With the news that the Canadian Men's Basketball League (CEBL) is offering its professional basketball players the choice to receive part of their salary in cryptocurrency, it is an interesting position to be in. When we are running a team, or we are considering alternative ways to stimulate our teammates, we might be aware of the advantages of using transactions like Bitcoin over traditional currencies. The digital currency landscape is evolving. The unique nature of cryptocurrencies is designed to offer users many advantages over traditional payment methods, so if you are considering paying with Bitcoin, either for your transactions or paying your employees or teammates, it can benefit both sides of the equation. Let's show you how it can help.
It Simplifies Payments
Many organizations need payless borders. From the perspective of a sports team hiring players from other countries, paying in cryptocurrency is a significant advantage. The payment infrastructure is unable to keep up, and as far as global payments are concerned, digital currency is a lot faster and transparent on the blockchain. This means it eliminates any uncertainty between sending a payment and clearing it with the recipient's bank. Naturally, there are concerns, but while we hear about a Bitcoin price crash and the volatile nature of cryptocurrency, the reality is that every currency in the world is not without its risks. If you are looking to benefit from a global currency, you cannot do better than crypto.
It Empowers Your Teammates and Workforce
Even if they are all in the same country, there are advantages to paying in cryptocurrency. Being paid in crypto is the quickest way to invest in other crypto assets. It is predicted that by 2030, the digital currency will replace 25% of the current national currency. This provides a very simple approach as far as accessing this technology is concerned.
Every currency comes with twists, but there are certain payments that can offset any notions of negativity. For example, you may not have to worry about capital gains taxes, which is especially true with Stablecoin payments.
An Increased Sense of Security
One of the biggest concerns in cryptocurrency investments is that your payments are thrown into the ether. But every transaction in cryptocurrency is recorded on a public ledger known as a blockchain. This means that you don't have to panic about if a payment was received. Additionally, there are security precautions, encrypted wallets, and software packages that make it impossible to permeate. This is why so many people do not know how to access their cryptocurrency wallet- they purchased it a long time ago and do not have the means to access the password!
The User Autonomy
This is one of the biggest perks for any user. The autonomous nature of cryptocurrency allows users more autonomy over their own finances in comparison to traditional currencies. The recipient can control how they spend their money without dealing with a bank, which is classed as an intermediary authority. This means that you are not as prone to fees and interest.
The Discretionary Nature of Cryptocurrency
Purchasing a Bitcoin is a discrete action. You can choose to publish your transactions, but anybody that purchases items with Bitcoin does not need to publish their personal identity. This is a wonderful reminder that, in businesses and teams within the public domain, it allows a more private transaction, especially in sports industries where there are so many eyes on players’ private lives. The purchases are never associated with the buyer’s personal identity, which is similar to cash-only purchases. And the anonymous Bitcoin address which is generated by a user for the purchase will change with every transaction. While cryptocurrency transactions aren't 100% untraceable, they are less linked to personal identity in comparison to traditional payments.
The Elimination of Fees
The cryptocurrency exchange can charge what is called maker and taker fees, it is important to note that uses of cryptocurrencies like Bitcoin are not subject to the variety of banking fees associated with traditional currency. For example, there are no overdraft charges, no return deposit fees, and no account maintenance fees. International payments such as wire transfers and foreign purchases usually require exchange costs, but for any team looking to make foreign purchases, Bitcoin or cryptocurrency transactions are kept very low, making it a big advantage for any business looking to invest outside of its country, for traveling players in other countries. Any transferring of Bitcoin will happen very quickly, and this means that there is a lot less inconvenience, especially when it comes to awaiting authorization.
The Peer-To-Peer Practice
The Bitcoin payment system is peer-to-peer. Users can send or receive payments without requiring approval from any external source, which eliminates any fees, and while there are considerations with regards to the fact that it is not centralized, it does take the hassle out of the equation.
The Mobile Payments
Many online payment systems are done by internet access. With Bitcoin cryptocurrency, buyers don't have to travel to purchase the products. Additionally, personal information is not necessary to complete transactions, which is great for preserving the identities of purchasers. Additionally, as users can send or receive Bitcoins with a computer or smartphone, it is a widely accessible currency without needing traditional banking systems or credit cards.
What Else Do You Need to Consider If You Are Paying in Crypto?
There are a few things that you should think about.
It is crucial to make sure that you are meeting the legal requirements in your location. If you are working in a specific state or in another country, you've got to consult with a lawyer before paying contractors in cryptocurrency.
Cryptocurrencies are treated as property by the IRS. Therefore, anybody in the United States can incur capital gains taxes when cashing out for a profit. This doesn't mean you should use crypto to avoid taxes, because you still need to declare your income and the taxes on your earnings, it is important to understand which laws apply in your country or locality.
What Is the Right Solution?
Crypto payroll services only comprise a few options, and this means that there are many payroll solutions that are not suitable for specific organizations. You have to be aware that, with regards to numerous payroll solutions, you've got to find the right service to suit your needs. With regards to organizations like a sports team, there are a lot more legal hoops to jump through. If you are looking to pay your team in crypto, you may want to look at what the Canadian Men's Basketball League is doing and see how it pans out.
As you can see, as the world evolves, so does technology. And while there's a lot of technology in sport making considerable changes to the infrastructure, you will have to decide, if you are to go forward with cryptocurrency, how to get the balance right. You may only wish to partly pay the players in this currency. In one respect, it is a way to utilize new technology, but it is also another approach that you are investing in your players. Paying your teammates in cryptocurrency may seem like an alternative approach, but as you can see, there are significant benefits to using cryptocurrency. There are a wide variety of considerations that you've got to think about, but soon, as one team starts to pay their players in Bitcoin, the effect will soon snowball. Before you know it, it could be common practice across the board.