US media reports college students and employees using Crypto for transactions
A recent media news reported that college students and employees in the US are apparently dealing with cryptocurrencies more often; college students invest in digital currencies using their loan money while employees in the crypto industry get paid in cryptocurrency.
A survey conducted between March 16-20 by the Student Loan Report revealed, 21.2 percent of the college students seem to have used loan money to support cryptocurrency investment. By doing so, the students are venturing to take advantage of upward price volatility in Bitcoin (BTC) or Ethereum (ETH) to pay off their debts faster.
Though it could be taken into account about the fact that Bitcoin prices soared from $1,000 to $20,000 in 2017, using loan money for investing in an extremely unpredictable market could result in higher debt, especially when considering student loan interest rates.
The uncertainty, however, does not intend to scare industry insiders who prefer to take their pay in cryptocurrency. CNBC published March 26 that 52 employees of BitPay payment processor prefer to get their salaries fully in Bitcoin, without linking any part of their salary with fiat money.
A regulatory affairs counsel, Jeremie Beaudry, who is being paid in Bitcoin on a weekly basis, says that he “[does not] care about changes… I am from the traditional banking world… But I think my approach to finance has changed. …Not being in it is dangerous than being involved in it. “
Medici fintech firm, last year, offered its workers to take an annual bonus in Bitcoin. Jonathan Johnson, president of Medici Ventures, noted :
“I am long-term bullish on it; that was an easy decision for me, but the bonus is worth less today than when I got it.”
Johnson says, employees should be paid in cryptocurrencies which is an “exponentially cheaper” way compared to the traditional banking system. There are a number of companies that offered to pay workers in crypto, however, it is still “more about employees asking for the option than corporate treasurers trying to save money,” according to Nathalie McGrath, director of people at Coinbase.