- In the past few years, the amount of money being invested into crypto (decentralized digital money) has hit an all-time high.
- Companies like Tesla and Twitter are already thinking about how to incorporate cryptocurrency into their operations.
- The increased popularity of cryptocurrencies have led some to wonder whether more items can be purchased with it, and if perhaps workers can choose to be paid in cryptocurrency in the future as well.
Humanity is being thrust into the technology-driven future; with the buzz around the impending metaverse, digital workforce, and cryptocurrency, it’s easy to wonder how soon our lives will begin to change.
The first cryptocurrency – Bitcoin – was invented in 2009, and since then 13,000 more have been created. In the past few years, the amount of money being invested into crypto (decentralized digital money) has hit an all-time high.
On Oct. 22, 2021 the total value of all cryptocurrencies amounted to more than $2.5 trillion, having fallen off an all-time high above $2.6 trillion days earlier.
In March 2021, Tesla CEO Elon Musk announced that the carmaker would accept Bitcoin as a mode of payment to purchase his electric vehicles.
In February, Twitter’s CFO said they’ve considered paying employees with Bitcoin. Similarly, the city of Miami is exploring Bitcoin payments for municipal employees.
These examples have led some to wonder whether more items can be purchased with cryptocurrency, and if perhaps workers can choose to be paid in cryptocurrency in the future as well.
Why are cryptocurrencies so popular?
Cryptocurrencies appeal to people for a variety of reasons:
- Supporters see cryptocurrencies as the currency of the future and are racing to buy them now, presumably before they become more valuable.
- Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation.
- Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system that can be more secure than traditional payment systems.
- Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.
Why would workers want to be paid in crypto?
1. It’s faster
With fiat currency (government-issued currency that is not backed by a commodity such as gold), cross-border payments have to go through conversions and intermediaries which can incur fees and slow the process down.
Since cryptocurrencies run on decentralized blockchains, they can reduce costs associated with these payments. Employers could send money to international employees instantly without any intermediaries if they paid in crypto.
2. It’s more secure
The distributed and transparent nature of blockchains also gives crypto payments some security benefits. Anyone can see blockchain transactions, but no one can change them.
This transparency and security help establish more trust for payments, which is particularly helpful for independent contractors and freelancers.
3. Crypto attracts future-minded employees
Companies in some competitive fields like the tech industry could enable crypto payments to attract top talent. By offering this type of compensation, businesses show they’re forward-thinking early tech adopters, attracting similarly minded employees.
How can coworking spaces leverage cryptocurrency?
Coworking spaces can be rented, sold, and managed using cryptocurrency created with blockchain technology.
A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority.
Full Node is a coworking space in Berlin built specifically as an anchor for blockchain companies. The workspace facilitates curation of blockchain infrastructure and is exploring prototype opportunities and engagement with smart devices.
Melbourne, Shanghai, and Lithuania are also home to the world’s first non-profit blockchain community hub and coworking space: The Blockchain Centre.
Beyond the operators creating blockchain spaces, there’s an operator creating cryptocurrencies specifically for shared workspace. Primalbase makes it possible to share, sell or rent shared workspace using a crypto/digital token called PBT.
Primalbase’s CEO Ralph Manheim has said that his company is bringing the future of work closer by building a solid infrastructure for the tech industry in an inspiring environment.
“Our digital tokens and workspaces ultimately facilitate efficiency of the working process. Through our investment in such infrastructure, our token holders benefit from shared workspace in a way that is uniquely effective. There’s a lot of creative interaction in our communal areas,” Manheim said.
Since crypto currencies are fairly new, there are some possible drawbacks
For Americans, there are state laws to consider.
Some states require employers to pay wages in U.S. currency, which would disqualify decentralized alternatives like Bitcoin. Many of these have exceptions but would still need some potentially complicated legal loopholes to pay workers in crypto.
Crypto compensation may also prove to be complicated when it comes time to file taxes. Regulations are still unclear about cryptocurrency’s taxable status, and they could change as crypto grows more popular.
As more prominent organizations embrace crypto payroll, the practice will gain legitimacy. Standards for paying in crypto will develop, and legal regulations could change to accommodate these payments.
With coworking history rooted in technology and start-ups, in future, operators will most likely utilize crypto – one of the largest technological innovations.
