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Cryptocurrency Salaries and Company Scrip: What's the Difference?

  • Alex Dovbnya
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    Bitcoin naysayers tell you that cryptocurrency salaries are simply the modern version of company scrip. Is that really the case?

Cryptocurrency Salaries and Company Scrip: What's the Difference?
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Contents

The seemingly obsolete term “scrip” appeared in the limelight during a recent congressional hearing on Facebook’s Libra. Rep. Alexandria Ocasio-Cortez asked the company’s Blockchain head David Marcus whether there was a risk in taking his pay in the corporate-controlled cryptocurrency. Marcus never answered since AOC’s allotted time had already expired.

The question still stands — are cryptocurrencies and company script really comparable?

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Crypto salaries on the rise

“Company script” refers to the practice when businesses issue specific currencies to pay their employees, which is illegal under the Fair Labor Standards Act of 1938. Some of its forms did manage to survive. Specifically, the aforementioned term is still used when companies pay wages in their own shares instead of money. 

In 2019, cryptocurrency salaries are becoming a new thing. If social media giant Facebook announced its plans to pay employees in Libra, then you would expect other businesses to follow suit.

It’s not clear whether Facebook would be able to proceed with its crypto ambitions due to intense regulatory scrutiny, but receiving salaries in Bitcoin is already legal in New Zealand. The country's tax agency has determined that companies are allowed to pay in crypto as long as the digital asset is backed by a stable fiat currency.

Not so fast, crypto fans!

However, according to a recent Financial Times op-ed, New Zealand didn’t endorse Bitcoin, and this recent initiative is simply a way to formalize the tax treatment cryptocurrency salaries.

Izabella Kaminska, the author of the article, went on drawing parallels between this form of payment and company scrip, and used Kate Winslet as an example. The Oscar-winning actress, who appeared one of Who Do You Think You Are? episodes, found out that her ancestor from Sweden had to accept tokens from his estate and forced to steal potatoes because he couldn’t buy food with them.

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What is wrong with Bitcoin?

Winslet’s story does showcase the injustices of the past, but that cryptocurrency comparison didn’t make any sense. Bitcoin, the decentralized cryptocurrency that is not controlled by governments and corporations, is the exact opposite of oppression.

Crypto can be instantly exchanged into fiat money without any volatility-driven losses. Moreover, it’s much easier to purchase things with Bitcoin than with a bar of gold. 

There are thousands of cryptocurrencies, and one shouldn’t paint all of them with a broad brush.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Bitcoin Price Likely to Decline to $7,800: Crypto Analyst

  • Yuri Molchan
    📰 News

    Bitcoin is to find support at $7,800 or recover to $8,300, an analyst writes, but either way ‘continuation of the ranging on either of the levels is going to occur’

Bitcoin Price Likely to Decline to $7,800: Crypto Analyst
Cover image via www.123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last few days, Bitcoin has been trading below the $8,500 area. At the moment, it has recovered to $8,258 after the recent slip below the $8,100 level.

Analysts have been bullish on BTC in the long run, however, the nearest BTC price movements are expected to be bearish.

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The crypto analyst @CryptoMichNL believes that there are two paths ahead of Bitcoin at the moment. If it fails to recover to $8,300, he says on his Twitter page, then the market should be ready for the flagship coin to drop and find support at the $7,800 or $7,300 levels.

Whichever way it goes, ‘continuation of the ranging on either of the levels is going to occur’.

The analyst tweeted this forecast twice with an hour pause.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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