Cryptocurrencies and the Gig Economy: How freelancers can benefit from digital currencies
In recent years, we have seen an immense shift in the job market. Gone are the days of 9-5 office jobs being the only option for people. Enabled by digital technology and fueled by changing attitudes towards work, more and more people are choosing freelance work over traditional employment.
Gig economy is on the rise, and people are finding creative ways to sell their talent and services. This is particularly true and beneficial for the talent in Pakistan, as the currency is devaluing significantly, and people are exploring freelancing options more than ever to provide services in the international market to earn a competitive fee for their services.
In response to the continued growth of the gig economy, freelancers are seeking ways to make payments that are more efficient and cost-effective. Digital currencies, or crypto currencies like bitcoins, are emerging as a popular option for freelancers to receive payments from clients.
Listed below are five significant benefits of opting for digital currencies as a payment method for freelancers in Pakistan.
Instant Payments
The biggest benefit of carrying out transactions in digital currencies is that the payments are almost instant. Since no banks or intermediaries are involved in the transaction, freelancers can get the payment for their services without any wait or delays. An important thing to note here and generally when trading in digital currencies is to use a reliable exchange and wallet for transactions and storing your currencies.
Lower Transaction Fees
Payments via digital currencies, in essence, eliminate the need for any intermediary as the entire process of sending and receiving payments is decentralised. This means that the employers can use their digital wallets to transfer the money, and freelancers can easily receive that payment in their digital wallets.
Digital wallets eliminate the need for banks or other third-party applications for funds transfer. As fewer intermediaries are involved, transaction fees will be lower, resulting in higher take-home income.
Access to Global Market and Opportunities
One of the biggest reasons for the rise of the gig economy is the accessibility it offers. The world is truly your oyster now and the talent has become global. Crypto based payment modes add another dimension to the concept of the global economy. When accepting payments in cryptocurrencies, as a freelancer in Pakistan, you don’t have to worry about where your employer is geographically located and vice versa.
While other digital payment options are still not available in Pakistan, crypto exchanges, for example, Binance is operating and providing support in the region. This presents a plethora of global opportunities to you as a freelancer.
Now, let’s have a look at the flip side of it - cryptocurrencies are accepted as a viable mode of payment by leading vendors and you can purchase things like airline tickets, cars, real estate in the international market.
Digital currencies are highly liquid and can easily be exchanged into a fiat currency from almost anywhere in the world. Hence, making cryptocurrencies truly a global currency well suited for a global market that the gig economy is shaping.
Secure Transactions
Another crucial advantage of digital currencies for freelancers is increased financial privacy and security. Unlike traditional payment methods, digital currencies use advanced encryption techniques to ensure anonymity and secure transactions. This can help freelancers protect their financial information and prevent the risk of fraud or identity theft.
Investment Opportunity
Possibly the biggest advantage for freelancers in Pakistan receiving their payments in cryptocurrencies is that they are a viable investment option. Not only you’re receiving your payment, but your service fee is also becoming your investment.
If you invest or accept payments in digital coins that are pegged with international currencies like USD, you will completely eliminate the risk of your money devaluing. Even better, you can easily manage all your funds from a single location via your exchange platform.
It is extremely important to research your exchange platform and ensure you are using the right one for all of your crypto transactions. Do your research and understand about the underlying fees, the platform’s reliability, support, availability etc. for a hassle-free experience.
Overall, digital currencies offer freelancers a reliable and efficient way to receive payments in Pakistan. With lower fees, faster processing times, and increased privacy, freelancers can focus on their work, and explore more opportunities internationally, instead of worrying about the intricacies of the payment processing.
As the gig economy continues to evolve, digital currencies are poised to play an increasingly important role in the lives of freelancers.