Bitcoin and Ethereum Taking over the Gig Economy
The phenomena of the gig economy is not necessarily a new idea: Freelancers have hopped from job to job contracting their services out to different people and companies for ages. The advent of the internet has only accelerated this process by providing a greater connection between interested parties.
Catering to a New Working Class
However, especially since the millennial’s generation, this has been on an even higher rise. The idea of the “digital nomad,” or one who is regularly traveling and working online, has cropped up. Not only that, but it’s now a common goal for young people looking to tailor their skill sets to work from anywhere in the world.
A problem with this type of work, for anyone that is within this broad demographic, is sometimes getting payment from unsavory and stingy clients. Of course, as BTCManager has proffered on many occasions, the blockchain and cryptocurrencies may offer a reasonable solution.
Startups are attempting to take over this niche in the market, to guarantee payment from clients via smart contracts and hedging funds once work is completed.
In theory, cryptocurrencies would help one in every two freelancers having trouble getting compensated at one point or another while simultaneously easing the issue of currency conversions for clients that are in other countries.
Latium, for instance, is an application going live within the next few months that will allow workers to offer their services, start a contract with an employer, and get paid through the app for a number of different tasks such as deliveries or dog walking.
A large issue for the acceptance of cryptos in this scene is that of accounting. The market is extremely volatile, and when getting paid in bitcoin or ether, budgeting and taxes become a bit of an issue.
Taxes paid on cryptos are the same as any form of payment and are based on the value of the currency at the time received. But as we have all seen, the amount a cryptocurrency is worth at the beginning of the year versus the end of the year can be massively different.
On the other hand, the temperament of a gig worker is suited for this sort of market. Already, freelancers are acclimated to the extreme highs and lows of payment, thus adding another feature of volatility may land in favor for hedging against periods of low work volume.
Further still, the idea of working outside of government financial oversight and being able to connect to employers all around the world is right within the wheelhouse of many freelancers already.
The tenants of being a gig worker involve working outside the standard employment paths, and having a currency suited to this type of work will become a necessity as this sector of the economy grows follows the induction of the next generation.