Who is buying cryptocurrencies such as Bitcoin and the increasingly long list of altcoins? In July 2018, HR blockchain startup ChronoBank surveyed 445 cryptocurrency enthusiasts from all over the world including the US, Australia, and Russia to learn more about this emerging financial landscape.
Results of the survey revealed that 92% of the respondents were male, and 40% were aged between 25 and 34 and 75% are currently employed. Generally, they are crypto investors, freelancers, and workers at IT companies who represent early adopters who are navigating the unchartered digital waters of crypto.
Although 85% of respondents were already holders of digital currencies, they held relatively modest assets. For example, 37% have cryptocurrencies worth less than $1000, and 26% had up to $10,000 at their disposal. From all the crypto investors surveyed, only 14% had a cryptocurrency portfolio valued at more than $25,000.
Payments in crypto
Despite the active development of the crypto-currency and blockchain economy in 2016–18, employers are not taking advantage of these new technologies. 72% of respondents stated that employers never offered them to switch salary to payments in cryptocurrencies.
However, 65% of those surveyed expected that their employers should embrace technological change and that they would be willing to receive wages in cryptocurrencies. By contrast, only 42% of females were ready to be paid in crypto.
However, an incredible 80% of respondents were more than happy to receive their bonus payments in cryptocurrencies. But what would your average employee choose as their crypto coin of choice?
Predictably 37% opted for Bitcoin, and 35% would choose Ethereum. Ironically, unemployed respondents appear to see the digital landscape a little differently with 40% of those surveyed preferring Ethereum and only 35% would select Bitcoin as their token of choice.
Most revealing was that 75% of those surveyed said they would prefer an employer who has the salary payment option in the cryptocurrency when choosing their next place of employment. These results suggest that employers need to get up to speed with crypto sooner rather than later.
What did the survey reveal around the motivations of individuals for embracing digital currencies? Access to quick and convenient money transfers appear to be the main advantages in paying salaries in cryptocurrencies. But this answer changed depending on the nationality of users.
For example, 37.5% respondents in Australia think that the most significant benefit of getting paid in crypto is tax avoidance. However, the majority of respondents still believe in the growth of the value of digital assets in the future.
50% believe that receiving a salary in cryptocurrency would help them spend less only 19% would use it to make transactions. Why? Because if they left their crypto in their wallets, there is still an expectation that the value would increase. For younger people in the 18–24 bracket, the number of holders is even higher at 60%.
Users are aware of the potential risks that surround cryptocurrencies, but almost half of the respondents are much more concerned about the price volatility of digital assets. Younger people in particular (18–24) are more concerned about being the victim of an attack by a hacker than price volatility.
Conversion of cryptocurrency into fiat at receiving salary would only be carried out by every fifth respondent. At the same time, only half of those polled are ready to pay taxes on their digital revenues, and about 25% have not yet decided.
Although 65% of those surveyed in the US was prepared to pay taxes, in other countries such as Russia, only 30% are ready. But it’s important to highlight that overall, 62.5% of younger people are much more willing to pay taxes on crypto globally.
Even though there are ongoing changes in the legislation of different countries in the field of cryptocurrency, audiences are still not adequately informed about the innovations. Almost half of the respondents do not have enough information on whether salary payments in cryptocurrencies in their countries are allowed.
Only 33% stated that they know that the relevant transactions are permitted in their country. In the USA — 43,5% know it’s allowed. Meanwhile, in Russia, the most common answer that it is not allowed (48%) and Russians understand about that.
Despite the readiness of the respondents to receive funds in the cryptocurrency, most of them doubt that the companies will switch to salary payments in the cryptocurrency. Only 30% of respondents believe that companies in their country will change to paying salaries in digital assets. Surprisingly, in the USA it’s even lower, but in Australia, people are more optimistic.
With respect to the regions that will lead to the payment of salaries in cryptocurrencies, Japan (32%) is leading the way. The US (15%) and South Korea (15%) are next in line, but US respondents believe more in South Korea (25%) than in Japan (only 13%). In Russia, 47% believe that Japan is the complete leader in the industry. 57% of respondents are confident that such initiatives will positively affect the economic growth of countries. By contrast, US respondents (47%) are a bit more skeptical than average.
In the field of HR, the majority of respondents are confident that the blockchain will be used as a secure system for payments. About 22% also believe that the blockchain will not be limited to this sphere and will allow employers to verify the data of employees using this technology.