Many millennials are attracted to cryptocurrency for its lack of central authority and the ability to conduct transactions anonymously. The number of companies offering cryptocurrency as a benefit is on the rise, but HR should consider how such a shift can affect recruiting efforts before implementing this benefit. HR should also be aware that certain cryptocurrencies have been fraught with challenges, including substantial volatility, scams, and general uncertainty, almost all of which make them an inappropriate choice for a retirement or savings vehicle. Employees who invest in cryptocurrencies may face steep risks with no promise of reward.
Cryptocurrencies are essentially digital tokens, most of which are used as some sort of medium of exchange. The most common cryptocurrency is Bitcoin. As a decentralized currency, there is no central bank that controls it or regulates it. Instead, most cryptocurrencies use blockchain technology to store data in a ledger which is publicly accessible on the internet and verified by multiple users. Users can then use these tokens to purchase goods or services.
The Cryptic History of Digital Currencies:
Bitcoin was first introduced in 2009 and has grown to be the most well-known cryptocurrency used worldwide. It was not the first cryptocurrency with the distinction of belonging to Litecoin. There are over one thousand cryptocurrencies in use today, and blockchain technology has been integrated into a number of industries, including banking, healthcare and transaction records. In the Bitcoin ecosystem, users can purchase items they need by sending bitcoins to the seller. The bitcoins are then sent to a separate wallet. Bitcoin transactions are recorded in a publicly accessible ledger called blockchain, which is distributed among all network users. Each transaction is made possible by mining, which involves verifying other users’ transactions and adding them to the public record.
Cashing In On Cryptocurrencies:
Companies are beginning to adopt cryptocurrencies. In February 2018, Kodak announced that it wanted to launch an initial coin offering (ICO) to launch KodakCoin, which is a digital platform that will allow photographers to receive payments for their work instantly and in cryptocurrency. Other companies such as Expedia, Shopify, and Overstock are also accepting Bitcoin as a form of payment. Cryptocurrency is also becoming a benefit for some employers. In March 2018, The Guardian reported that UK-based investment firm, Hargreaves Lansdown, announced that it added Bitcoin Cash and Ethereum Classic to its list of investment offerings when it added the two cryptocurrencies to the list of funds offered by its retail platform. The company decided to add these alternative digital currencies after finding customer interest in them was higher than initially anticipated.
Bitcoin and HR Benefits:
Profit-sharing, savings plans and retirement plans are common HR benefits. In fact, a 2017 survey by the Society for Human Resource Management found that 74% of companies surveyed offer some type of retirement plan and 76% offer some kind of profit-sharing plan. In either case, the employer makes a contribution to the employee’s account, which can help lower their tax liability. With cryptocurrency gaining popularity, it could be the next benefit HR provides to employees. One of the possible uses for cryptocurrencies is a corporate profit-sharing plan. In this plan, employees would invest a portion of their income in cryptocurrency, which would then be distributed to them upon vesting or exit. This type of plan offers several benefits, such as increased financial literacy and an incentive to save and invest. The employer can also benefit by offering a benefit that can attract younger workers who are more likely to be digital natives and have an interest in technology.
Explore the use of cryptocurrencies in compensation & benefits:
Cryptocurrency can be used as a form of compensation in the same way as tips or gratuities. When employees receive cryptocurrency for a job well done, it can represent a direct payment for their efforts. In addition, cryptocurrency makes possible the development of future benefits such as health care or pension plans. If cryptocurrencies are accepted by employers, they could become an essential part of managing benefits and business costs in the future. Cryptocurrencies are becoming a tool for everyday savings. The value of cryptocurrency can be volatile and is not always predictable, but there are ways to save cryptocurrency and protect yourself from losses. Cryptocurrency banks hold private keys to the owner’s funds which allow the owners to receive their funds at any time, but they cannot be accessed by anyone else. HR professionals should be aware of how bitcoin could change the way they do business. The technology is just starting to catch on, but it has a lot of potential for improvement in many areas where HR practices are concerned- from compensation schemes and employee benefits all the way down through things like performance reviews or even office space! If you want to learn more about Bitcoin then Bitcoin Smarter is the place for it.
Conclusion:
HR should consider how offering cryptocurrency as a benefit can impact recruiting efforts before implementing this benefit. HR should also be aware that certain cryptocurrencies have been fraught with challenges, including substantial volatility, scams, and general uncertainty, almost all of which make them an inappropriate choice for a retirement or savings vehicle. Cryptocurrencies are essentially digital tokens, most of which are used as some sort of medium of exchange. As a decentralized currency, there is no central bank that controls it or regulates it. Instead, most cryptocurrencies use blockchain technology to store data in a ledger which is publicly accessible on the internet and verified by multiple users. Users can then use these tokens to purchase goods or services.
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