokens, and each of them has their own set of functionality and utility. Since crypto payments rose in popularity, some employers started to give wage bonuses in cryptocurrency. There are multiple reasons why paying bonuses to employees in crypto like Bitcoin or Ethereum can be beneficial for both parties.
It’s also important to note that right now the crypto market is going through a decline in prices and volumes, which affects all funds that are kept or transferred in crypto. This is what investors call “crypto winter,” and it’s a repeated occurrence that last happened in 2017-18. This does not, however, imply that now is the wrong time for business owners to introduce cryptocurrency-based bonus payments. Let’s discuss what crypto winter is and why it might be a good idea for you to start paying your employee bonuses in crypto this year.
What is crypto winter 2022
Crypto winter is a term used to describe a prolonged period of time when the market is trending sideways after a rapid crash. That means that major cryptocurrencies like Bitcoin lose in price and volume, and all crypto coins are affected by this. Basically, crypto winter is when there isn’t much going on and the market sentiment is mostly pessimistic, which is similar to the way cold winters are in nature.
This year, a combination of factors could have affected the state of the cryptocurrency market. One of the major reasons discussed is an interest hike by the Federal Reserve. The decision was made to combat inflation in the United States, and it has subsequently caused a massive price downtrend in both the traditional stock and cryptocurrency markets. Since then, the markets have barely recovered due to investors’ extreme caution and a loss of interest.
However, this does not mean that the cryptocurrency market will remain in this state forever. Throughout the past decade, there has been a lot of progress made in the technology of blockchain and cryptocurrency. A lot of new individual investors got involved, as well as entities from various fields like government, medicine, and law. Digital payments have become the norm in a number of countries that have rolled out Central Bank Digital Currencies (CBDC).
Because this is familiar territory for experienced investors, a large number of them decide to keep holding their funds and buy more while the price is low. The cycle of the cryptocurrency market bears an inherent promise that the prices will go back up within the next year or two. Patience is the key here, and this is exactly what might work well for your business.
Why is sending bonuses in cryptocurrency now a good idea
There are multiple reasons to choose cryptocurrency for paying out wage bonuses, regardless of the current market situation. First of all, it can be a lot simpler than fiat currencies. If your employees live in different countries with different currencies, calculating and converting fiat currencies can be a long and costly process. Payrolls and bank managers might have to be involved in order for it to work. With crypto payments, it’s simply sending funds from one wallet to another. Then it’s up to the employee to keep it or convert it into the currency they use. The transactions are cleared within minutes, and the fees are much lower than most bank transfers.
It’s also a good move for companies that are involved in tech. Employees are usually supportive of innovation if it comes with a little bit of education on how to manage crypto and what benefits it can provide in the long term. While some companies give company stock to motivate employees, crypto bonuses are tangible and spendable funds that also have a high potential to appreciate in value.
Even for uninformed employees, a cryptocurrency bonus can come as an opportunity to get involved in the market and benefit from predicting the price trend. During crypto winter, prices are hovering over the same levels that are a significant decrease from prices before the crash. It’s reasonable to expect them to go back to the same level or even higher because this has already happened after previous crypto winters. So, the employees can make a decision to sell it while the volatility is low or hold onto the funds for a year or two until the market has recovered. This could multiply the bonus several times without any additional costs or work for the business.
How can you send crypto to your employees
The process of sending out crypto bonuses is simpler than it might seem at first. With current technology advancements, there are services that make mass payments safe and easy. NOWPayments is one of the most reliable and trustworthy crypto payment services out there, and they streamline the entire process to the point where it only takes a few steps to send payments to a large number of people.
First, you’ll need to register an account and verify your email address. Then provide the wallet address that you will be using to send and receive payments.
After the account is created, you can access the dashboard, go to the settings and generate an API key. Next, fill in a survey and send a written request to activate mass payouts from your registered email to [email protected].
The team will process your request and activate the feature so you can start making mass payments. In order to do that, you will need to deposit the cryptocurrency of your choice into the account. Next, specify the crypto addresses and the amounts of crypto they need to receive.
That’s it! NOWPayments will do the rest, and your employees will receive their funds the same day without any extra hassle. You can also use any cryptocurrency from a list of over 100, enjoy automatic conversion of available currencies, low fees, and speedy transactions. Additionally, NOWPayments provides private and secure payments with 24/7 support from the team.
Thanks to services like NOWPayments, you can skip the tedious process of payroll and banks while also saving your time and money, and crypto winter could be the best time for you to start making bonus payments to employees in cryptocurrency. The first step would be to make sure the employees are informed on how to create their crypto wallets and what they can possibly do with the crypto bonus. It’s also good to take some time to educate employees on the benefits of cryptocurrency and why you chose it for bonus payments.