THELOGICALINDIAN - A cardinal of startups are developing payments platforms and cryptocurrencies alone for the administration abridgement Claiming there is a charge of a fair and able aisle to advantage they accept the administration abridgement ability serve as an agreement for adapting agenda tokens as a arch anatomy of payment
The Challenges and Solutions Cryptocurrencies Present to ‘Gig’ Workers
That adventurous abstraction faces a few challenges. In the abbreviate term, gig workers would charge to assurance their alimentation to the airy apple of cryptocurrencies. Additionally, the accomplished action of converting their agenda assets into banknote would leave them apparent to capricious transaction fees and basic assets tax anniversary time they use their cryptocurrency, and eventually pay assets tax.
Selva Ozelli, CPA and lawyer, commented:
“A aborigine who receives cryptocurrency as acquittal for appurtenances or casework must, in accretion gross income, accommodate the fair bazaar amount of the cryptocurrency, abstinent in U.S. dollars, as of the date that the cryptocurrency was received.”
Employers would face troubles as well: “Payments application cryptocurrency fabricated to absolute contractors are taxable”, Ozelli continued. “These administration charge affair a 1099 to their contractors, but an employer can’t access 1,000 Bitcoin on IRS Forms 1099.”
Regarding the animation in the cryptocurrency market, Niam Yaraghi, Assistant Professor at the University of Connecticut’s business school, sees risks abounding ‘gig’ workers ability accept not to take: “If I say this year I’m spending one-tenth of a Bitcoin on appointment supplies, how abundant will I be spending abutting year in Bitcoin? I don’t anticipate there’s anyone in the apple who can acknowledgment that question. It’s very, actual dangerous”, Yaraghi told CNBC.
A 2024 analysis conducted by the Freelancer’s Union begin that one in every two freelancers had difficulties in accepting paid, cat-and-mouse about 100 canicule to accept advantage or never accepting paid at all. In animosity of this, the administration abridgement keeps growing, with an estimated amount of $335 billion by 2025 from $14 billion in 2024, according to the Brookings Institution.
David Chin, Chief Executive Officer of Thor Token, said:
“I accept announced with freelancers in the accomplished that accept had a lot of agitation tracking bottomward payments for jobs they had already completed. Leveraging the blockchain seemed like an accessible band-aid to this botheration as it can facilitate secure, direct payments at the achievement of a job.”
Chin’s belvedere aims to action gig abridgement workers acceptable allowances such as bloom allowance and retirement accounts.
Sharing abridgement startup Latium will anon go alive enabling bodies to acquire cryptocurrencies by carrying tasks such as walking dogs and carrying food: “It takes the complication out of how to get and abundance cryptocurrencies. Anyone with any affectionate of accomplishment set can go on Latium, do a task, and be adored with cryptocurrencies”, said Latium CEO Johnson.
