As the value of cryptocurrency continues its meteoric rise, at least one company is looking to jump on the bandwagon of all that hype.
According to Coindesk, Japan-based GMO Internet Group will soon allow its employees to claim a part of their salary in Bitcoin.
The system will be rolled out in February 2018, and employees will have the opportunity to choose a portion of their monthly salary between 10,000 yen (approximately Rs 5,700) to 100,000 yen (Rs 57,000) to be paid to them in the popular cryptocurrency.
GMO will also supposedly contribute a 10 percent bonus of the amount, to encourage employee investment in the scheme, in their own cryptocurrency called “GMO Coin”. It’s not such a wild move for the company, seeing as it’s already in the Bitcoin business and even launching its own initial coin offering (ICO) next year. ICO is when a company raises capital by selling its own cryptocurrency for an equal value paid in Bitcoin.
However, the move also raises broader concerns about the entire cryptocurrency economy. Many financial experts have called Bitcoin’s meteoric rise a “bubble” saying it’s only a matter of time before it bursts and heavy investors are out for major losses.
For instance, assume you’re claiming a quarter of your salary as Bitcoin for a year, and you think of it as a sort of savings. Then, suddenly, the value of Bitcoin drops drastically over a week. Now, instead of maybe at least a lakh, you instead have savings worth only about Rs 10,000. There’s not much you can do about it, and that sort of change is hard to predict as well. See how dangerous it can be?