Can Employees Get Paid In Bitcoin?

get paid in bitcoin

Investors continue to flock towards cryptocurrencies like Bitcoin. Some businesses accept payments in Bitcoin, and rumors continue to swirl about major companies accepting the cryptocurrency at checkout. 

The growing popularity of the crypto asset has left some employees wondering if they can get paid in Bitcoin. Legally, employers can pay their employees in Bitcoin, but should you take an employer up on that offer? 

Knowing more about the popular cryptocurrency will help you make a more educated decision. So, let’s take a closer look at what it means to get paid in Bitcoin! 

What is Bitcoin used for?

Bitcoin is an asset that some businesses accept as a form of payment. While the asset carries plenty of speculation, bullish investors will point towards a future where Bitcoin becomes the dominant currency. The cryptocurrency’s limited supply and decentralized nature support the bullish thesis even more. 

Pros and cons of getting paid in Bitcoin

While bullish investors tout Bitcoin as the currency of the future, the price of Bitcoin moves like a speculative investment. The cost of Bitcoin can rise and fall more than 5% on any given day for seemingly no reason at all. 

For instance, when it comes to the dollar, the USD: EUR rate has increased by 1% over the past year in favor of the dollar. Bitcoin is no different in terms of the way it rises and falls.


Rapid appreciation

Over the past year, Bitcoin has increased by over 300% and this appreciation is in stark contrast to the U.S. dollar. As we mentioned, the U.S. dollar has only gone up by 1% compared to the Euro over the past year.


Many investors are concerned about how the government’s money printing strategy in 2020 will affect inflation in the years ahead. Since Bitcoin has no central authority, those issues aren’t prevalent. 

Inflation hedge

Not only does Bitcoin’s decentralized nature protect it from something like the current governmental money-printing strategy, but some people view it as an inflation hedge. While investors often debate the validity of Bitcoin as an inflation hedge, the cryptocurrency’s limited supply works in its favor.

Less hassle for international transactions

A significant advantage of receiving payments in Bitcoin is avoiding the hassle of international transactions. The cryptocurrency makes it possible for you to escape hefty fees and long wait times in between transfers. 

No bank account needed

A mobile phone or computer is all you need in order to receive Bitcoin. Not everyone has access to traditional banking systems, making Bitcoin a viable global alternative to money.



Although Bitcoin accelerated over 300% in a year, the cryptocurrency has declined 20% in some months. Even though it’s touted as the currency of the future, Bitcoin moves similarly to stocks. While this is an advantage when the markets are smooth sailing, any amount of turbulence can quickly cut down the asset’s worth.

Can be manipulated

Stocks, real estate, and traditional currencies can also be manipulated, but they are not as easy to manipulate as Bitcoin. For instance, when a single Elon Musk tweet is all it takes to generate a dramatic change in the price of Bitcoin, there’s a reason for concern.

Lack of portfolio diversification

Receiving payments in Bitcoin isn’t the best way to diversify your portfolio. Rather than asking for payments in Bitcoin, take the cash you earn and put some of it into Bitcoin. Then, decide how much you’ll invest in stocks and how much you’ll keep in the bank. Many Enron retirees lost their entire portfolios because they went all-in on Enron under the guise that it could never fail. One employee who had $2 million saved up saw their retirement fund crash and burn, plummeting all the way down to $4,000 after that employee held onto Enron stock. Diversifying your portfolio makes it possible for you to prepare for the worst. 

Governments are cracking down

Some governments have issued warnings while others have outright banned Bitcoin. At the same time, a few government entities are experimenting with Bitcoin as a mainstream currency. If you are thinking about investing in Bitcoin, you have to pay attention to how Bitcoin is viewed by governments around the world. If they crack down on Bitcoin, its price may tumble, which will not be in your favor. 

Poor timing

Some Bitcoin investors bought the coin at its peak in 2017 and saw their positions get ripped to shreds by 2018. Any investor who continued holding in 2017 came out on top, but can you hold onto an asset if it quickly drops 50% with no end in sight? This risk is prevalent with any investment but becomes more problematic with speculative investments. You can counter this risk with dollar-cost averaging, which is where you buy some Bitcoin each month rather than paying a lump sum all at once. 

5 factors to consider before investing in Bitcoin

Investing in Bitcoin isn’t for the faint of heart. Before you put any money towards Bitcoin, consider these factors.

1. Weight in your portfolio

Any investment becomes dangerous if it takes up too much of your portfolio. When deciding how much to invest in Bitcoin, assess your risk tolerance. Conservative investors should have little to no money invested in Bitcoin. Growth investors who are more willing to take on risks can consider allocating more funds towards the blockchain-fueled currency

Diversify your investment portfolio by setting up a MoneyLion investment portfolio. For as little as $5, you can automate your investing and effortlessly grow your financial feature.

2. Time horizon

A longer time horizon gives your assets enough time to recover losses and for growth narratives to play out. If you can hold onto Bitcoin for ten years, it will provide the cryptocurrency with plenty of extra time to live up to its potential.

However, holding Bitcoin is not smart if you need to take out the funds within a few months. A shorter deadline won’t give you as much time for Bitcoin to recover if you suffer losses. If you need funds within a shorter time frame, consider low-risk investments instead, such as CDs. 

3. Cost of living

Knowing your monthly expenses will help you make smarter investing decisions. Some investors strive to retire early by generating cash flow from their investments. These investors can close the gap early with a combination of cash flow and a part-time job.

Set a cash flow target that surpasses your monthly expenses. While Bitcoin doesn’t generate cash flow, it can rapidly appreciate, eventually giving you additional money to shift towards cash flow-producing assets in the future. If your cost of living matches your monthly income and your emergency funds are low, investing in a high-risk investment like Bitcoin isn’t the best idea. 

4. Risk tolerance

Can you sleep at night if your portfolio drops 10% in a single week? Will you panic during a correction and quickly hit the sell button? If downward pressure on your investments constantly steals your attention or hurts your health, Bitcoin is not the best investment. However, if you can handle the downward pressure and focus on the long-term potential of your assets, Bitcoin makes more sense for you.

5. Security

Bitcoin’s security isn’t the same as the security of stocks. Hackers can easily get into online wallets and steal people’s Bitcoins. You can make your Bitcoins safer by storing them on a hard drive, but you’ll lose your Bitcoins if you lose your hard drive. You are your bank, meaning you’ll have full control over your cryptocurrencies.

At the same time, you are also your own customer support system, so you have to ensure that you’ll never forget your private keys. If you do, you’d lose full access to your coins, which is dangerous. Only a small percentage of Bitcoin holders end up losing access to their funds, but it’s a risk that other assets, such as stocks and real estate, do not pose. 

Should you ask to get paid in Bitcoin? 

Each investor is different. Bitcoin makes sense for some investors more than others, but one resource that will help any investor is immediate access to funds.

You can use Instacash to get immediate access to $250 at 0% APR. You can use these funds to invest before receiving your next paycheck or cover some expenses around the house. Get started with Instacash today.

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