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Should I Get My Salary in Crypto?

Should I Get My Salary in Crypto?

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The Key Advantages of Digital Currency Salaries



New market opportunity


The Disadvantages of Crypto Salary Payments



Difficulty to Use



Should I Crypto or Not?

Despite Bitcoin and crypto currencies becoming a common alternative to fiat currency transactions, financial institutions still has an upper hand over digital assets in the area of salary payments.

While daring effort have been made by brands such as BitWage; which provides payroll services and allow organizations to pay workers a portion of their salaries in BTC, a lot of us still choose bank accounts as our default choice. Let’s look at the Advantages and disadvantages of receiving your salary via Bitcoin.


The Key Advantages of Digital Currency Salaries


Prior to the pandemic many freelancers had adopted the work from home system but COVID-19 and the gig economy also meant compulsory working from home and online for many freelancers. Some of these people own businesses online and that suggest they have clients away from their location and around the world. For such service providers, a major challenge they may face working with clients around the world is exchange rate being too expensive and eating into their profit.

Advocates claim that Bitcoin transfers are more cost effective than using PayPal or a remittance service, and Bitcoin payments can be converted into U.S. dollars easily.


In the case of a dispute, Blockchain also provides an accurate, transparent record of the wage settlements that have taken place. And, if an employee continues to maintain their BTC, particularly in a Bull Run market, they could see the value of their salaries increase over time.


Accepting Bitcoin salaries may even offer freelancers new market opportunities, opening up their network to crypto companies and startups that also pay employees in crypto than more conventional companies.


Funds received in an Ethereum or Bitcoin wallet arrives quickly and that’s an added advantaged compared to the old- fashioned bank accounts which may often take days or weeks to clear salary transfers, greatly inconveniencing those who have bills to pay.


The Disadvantages of Crypto Salary Payments


While some of the irritating issues associated with bank accounts and credit cards are solved by digital currencies, they also generate completely new problems. Employees would also have to pay income tax, although many accountants are conversant with how cryptocurrencies run right now. And, if, after being paid, Bitcoin salaries increase significantly in value, the question of capital gains tax might arise.


The instability of cryptocurrencies such as Bitcoin, Ethereum and Bitcoin Cash also means that their value could fall significantly in the span of a few hours except these digital assets are quickly converted into a fiat currency.

Let’s say you received $4,000 monthly salary in BTC on Thursday mid-day, only to find out at Thursday mid-night that a flash crash occurred and that means it’s now worth $2,200. When you explain why you can’t pay your rent, your landlord may not be too sympathetic. It puts you in a tight corner.


In as much as it would be a huge boost for mainstream adoption to use Bitcoin to pay workers, the average user might find it difficult to understand cryptocurrencies and crypto mining. Bank accounts are fairly simple and easy to use. If they forget their password or attempt to send funds to the wrong place, there are also safeguards that protect them.

Some cryptocurrency exchanges do not provide these safe guard features, which mean that if a long Bitcoin address is typed incorrectly, there is a chance of making expensive mistakes.

Ethereum vs Ethereum Classic

Ethereum vs Ethereum Classic

Ethereum and Ethereum Classic are similar names and they both have a complex common history… What separates the two cryptos?

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What’s the difference between Ethereum and Ethereum Classic, and how did we end up with a common name for two cryptocurrencies? Is there a fractured group of bitter rivals out there throwing shades at each other after violently disagreeing on the future of blockchain?

Well, it’s a complex story, one that prove humans will can still play an important role in any platform’s future…even in a decentralized space and code is not inherently “law.”

There was a time, as you would guess, when only one Ethereum ecosystem existed. A hard fork emerged during one of the most critical events in cryptocurrency history, producing two separate implementations of the blockchain network.

Ethereum and Ethereum Classic

The history of the original Ethereum network started back in 2013, when Vitalik Buterin’s proposal for a new programming language did not gain much traction inside the Bitcoin community.,

Buterin argued for a new programming language to be generated by Bitcoin that could automate tasks and allow apps to be built on top of its blockchain.

He went ahead to raise funds through a crowdsale since there was no much interest in his idea. One of the biggest crypto fundraising campaigns, amassing 25,000 BTC with a market capitalization of $17 million at the time, took place in July 2014.

Ethereum — a global, open-source software platform — was birthed.

The platform allowed the development of decentralized smart contracts, which are mainly agreements between two parties that are written in code. Once the conditions in the agreement are met, the contract is processed automatically by the blockchain. Smart contracts are very appealing to many businesses because of the combination of blockchain’s immutability, teamed with its open-source functionality.

However, fast forward to summer 2016, and one of the most spectacular crypto attacks in history unfolded, altering the course of Ethereum for life. The most suitable course of action was considered a hard fork, with most developers opting to upgrade to Ethereum. This left the original blockchain out in the cold to find its own course, now known as the Ethereum Classic. All this chaos was ignited by the decentralized autonomous organization.

The DAO: Decentralized Autonomous Organization

In its core, a highly promising concept was the DAO (which stood for decentralized, autonomous organization), giving many would-be investors and entrepreneurs an opportunity to pitch and back proposals, with both sides reaping the benefits if they were effective.

It was basically a decentralized Kickstarter that used the Ethereum blockchain and operated via a set of smart contracts and worked by a series of smart contracts. In April 2016, it raised more than $150 million or 12.7 million Ethers, making it one of the biggest crowd funding campaigns in history.

To get engaged, you needed to purchase DAO tokens using Ether. Then you could use your tokens to vote on whether to support a particular decentralized application (DApps). A share of the investment funds from the DAO would be awarded to projects that earned more than 20 percent of the community support.

The DAO was a good way to promote Decentralized Investment- preventing management types from making a final decision as to who received funding but there were some significant weaknesses which would eventually lead to its demise.

The “Split Function,” which was developed as a way to allow an investor to withdraw their support from a project, was a major flaw. Once you decide to withdraw your investment, you would get your Ether back and have the option of making a “Child DAO.” The only rule was that for 28 days your funds could not be accessed. Although the public ledger would be updated, and everybody was satisfied until DAO exploit happened.

The DAO Exploit

The DAO was taken advantage of on June 17, 2016. In order to understand what happened, let’s go back to the splitting feature, which was repeatedly activated to drain the DAO of 11.5 million ETH at the time worth $50 millio. The quantity taken constituted approximately one-third of the DAO Ether.

In the blockchain code, the exploiters discovered a loophole that meant the network repeatedly refunded the same DAO tokens without registering the transactions on the public ledger.

And how did this come about? Well, one major problem was that the probability of a recursive call was not taken into account by the coders of the DAO smart contract. The smart contract was also developed so that ETH will be refunded prior to updating the internal token balance.

The individual or individuals responsible were unable to run into the sunset laden with virtual assets. There came into play the 28-day rule of not being able to reach your funds, which meant that the Ether was not entirely lost. The group was left attempting to pick up the pieces and examine the damage. Eventually, the individual or individuals also stopped draining the DAO, even though they could have persisted.

Also, the problem did not come from Ethereum rather it was an exploited vulnerability within the DAO code, which was created on the Ethereum blockchain network. Nevertheless, it was extremely reputably harmful for Ethereum, and this meant that the team needed to redeem itself quickly.

The problem was the bitter disagreement about how to correct the situation. Many argued that blockchain should be immutable, so nothing should be done. Other virtual assets have been attacked in the past without having to hard fork to reimburse those who have laughed.

A vote was taken after much deliberation within the community about the adopted Ether, and it was decided that the best course of action was to hard fork and reimburse all affected token holders. The hard fork allowed the stolen funds to be sent to an account which could be accessed by the original owners.

This left Ethereum Classic as the initial chain, with the tokens unexpectedly taken from the DAO left untouched with the exploiter. On the other hand, Ethereum was the chain that returned the tokens.

Ethereum vs Ethereum Classic

Which is the best digital asset amongst the two?

It’s worth noting that the hard fork was seen as particularly controversial when comparing the two and was hotly debated at the time. However, for many, it was the only way to save the prestige of Ethereum But for some; it was a betrayal of what blockchain technology set out to do: avoid things being exploited on the basis of a human whim.

As a consequence, the ETC group believes that they have remained true to the principle that the blockchain should never be altered. Their network includes the original blockchain showing every transaction, including the exploit. Ethereum critics claim that for any reason considered worthy enough to violate the rules, future forks might end up taking place.

In comparison, the Ethereum group thought they had to take drastic action because so much investor money had been taken, and confidence in Ether was dropping. Ethereum benefited from the encouragement and support of co-founder Vitalik Buterin, who within the community is highly respected and influential.

Ethereum is still more prominent today than Ethereum Classic and has the business backing of Enterprise Ethereum Alliance, which has more than 200 members, including financial heavyweights such as JPMorgan and Citigroup. In 2017, it was home to a flurry of ICOs, it is supported by nearly all crypto currency exchanges, has a wider development team via the Ethereum foundation, and this Ethereum edition is now at the core of decentralized finance.

The Ethereum Classic network has a market cap of around $890 million as of February 2021-a tiny fraction of the $164 billion value of Ethereum. This is partially attributable to how the ETC chose to follow in Bitcoin’s footsteps by restricting the availability of coins to about 210 million. In contrast, at steady rates with no hard limit as to how much digital currency can be mined, Ethereum produces Ether.

Another distinction between the two is that the Ethereum chain will soon be revised to follow a proof-of-stake (PoS) algorithm from a proof-of-work (PoW) consensus system in an improvement known as Ethereum 2.0. This should mean that the Ethereum network will be faster, more efficient, and transactions will be able to scale significantly. As the fork meant that the new blockchain was not backward compatible, many in the Ethereum Classic camp are waiting to see if they would all follow in the same direction.

What’s next for Ethereum and Ethereum Classic?

In December 2020, the largest derivatives marketplace in the world, the Chicago Mercantile Exchange (CME), publicly announced that it will launch Ethereum futures in February 2021. If the United States Commodity Futures Trading Commission (CFTC) signs all off, the future could look even more positive for Ethereum. The derivatives would allow investors to bet on an underlying asset’s future price without actually having to own it.

The future of the Ethereum Classic is not so obvious, and looks less promising than that of the Ethereum. Many developers have lost trust in the network following a series of 51 percent attacks and analysts have suggested that ETC needs to move to a PoS consensus system in order to prevent potential hacks.

Will Bitcoin boost the demand for Altcoin?

Will Bitcoin boost the demand for Altcoin?

As Bitcoin breaks $41,000 for the first time, should we expect altcoins to follow?


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The question on everyone’s lips with Bitcoin’s price clearing customs at Crypto La La Land and moving past $40,000 on Jan. 7, 2020 is (and by everyone we mean those who sold at $19,000)-when does the altcoin season begin?

All their remaining frostbite-ridden fingers are crossed by the few altcoin investors who HODLed through the “crypto winter” of 2018 (which caused most altcoins to lose up to 95% of their value).

With a so-called “green sea” of altcoin values beginning to splash more regularly through crypto indices, their optimism is catching on, many assume that after a miserable past three years, altcoins are due for a huge leap in 2021.

Anyone who has invested and traded for more than a few months in cryptocurrencies other than Bitcoin will be aware that the success of the so-called altcoin market is very closely linked to that of Bitcoin.

In terms of price correlation with BTC, Altcoins run the gamut; often they spike in value with Bitcoin, sometimes their values remain relatively unchanged. Most times, the value of altcoins crashes twice as fast as Bitcoin’s in times of extreme market upheaval. Are there any patterns from which to distinguish this?

BTC’s lift on altcoins can not be boiled down to a simple yes or no, and even the most basic conclusions are very difficult to verify. The price rise of Bitcoin is combined with huge amounts of trading that takes the spotlight away from alternative assets. Given Bitcoin’s current 69 percent dominance of the entire market by market capitalization, this is easy to see. With Bitcoin’s recent surge to a new all-time high, a side-show bull run for other cryptocurrencies was ultimately supposed to catalyze the bullish momentum.

Unfortunately, hopes did not match fact, as is always the case with altcoins. In 2020, at least not. Nevertheless, the price action of the first week of 2021, which has seen many altcoins more than double in value, leaves investors daring to dream.

BTC’s 2020 Lift on Altcoins Applied to Only a Few Coins

The price of Bitcoin ultimately broke its all-time high and the magical $20,000 mark in late December 2020, closing at $38,000 at the time of publishing. For Bitcoin last year, however, it was mostly a lonely ride, as though it soared, most altcoins did not. However, it is important to see that the leading altcoins, such as Ethereum, Litecoin and XRP (at least before its SEC woes crashed its price at one point), have had good gains compared to the U.S. To the pound.

Perhaps the most important rivalry in 2020 for Bitcoin vs. altcoin was that of BTC vs. (YFI), a radically new DeFi protocol that ultimately provided a so-called “flippening,” exceeding the price of Bitcoin by touching $40,000. This was largely because of the rapid growth of DeFi and the relatively limited overall supply of the project. Since then, Bitcoin has regained its top position, and although YFI still leads on his heels, BTC continues to retain its price lead.

Many felt for a while in 2017 that Ethereum will be the first to flip Bitcoin. It has never occurred. Instead, until early 2020, ETH continued to drop in value.

In 2020, Ethereum took a while to get moving, eventually gaining traction in the fourth quarter thanks to its historic launch of the Beacon Chain that kickstarted the migration to the widely awaited Ethereum 2.0, and crossing the $20,000 promised land with Bitcoin. Since then, with a skip and a hop, Ethereum has flown past $1,000 and is currently eyeing its 2017 all-time high price of $1,400.

There is no doubt that a very powerful Bitcoin would finally lift its closest pretenders to the throne.

A pattern close to Ethereum’s has preceded Ripple’s XRP. On Jan. 4, 2018, before a prolonged freefall started that brought it to under 12 cents over the past year, the cryptocurrency hit a staggering all-time high of $3.84.

Buoyed by the bull run by Bitcoin and the Spark token airdrop by Flare Networks in December 2020, XRP climbed to over 70 cents on Nov. 24 until a brief plateau hit by Bitcoin. As the market leader continued to appreciate, XRP’s price then started to fall, eventually crashing to under 25 cents under the weight of the SEC’s announcement that XRP was indeed a security. On Jan. 7, however, XRP was then up by 45 percent again.

The momentum of Bitcoin does not always reflect the dynamics of the entire industry, but rather mirrors the first-mover gain enjoyed by the leading digital asset.

In most ways, the bullish run of Bitcoin is not in line with altcoins.

Ethereum Remains the Altcoin Gatekeeper

Previous bull markets saw an uptrend in Bitcoin until altcoins entered the surge. After Bitcoin hit an all-time high or a peak, alternative cryptocurrencies followed. Innovative Ethereum, the unofficial crypto gatekeeper on which the bulk of ERC20 crypto ventures, DeFi protocols and smart contracts live, stands between this ebb and flow. What happens to Bitcoin and Ethereum affects a few whales with altcoins, such as suckerfish.

This is a rising trend that will possibly continue to be replicated. In general, Altcoins pull back during a Bitcoin bull run. It is only after Bitcoin’s big brother has stabilized and ended her rally that an altcoin uptrend kicks in.

Over time, some deductions have been made by market analysts; they remain speculative, however. The Bitcoin rally has to consolidate and before altcoins can see a sizable rally, Ether’s price needs to break out.

The price of Ether is relevant because, apart from Bitcoin, Ethereum is one of the most trusted cryptocurrencies, and a significant weather vane of pending price action. By effectively pioneering both the 2017 ICO boom and the emergence of the fledgling decentralized finance (DeFi) industry in 2020, Ethereum claims its place in space as the most trusted altcoin.

In order to increase the altcoin trading rate, the market for DeFi protocol tokens was instrumental. If the market for DeFi tokens takes a nosedive, however, the momentum will change in favor of Bitcoin.

Can Altcoins Lift BTC?

Short reply. Often not. Altcoin rarely improves Bitcoin. Bitcoin was seen as the biggest beneficiary who would see a spike in mainstream exposure to cryptocurrencies when Facebook launched its Libra project in mid-2019. Libra (now Diem) brought a great deal of attention to the crypto market, which, in turn, played in favor of Bitcoin, the highest-profile digital asset.

However, the majority of altcoins experienced significant drops in value as the blue-chip partner consortium of Libra served existing leaders in the very industries that altcoins had announced they were disrupting.

Since then, a violent backlash by regulators has suffered from Facebook’s much-maligned stablecoin project, forcing it as rebrand to Diem.


It would seem that the original cryptocurrency typically swiftly steps in to retake its throne after altcoin pumps have run their course and asserted so much dominance from Bitcoin.

Altcoins Shoot Themselves in the Foot

The BTC lift on altcoins has more to do with altcoins than Bitcoin, or lack thereof. Bitcoin serves as the crypto industry’s gold standard. Completely decentralized and liquid, the leading digital asset is eligible for trading on virtually every crypto exchange on the world. This builds trust among investors.

For altcoins, however, the tale is quite distinct.

Some of them are not as good, though there are good altcoins on the market, and others are just a catastrophe waiting to occur. The bulk of the ICO boom ventures in 2017 have failed, leaving investors suffering from financial losses. In fact, it has been estimated that 85% of all ICOs are actually scams. Investors who have stayed in the crypto industry may have selected the most trusted assets to consolidate. As the flag bearer for the virtual asset market, Bitcoin is the obvious choice.

Exit scams have now become synonymous with Altcoins. Bitconnect, which made off with more than $3 billion in investor capital, is a good example. It was a few years ago that the market might no longer be the wild west, but investors are shying away from shady altcoins. As investors pour their money into Bitcoin, this affects the wider Altcoin market. What leaves altcoins behind is the vote of confidence in Bitcoin.

Also, liquidity is a factor. Less common altcoins suffer from inadequate liquidity in the market, opening them up to market and price manipulation by larger investors (whales), resulting in extreme price volatility and an unlikely prospect of a potential 51% assault.

BTC’s Lift on Altcoins: Hope for the Future

Retail investors pumped up the market in the early days of the crypto market. As long as they saw the potential for fast and runaway gains, they invested in all sorts of altcoins.

With many cycles of booms and busts enduring in the market, institutional players are joining the fold. On Bitcoin, they bet big, and less on altcoins. In Bitcoin’s favor, this holds the momentum. It will be a while before altcoins can be completely lifted by BTC.

Ethereum, seen as the silver to the gold of Bitcoin, is the hope of the demand for altcoins. For Ethereum, the beginning of bullish momentum may be the beginning of the so-called altcoin season. Altcoins face the mammoth challenge of keeping up and taking back some of Bitcoin’s lion’s share of the business, with Ethereum already firing on all decentralized systems.

Altcoin investors, meanwhile, have a straightforward question to sort out: are you a crypto suckerfish or just a plain sucker?

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