There’s no disputing that bitcoin has grown in popularity in recent years. Bitcoin, Ethereum, Dogecoin, and a variety of other cryptocurrencies are just a few examples. While the phrases cryptocurrency and Bitcoin are sometimes used interchangeably, they are not interchangeable. Bitcoin is just one sort of cryptocurrency; there are many more.
You may have heard of celebrities and other well-known persons receiving payment in cryptocurrencies. Eric Adams, the next mayor of New York City, has stated that he would get his first salary in Bitcoin. Aaron Rodgers of the Green Bay Packers and Odell Beckham Jr. of the New York Giants both accepted some of their pay in cryptocurrencies.
If you’re thinking about being paid in bitcoin, there are a few things you should consider. The first is that your company will most likely continue to pay you in US Dollars (or the local currency where you live). You’ll just turn those money into bitcoin right now. That implies that although you will benefit if the value of your cryptocurrency increases, you will also be at risk if the value of the cryptocurrency decreases. Beckham, the NFL star, may have discovered this when his $750,000 paycheck was projected by some observers to have plummeted roughly 40% owing to the collapse in Bitcoin’s price.
Another thing to keep in mind is that when you hear about celebrities being paid in Bitcoin or other cryptocurrencies, it’s possible that they’re being sponsored by a cryptocurrency firm. So Aaron Rodgers or Odell Beckham might have a sponsorship contract where they make money by promoting a certain kind of cryptocurrency that the average person will not be able to access.
Investing In Cryptocurrency Via Your 401(k)
Another reason that bitcoin is growing more popular is because it is being offered as an investment choice in your 401(k) (k). Many 401(k) plan administrators provide a choice of investment alternatives, and a growing number of them now include cryptocurrencies as one of them.
Keep in mind, however, that cryptocurrency has a history of being an extremely volatile investment, with large up and down swings. You may not want to invest all of your retirement funds in cryptocurrencies, depending on your risk profile. A better plan would be to invest a part of your 401(k) or IRA in bitcoin while keeping the rest in conventional asset classes such as equities or bonds.
Using cryptocurrency in Mint
As part of our investment monitoring service, Mint offers bitcoin tracking. If you have bitcoin assets, Mint makes it simple to keep track of them. That way, you’ll be able to monitor how changes in bitcoin value effect your whole portfolio and net worth.
The Bottom Line
Over the last several years, bitcoin has grown in popularity, and a growing number of businesses are allowing workers to be paid in cryptocurrency. This includes the option of receiving part or all of your income in bitcoin, as well as the ability to invest in cryptocurrencies via the company’s 401(k) plan. Before you invest in cryptocurrencies, be sure you understand the risks and rewards, as well as how they relate to your risk profile.