Survey Polls American Awareness of Cryptocurrencies and ICOs

ICO

In October 2017, LendEDU, a marketplace for financing loans, credit cards and other financial products, polled 1,000 Americans asking a series of questions related to Ethereum, Ripple and initial coin offerings (ICOs). They did this to gain insight into the average American’s perception of cryptocurrency. The poll was conducted by online polling company OnePoll, which acted as a third party and was able to provide an age and gender breakdown of respondents. The poll was answered by 1,000 Americans ages 18 and up over two days, from October 27 to 30.

Ethereum:

  • 31.60 percent of Americans have heard of Ethereum and 18.20 percent of Americans are planning to invest in ether (ETH)

At the time of writing, with a market capitalization of $28.49 billion, Ethereum is the second-largest cryptocurrency, about one-fourth the market capitalization of Bitcoin. Since the start of 2017, the price of ether has grown from $7.98 to $298.

The survey showed that American awareness of Ethereum trends toward a younger (millennial) demographic with 58.49 percent of Americans between the ages of 18 and 24 having heard of the cryptocurrency and 32.08 percent of the same demographic planning to invest in Ethereum as an asset for the future.

47 percent less Americans have heard of Ethereum compared to Bitcoin based on a LendEDU survey conducted a month prior on Bitcoin. When asked whether or not they would invest in either cryptocurrency as an asset for the future, Americans 25–34 showed the most interest. The number of these respondents saying they would invest in Bitcoin was only 6.68 percent greater than those saying they would invest in Ethereum.  

On the opposite end of the spectrum, only about 1.34 percent of Americans 55 and older plan to invest in Ethereum as an asset for the future. Across all age groups, 37.80 percent of respondents were unsure about investing in Ethereum, which could indicate a lack of knowledge about cryptocurrency as much as general uncertainty about future investing.

Ripple:

  • 22.20 percent of Americans have heard of Ripple and 14.80 percent of Americans are planning to invest in Ripple (XRP)

At the time of writing, with a market capitalization of approximately $8 billion, Ripple is the third-largest cryptocurrency (depending on whether or not you count Bitcoin Cash). That’s one-fifteenth the size of Bitcoin’s market capitalization. Since the start of 2017, the price of Ripple has grown from $0.006 to $0.201.

As can be seen by these numbers, LendEDU’s survey respondents showed awareness and investment interest in Ripple at similar levels to those for Ethereum.

In a recent interview, the CEO of Ripple, Brad Garlinghouse, made the point to elaborate on the differentiating value propositions for each of the three largest cryptocurrencies:

“In 2017, people have realized there isn’t going to be one crypto to rule them all. You’re seeing vertical solutions where XRP is focused on payment problems, Ethereum is focused on smart contracts, and increasingly Bitcoin is a store of value. Those aren’t competitive. In fact, I want Bitcoin and Ethereum to be successful.”

ICOs

It’s no secret that initial coin offerings (ICOs) have risen in popularity this year as much for their innovative investment opportunity as their regulatory controversy and scams. In September 2017, China declared ICOs to be illegal, while the United States Securities and Exchange Commission (SEC) exposed two different ICOs claiming to be backed by real estate and diamonds to be frauds.

Raw scores:

  • 24.90 percent of Americans have heard of ICOs and 15.10 percent of Americans are planning to invest in startups via ICOs

As seen in this chart, almost two-thirds of the American population polled are not sure whether or not ICOs are illegal, while 21 percent believe that investing in them is illegal. As a comparison, in the Bitcoin survey from September, only 10.69 percent of respondents incorrectly believed it was illegal to own bitcoin in the U.S.


Summary

Across all questions, LendEDU found a group of respondents who have yet to hear about these specific cryptocurrencies but are open to the idea, or at least unsure, about investing in them. All this to say, in the U.S., cryptocurrency cannot be considered mainstream: Ethereum is not quite as well-known as Bitcoin, most are unsure about whether or not ICOs break the law, and Ripple’s market capitalization is not a strong indicator of its success as a currency. 

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Setting Bitcoin’s Price Mechanism: CME Group to Launch BTC Futures

Setting Bitcoin’s Price Mechanism: CME Group to Launch BTC Futures

On the anniversary of the publication of Satoshi Nakamoto’s Bitcoin white paper, the price of Bitcoin reached a new all-time high, following the news that CME Group, one of the world’s largest derivatives exchanges, will launch a Bitcoin futures product on November 14, 2017.

Futures or derivatives in general are understood by their relationship to risk. They are investment products that can be bought and sold in the future based on being pinned to a fixed price through a contractual agreement. Basing futures off another fixed price allows investors to avoid financial risk or assume it for profit during price fluctuations.

Like most futures, CME’s Bitcoin futures product will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR). According to CME, the BRR is a standardized reference rate, which — along with a bitcoin spot price index, the CME CF Bitcoin Real Time Index (BRTI) — “accelerat[es] the professionalization of bitcoin trading.”

Like most other financial institutions exploring cryptocurrency, CME is launching a Bitcoin futures product to both satisfy client interests and investigate the rewards of testing blockchain technology’s “transparency, price discovery and risk transfer capabilities,” as noted by Group Chairman and Chief Executive Terry Duffy.

The BRR and BRTI are two tools that have become consistent and reliable price references for bitcoin globally. The BRR has been calculated and published by CME and Crypto Facilities Ltd. since November 2016. Designed according to the IOSCO Principles of Financial Benchmarks, the BRR computes price by compiling and calculating data from a number of Bitcoin exchanges including Bitstamp, GDAX, itBit and Kraken.

The implications of this Bitcoin futures product launch are far-reaching. It signifies both mainstream network adoption and a reduction in price volatility. As an investment product, it can readily fit into the stock portfolio of a traditional investor.

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This Blockchain-Powered Platform Aims to Disrupt the Esport Gambling Industry

This Blockchain-Powered Platform Aims to Disrupt the Esport Gambling Industry

Esports wagering is a large — and growing — global industry at the intersection between gambling, technology and entertainment. In their 2017 Global Esports Markets Report, Newzoo found that China and North America will generate $362 million during 2017, or 52 percent of global esports industry’s revenue. If the esports industry continues on the same growth trajectory, the global industry is expected to generate $1.4 billion in 2020.

Unikrn’s blockchain-powered platform is tapping into this growth industry, offering services such as “skill and spectator betting applications, a tournament series, team ownership, a casino group and multimedia content for the esports fanbase.”

Along with launching an initial coin offering (ICO) in mid-September, the company has expanded its offerings to the European Union through a joint venture with RBP, a key player in the online horserace and sports betting market, and plans to launch a new skills-based product.

Expanding across the European Union comes after the platform was granted a much coveted gaming license from the Malta Gaming Authority (MGA). As one of the first European Territories to regulate online gambling, Malta has reportedly become a staunch regulatory supporter over the past several years. Today, over 100 companies currently hold a license issued by the MGA including software developers, online casinos and Remote iGaming operators.

Though obtaining a gaming license from the MGA took more than a year, for Unikrn, it has provided an opportunity to enhance their reputation as a legitimate esports wagering platform; something critical for their successful expansion and token sale. “They [MGA] are by every measure the gold standard and one of of the most respected authorities for responsible and ethical wagering,” said Unikrn founder and CEO Rahul Sood in a statement.

After creating the VoodooPC in 1991 then selling it to Hewlett-Packard, Sood spent 18 years as an entrepreneur. Next, he joined as general manager of Microsoft Ventures, Microsoft’s international startup accelerator and outreach program. Sood left Microsoft in 2014 to enter the world of live immersive esports betting by co-founding Unikrn.

Why Blockchain?

During its Series A round, Unikrn received funding from several notable investors including Mark Cuban, owner of the Dallas Mavericks, actor Ashton Kutcher’s venture firm, Sound Ventures, media executive Elisabeth Murdoch’s venture fund Freelands Ventures, media executive Shari Redstone’s Advancit Capital and the largest betting company in Australia, Tabcorp. The commonality between most of these venture funds is that they typically pick portfolio companies working in a mix of media, technology and entertainment.

Anthony Di Iorio, serial entrepreneur and CEO of Decentral, joined UnikoinGold as an advisory team member because he finds the project both intriguing and well-supported.

I’m a big believer in the power of decentralized technologies, like blockchains, to empower entrepreneurs and individuals,” he told Bitcoin Magazine. “I’m motivated to support the entrepreneurs, the projects, and the communities that are pushing that technology forward by applying it in interesting and exciting ways to existing markets. Unikrn is a bit special.”

Unikrn’s Editor-in-Chief of content, Ryan Jurado, describes the platform’s journey toward the blockchain as a tool for product and community growth. In 2015, Unikrn released Unikoin, a free, internal, non-cryptographic token issued in 2014 that gives users the ability to bet on esports and win prizes in regulated markets where Unikrn is unlicensed to operate. However, Unikoin had no secondary market and customers persistently asked for more value or uses for the token.

Jurado explained that idea for Unikrn to use blockchain technology first came from Mark Cuban in early 2016. After investigating the technology, the team found using a blockchain-based currency would improve compliance and accountability, two activities paramount in bookkeeping.

“The distributed ledger makes Know Your Customer (KYC) and risk management easier and less costly,” Jurado said to Bitcoin Magazine. “It saves time and money used for converting currencies, and helps minimize engagement with banks.”

Along with a distributed ledger model, Jurado also pointed out that the blockchain “expands real-time betting, live betting and skill-based products that would be difficult, or impossible, using fiat currency.”

The blockchain’s ability to increase transaction options while decreasing the need for transactional trust was another value Unikrn sought, Jurado explained, resulting in “an Ethereum-based token with an open ledger that can be used to better rate risk and flag potential abuse.”

A gaming platform such as Unikrn which runs vast numbers of transactions per day manages a lot of risk benefits from “an Ethereum-based token with an open ledger that can be used to better rate risk and flag potential abuse.” Furthermore, as Jurado pointed out, “For users, it’s a home-run: Using blockchain is less expensive than using fiat, and less overhead means less expensive products.”

Tale of Two Koins

To run the token sale and crypto platform, Unikrn opened a subsidiary, Unikrn Bermuda Ltd. The token that Jurado hopes will become “the decentralized token of esports and gaming” is called UnikoinGold (UKG) and was made available in September.

Di Iorio described UnikoinGold as “the (decentralized) beating heart of the secure and seamless wagering ecosystem Unikrn has pioneered.”

As for the original non-cryptographic token, Unikoin, Sood has stated that Unikrn is undergoing a “forking” of their token system in which there will be two currencies: UnikoinGold and UnikoinSilver.

Anybody in the world can buy and use the Ethereum-based UnikoinGold utility token in non-betting applications, including jackpots and experiences, software, hardware, esports, teams and tournaments; however, only users in Unikrn-licensed regions will be able to use it to bet.

Though UnikoinSilver can only be earned, it can be used in most unregulated markets around the world. “The token will allow every non-minor esports and gaming fan to engage in all Unikrn betting products, regardless of where they live. It is a free, non-blockchain token, but will allow fans to unlock real prizes and non-betting operations including editorial, production studios, tournament organization and live broadcasting.” UnikoinSilver also appears to be an alternative “to unregulated skin betting for regions where real-money betting can’t be offered.”

ESPN Meets Esports Meets Vegas

Having already raised $30 million in ether, the UnikoinGold token sale is capped at $100 million. One advantage it has as a token sale is the ease of onboarding users who are already familiar with token transactions. Unikrn’s other advantages come from the fact that they already have an existing platform that is profitable and an online community that is engaged. “This isn’t an investment,” said Sood in a Medium post, “It’s a purchase for a product that we developed that has utility on our platform and our users love and demand.”

A clear caveat to UnikoinGold’s success is that its gaming/ICO combination is sure to keep them visible on every regulator’s radar, which is why earning a Maltese gaming license was such a significant step.

Even at such a unique intersection between media, gambling and gaming, Unikrn is not the only player. Other esports betting platforms using blockchain technology include FirstBlood.io, Eloplay, Gimli.io and Skincoin. And it has yet to crack the lists of top esport betting platforms on sites like OpenOdds and EsportsOnly.

Sood does not seem surprised by his company’s success, thus far. “UnikoinGold was designed and intended for use by our own esports community. It’s like ESPN meets Esports meets Las Vegas.”

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India Trials a Power Grid on the Blockchain to Incentivize Sustainable Energy

powerledger.jpg

Access to reliable energy is the foundation of economic development and human society. Yet reliable energy can come at a steep environmental cost.

Today’s energy systems are being rapidly reexamined and transformed by both private businesses and public organizations. Innovation coupled with changing policy and consumer demands has prompted The World Economic Forum’s System Initiative On Shaping the Future of Energy. The WEF noted that four out of five of the Initiative’s goals can be addressed in some way through the application of blockchain technology:

  1. Enable innovation to accelerate opportunities towards smarter and more efficient energy use;

  2. Enable the cost-effective reduction of energy’s environmental footprint;

  3. Enable universal access to affordable reliable energy; and

  4. Improve system resilience and security.

One area of application that has been of interest for its utility, efficiency and sustainability is the blockchain application to microgrids.

MaaS in India

Multinational IT provider, Tech Mahindra, and the peer-to-peer based energy trading platform, Power Ledger, have created a new service for clientele specifically interested in microgrids. Microgrids are distributed energy systems that act as a single controllable entity with respect to a larger energy grid network.

A microgrid’s key feature is that it can connect and disconnect from a larger grid network, enabling it to operate both as a part of a larger grid or in “islandmode” as its own grid. The new service offering includes a package of technical services and a platform for customers to set up and operate their own microgrid called “Microgrid-as-a-Service” (MaaS).

The MaaS platform integrates multiple energy assets such as solar, battery storage, electric vehicle chargers and analytics to measure energy efficiency. MaaS is intended to offer resilient and reliable electricity that is also local and less carbon reliant.

While the MaaS product provides technical control over a microgrid, Power Ledger’s blockchain-based platform acts as an added transactional layer that reimburses users for excess clean energy produced by allowing peers to store and trade it at a local level. The blockchain also manages all energy debits and credits of accounts, automates trading and measures each participant’s ongoing financial statements. The blockchain does this by tracking the data flow from smart electricity meters — an Internet of Things application for the energy sector.

The Power Ledger blockchain-based software platform will begin in late 2017 as a virtual trial run on those Tech Mahindra campuses in India that are already hooked up to microgrids.  

Location proves to be a key factor for the project’s success based on two reasons. Data from urban microgrids are typically more complex due to population density; they can, therefore, better demonstrate the strengths of using a blockchain-based platform for microgrids. Also, urban microgrids are much more common in India as opposed to OCED countries where they are mostly employed in rural settings.

“Trialing in India is a major opportunity to change the way communities source the energy required to take part in a modern global economy,” said Power Ledger’s Managing Director, David Martin.

An Economic Environment Ready for Disruption

The fact that India’s economy has been declining since the beginning of 2017 enhances the project’s case for using a blockchain to improve the country’s bottom line. In the first six months of 2017, the country’s gross domestic product fell from 7 percent to 5.7 percent. This may be due in part to reform efforts by Prime Minister Narendra Modi in the last year.

In June, Modi announced a complete overhaul of India’s tax system. Back in November 2016, he banned the 500 rupee ($7.50) and 1,000 rupee ($15) paper notes, calling them “worthless pieces of paper,” as a way to limit fraud and corruption. These banned notes were said to make up about 86 percent of all cash in circulation, according to CNN Money.

Opportunities for digitization using blockchain technology, and especially for cryptocurrencies like bitcoin, are a much needed alternative to several of their systems that do not already have effective nodes of trust built in.

Power Ledger has already proved that its platform can work for both homeowners and businesses. In Busselton, Australia, their peer-to-peer trial showed households can save about $470 ($600 AUD) per year on electricity bills. The forward vision for using blockchain-based platforms to trade energy within microgrids is to enable building owners, campuses, and even “smart cities” and other communities to produce and manage their own affordable electricity and then trade any excess generation.


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South Korea’s ICO Ban: A Reaction to “Serious Concerns” Over Cryptocurrency Investment Practices

South Korea's ICO Ban

The South Korean Financial Services Commission (FSC) has announced it will ban all forms of initial coin offerings (ICOs). After a meeting to discuss virtual currency control, the vice-chairman of financial affairs, Kim Yong-bum, made this comment as part of an official statement:

“We expressed a serious concern that the recent inflow of funds into the nonproductive speculative direction is showing up. As a result, we believe that additional measures are inevitable in order to switch to productive investment.”

The statement concludes by saying:

“All forms of ICO prohibition including securities issuance [and] monetary lending and coin margins are prohibited, blocking all business related business alliances.”

Korean blockchain expert and entrepreneur Ash Han told Bitcoin Magazine that “the FSC is concerned about ignorant investors becoming victimized by scammers using crypto.” Specifically, Han is referring to multi-level marketing or network marketing, an infamous way to raise money using existing distributors to recruit new distributors. This type of business strategy is often fraught with pyramid schemes in which raising money from new recruits buying in is the primary focus of the business instead of actual product development and sales.

Because the FSC has judged that virtual currencies such as bitcoin and ether are electronic representations of value and not financial products such as securities, the government has chosen to indirectly regulate virtual currencies through banks.

In addition to the FSC, several government organizations including the Korean Fair Trade Commission (KFTC), the National Tax Service (Korean IRS) and the police have formed a joint inspection system that will examine the current conditions of virtual currency exchanges through on-site inspections.

The FSC will examine the customer information leakages caused by hacking, strengthen penalties for similar behavior to prevent money laundering, and open a joint inspections system with several other government entities to examine the current conditions of digital currency traders and exchanges. The joint inspection system will also examine the regulatory and taxation trends of other countries and international organizations to form consensus on the character of virtual currency trade and taxation.

Until December, virtual currencies such as bitcoin and ether will be traded on an exchange only if a bank has confirmed the authorization of an account.  

“We will begin the transaction by checking the identity of the bank account and monitoring the flow of funds,” stated an official from the Financial Services Commission. According to Han, employing banks to keep track of all new accounts opened on exchanges will permit the FSC’s further investigation of violations regarding Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. The only change for virtual currency exchange customers is that now these customers need to be able to prove that the bank accounts they have connected to an exchange belong to them.

While these new regulations could be efforts to correct South Korea’s frenzied ICO market, Han points out that if the South Korean authorities tightened control over virtual currencies much like China, they could “put a huge tax on crypto-related activities.”

Jay Kim, a.k.a The Crypto Lark, a Korean digital currency YouTube host, says the country’s ICO ban will not affect individual investors who participate in foreign ICOs. “In Korea, people actively investing in ICOs will not be affected. The government is concerned with scams. I think it’s a temporary measure until there are some regulations in place for ICOs.”

Scams and Bad Actors

This news comes as no surprise given an overall global move to regulate ICOs in some way. China has banned the issuance of virtual currencies as illegal public funding. In July, the U.S. Securities and Exchange Commission issued a warning that token sales would be regulated as securities and thus would have to comply with reporting and consumer protection requirements. On August 1, the Monetary Authority of Singapore (MAS) clarified that the issue of digital tokens would be regulated by MAS if the digital tokens constitute products regulated under the Securities and Futures Act.

Also, the South Korean digital currency exchanges have been consistently targeted by hackers over the last several months. According to a report by security firm FireEye, North Korea has been targeting digital currency exchanges since April 2017.

Since May 2017, North Korean actors have targeted at least three South Korean digital exchanges with the intent of stealing funds. This type of attack has been predominantly targeted at the “personal email accounts of South Korean employees of digital exchanges using a tax-themed lure to deploy malware.”

On July 5 2017 Bithumb was victim to a major hack. Bithumb remains South Korea’s largest digital currency exchange, the world’s second-largest Ethereum exchange by daily volume. At the time of the hack, 13.5 percent of the the total ether market was going through Bithumb’s exchange. Attacks such as this one would certainly have attracted scrutiny from Korea’s Internet and Security Agency.

Growth and Opportunity

This latest blow to South Korea’s cryptocurrency community comes at a time of recent growth and opportunity, despite the persistent scams and hacks of bad actors. Since China’s ICO ban in early September, South Korea has quickly been overtaking China in daily trading volume of digital currencies.

The country’s connection to the internet and technology in general cannot be underestimated. According to a 2015 study by content delivery network Akamai, South Korea had the fastest internet speed in the world based on the unique IP count, and its largest export company, Samsung Electronics, made a profit of $16.5 billion USD in 2016.

South Korea’s third-largest exchange, Coinone, recently opened “the world’s first blockchain 4D zone,” a brick-and-mortar exchange complete with a bitcoin ATM, a large display with real-time market information and a face-to-face consultation service.

The South Korean fintech firm Dunamu has announced the launch of a new crypto-trading platform through a partnership with the U.S.-based exchange Bittrex. The platform, called Upbit, will be released in beta in October. It will support over 110 different digital currencies including bitcoin, litecoin, ripple and ether.

In terms of popularity, the digital currency community in Seoul alone is enormous with 16 registered cryptocurrency Meetups, the largest of which is the Seoul Ethereum Meetup with approximately 3,550 members. In the past year the government has even taken part in the digital currency industry by auctioning off confiscated bitcoin.

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Get Your Wages in Cryptocurrencies: Bitwage Expands to the U.K.

Get Your Wages in Cryptocurrencies: Bitwage Expands to the U.K.

It’s getting easier all the time to be paid in cryptocurrency. As of Monday, July 3, Bitwage, the Bitcoin payroll and international wage payment service, announced that it is launching services in the U.K. While there might be irony given that earlier this year Bitwage also announced it would offer European Union (EU) IBAN numbers to workers anywhere in the world receiving wages from EU companies, the latest news suggests that the United Kingdom is ready for cryptocurrency. But Bitwage has been saying that for two years.

“For domestic workers, we are providing the easiest way for users to obtain digital currencies,” Jonathan Chester, founder and president of Bitwage, told Bitcoin Magazine in a recent interview. “It is just ‘set it and forget it,’ as your savings of bitcoin, ether or litecoin increase over time. This is great timing to allow all the new U.K. users that have come into the ecosystem due to the recent price rise.”

The Brexit Impact

“For international workers, this comes at a good time during the uncertainty of Brexit,” said Chester. “Once the U.K. leaves the EU, it will be much harder to receive payments from U.K. companies throughout Europe. Our solution will help reduce the cost and delays for workers receiving wages from the U.K., despite the impending consequences of the U.K. leaving the EU.”

If Brexit leads to a significant change in the exchange rate, businesses will need to account for the most efficient payment process possible to reduce the likelihood of errors, delays or any other costs within their control.

Adoption in the Workplace

While entire companies can easily switch their entire workforce payroll onto Bitwage, this scenario is not entirely necessary. Individual employees can create accounts for themselves. “If someone is interested in getting their wages or a portion [of them] in cryptocurrency, all they have to do is sign up to Bitwage and provide the bank account provided to their employer,” explained Chester. “[Employers] don’t even need to know the difference.”

However, a great way to spread cryptocurrency adoption in the workplace would be to discuss the advantages of Bitcoin with fellow employees and management. As Chester put it, “Bitcoin is a much better store of value than gold [because it’s] easier to use and store, and it’s much more scarce. For employees, taking a portion of wages in cryptocurrency would be an investment.” Because users have the option of allocating the portion of their wages that are paid out in crypto versus fiat, it is an easy way to automatically start holding small amounts of cryptocurrencies.

1.  Cryptocurrency Lowers International Payment Costs

“If you are paying a lot of workers, it is about saving money on wire fees and not being limited on the amount you can send,” said Chester. “Systems that save you money on wire fees, but do not leverage blockchain [technology], have to use a method called ‘float.’ This essentially means they are holding money in the other country to pay out when they receive the funds and then send a bulk wire to replenish the accounts in the payout country later. These systems have to limit the amount you can send so that they do not run out of funds to pay out. This is not the case with blockchain [technology].”

Chester said that, before announcing its U.K. launch, several U.K. companies had approached Bitwage, hoping to use their service to pay workers in the Philippines. They wanted a way to save money on wire fees, save their workers money on exchange rates and remove limits on the amount of money that can be sent.

2. Optionality Is a Powerful Marketing and Recruiting Tool

For many people, particularly millennials, having options can be a legitimate benefit. Offering employees more options for how they want their wages paid out is empowering. Furthermore, it signifies trust between employee and employer.

Bitwage can also receive and pay out in a wide range of other currencies such as gold, silver, USD, Euros, GBP, BRL, PHP, INR, MXN, ARS, VND, NGN and UAH. Choice of currency could be a formidable recruiting tool to attract a much wider pool of talent. For instance, international employees, the unbanked, gold bugs, silverites and of course the crypto community might appreciate the option of getting paid in the currency of their choice.

Chester pointed out that once more than 50 percent of employees at a business are getting paid in cryptocurrency, an employer might even decide to provide an incentive package “like a bitcoin 401k.”  

It is important to note, however, that once businesses receive bitcoins from a Bitcoin transaction, it becomes that entity’s responsibility to report capital gains. If a business receives all of their transactions in another designated currency, no additional reporting is required. Before making these choices on the type of payment, payment processor and preferred currency for Bitcoin transactions, and before making any changes to their settlement, it’s a good idea for business owners to discuss their intentions and their options with their accountants.

Furthermore, employees should pay careful attention the Bitwage’s fee structures, since there are some costs associated with the service.

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