In the past it felt like the payment was coming through a carrier pigoen. Yes, exactly it was that slow. It’s literally the kind of thing that makes you wanna scream into the void (but you can’t). But the good news is those days are behind us now. But how you might ask? All because of cryptocurrency.
No more middlemen trying to steal your money. Now you can get paid; just like that. it doesn’t matter where you are, all that matters is you have an online wallet. This is your time to shine now. Want to know more? Read ahead.
6 Reasons Why Cryptocurrency Could Change the Gig Economy
Here are some reasons why crypto can change and even make the gig economy better:
1. Faster Payment, No Waiting Game
Only gig workers know how painful it is to wait for payments. It just takes forever. Why? Because traditional methods like bank transfers or third-party platforms often take days (hell, even weeks) to complete a simple process.
At the same time cryptocurrencies like BTC eliminate this delay from the roots. The process that used to take days, can now be completed within literal seconds. Yes, this is actually true.
Take for example a freelancer designer working for an oversea client. He or she can now receive their payment in minutes using crypto instead of waiting for cross-border bank transfer to clear (which sometimes gets stuck as well).
2. Lower Fees, Higher Earnings
Gig workers are already working on less wages and then transaction fees can feel like a burden. But not anymore. Cryptocurrency eliminates these fees by cutting out the middleman. For instance, many platforms now accept Bitcoin payments only because it saves time and has significantly lower fees.
Even PayPal asks for 5% for such payments and crypto just does it for almost free. These little savings mean a lot to gig workers who’re already making less. They can now keep more of what they earned rather than burning it because of fees.
3. Global Market on Your Fingertips
Gig workers and freelancers, especially from smaller countries, often miss out on foreign clients only because they don’t have a reliable payment method. But crypto has now opened up so many doors for such workers. Crypto has no borders.
So, if you’re a content writer in Pakistan or a virtual assistant in the Philippines, you can easily accept crypto payments from clients in the US or Europe without worrying about currency conversion, fees or anything else.
4. No Bank Account, No Problem
Many gig workers and even normal individuals still don’t have access to traditional banking services. So what can they do now? Use crypto obviously. This way they can participate in the global economy without even going to a bank.
All they need is a smartphone and an internet connection and that’s it. Even in 2023, 4.2% of households in the U.S. didn’t have access to any banks or they didn’t get one internally.
5. Security Through Smart Contracts
Smart contracts are like a bodyguard to the money. What they do? Protect your money with their life. The payment is auto released when the work is submitted. The benefit? Fewer scams.
This is a life-changer for people who find it difficult to trust people because of their past experiences. To understand you can take an example of a web developer and a client who agree on a milestone. Now, once the milestone is completed, the smart contract will automatically release the payment.
6. No Issues with Converting Currency
Thank God crypto exists. Why? Because conversion fees drain all the profit. Crypto lets you keep most of your money that you earned.
Just convert your crypto payments into your own local currency whenever you want to. It’s actually that simple. If you don’t know how it works, just go watch a video on YouTube. Search for how to use P2P (can’t simplify it more).
Risks You Should Be Aware Of
The potential benefits of crypto far outweigh the risks but even then you should know the challenges you could face if you choose to walk on this path. You’ll have to deal with:
- Volatility: Cryptocurrencies experience drastic price changes which could affect the value of the payment you receive.
- Regulatory Uncertainty: The legal status of crypto varies by country so check yours before proceeding.
- Adoption: Your client might not be comfortable with this payment method. However, there are only a few such clients now.
Anyhow, you don’t have to get into these. Simply use stablecoins for payments such as USDT or USDC.
Final Thoughts
Cryprocrucy has all the right elements to change how the gig economy currently works. Get into crypto ASAP especially if you’re a freelancer or a gig worker. It will be helpful in the long term, trust me. Also, with Trump being in favor of crypto, it will only rise from here. Next few years are one to watch they shape the gig economy forever.
