When most talk about the crypto market, topics such as jobs, salaries, and taxes are largely overlooked. Interestingly enough, even with the decline in the value of cryptocurrency, there has been a growth in these areas.
Blockchain-Related Job Demand Increases
In a report by LinkedIn analysts, about 645 job openings used words such as “blockchain,” “bitcoin,” and “cryptocurrency” in 2016. A year last, the number of job openings using these terms increased to 4,500. Now, this year, there are 13,816 blockchain openings and 2,749 related to cryptocurrency.
Glassdoor’s own figures seem to support these findings. A report released by the platform indicated that most of the cryptocurrency vacancies occurred in American cities, such as New York and San Francisco. In the area, it seems that software developers are the most in-demand occupation, with traders and investors falling right behind.
Those who look at the field for the timeframe of the last three months, the state of the job market in the crypto and blockchain field looks a bit different. Those interested in such roles declined by 3 percent, but the amount of jobs openings in such areas increased by 481.61 percent. Two of of the largest companies that is seeking out individuals in the area re IBM and ConsenSys. Further, the jobs are not only in the United States, but in other countries as well.
Well-Paying Jobs And Packages
The benefit of seeking employment in a space with very few qualified individuals is that the salaries and packages are higher. The average base salary is around $84,884 per year, which is higher than the average salary in the United States, which is around $52,461. As for those who are able to develop blockchain technology and who have three to five years of experience, they are able to start around half-a million dollars.
David Schwartz of Ripple stated that hiring packages have become “insane,” due to ICOs putting a great deal of money in the industry. A few of the platform’s developers have received bonus offers of $1 million.
The increase in salaries does not always mean that the quality of the products would improve. To the contrary, some have argued that the quality has declined. Alex Ferrara of Bessemer Venture Partners, stated that “over eagerness [is] impacting the pace of development. A lot of these projects are way behind on their launch schedules.”
Which Currency Applies To Wages?
Chronobank, an HR startup, released a survey in which it questioned 445 individuals in the crypto space from around the world on which currency they preferred to receive their wages in. About 66 percent indicated that they preferred to be paid in bitcoin and 83 were fine with receiving digital money.
Humans.net, a peer-to-peer platform, also conducted a large survey that showed that there has been a significant increase in interested toward receiving payment in cryptocurrency by everyday citizens. There are a few firms that already offer salaries in cryptocurrency. For instance, GMO Internet, a IT company based in Tokyo, plans to pay salaries in crypto. There are also companies outside the crypto space that are paying in crypto. For instance, Gibraltar United football may play its players in crypto coin Quantocoin. The club’s owner Pablo Dan is of the belief that payments in crypto leads to more transparency and it simplifies the financial transaction process.
According to Bloomberg Law analysts,
“Several U.S.-based companies are paying their international workers in Bitcoin, as it can save both the company and the employee money.”
Of course, there may also be tax liabilities involved. However, such liabilities are difficult to determine due to the absence of defined legislation and tax rules. For instance, the European Union does not have regulations on crypto activities and each country in the union has its own tax system for such transactions. In France, digital currency is subject to the country’s capital-gains tax. As for Germany, it does not tax crypto when it is used as a means of payment. In the United Kingdom, Bitcoin has no legal status, but is treated as a foreign currency.
In Asia, Singapore profits are not taxed when investors use crypto in their portfolio. China does not recognize bitcoin as a currency, but a service and thus it taxes it as a VAT. Australia taxes crypto using income tax, while Canada applies a capital gains tax. The United States requires that those who hold cryptocurrency pay by property tax.
Integration of blockchain and cryptocurrency in everyday life is slow, but as countries take a friendlier position toward these areas, then adoption may increase. Further, there are several states that have already adopted systems that allow payment using cryptocurrency. Even though China has banned crypto trading, things may change.
Further, the labor market has ben affected by cryptocurrency. More companies are looking for employees who understand the technology and who are passionate about it as well. Going forward, it will be interesting to see how things develop as crypto does too.