US Companies Are Using Cryptocurrencies To Entice Users And A Younger Workforce
- Companies in the US are employing new strategies to get ahead of the curve.
- The new strategy involves using cryptocurrencies as incentives to attract new staff and clientele.
- Crypto adoption is at an all-time high as retail and institutional investors are wading into the market.
Cryptocurrencies are at the heart of the new marketing strategies used by some US companies. So far, the trend seems to have been working out nicely for some startups amid rising adoption rates.
Labor Shortage – Crypto To The Rescue
As the labor shortage gets to new levels, companies are finding it difficult to fill up their available roles. Accusing fingers have been pointed at the pandemic, strong stock market, and employers creating roles that are unsuitable in luring out people to join the workforce.
In light of the jarring labor crisis, some companies are adding cryptocurrency perks to their job offers. An interesting perk used by some firms in the US is the offer to pay employee salaries in cryptocurrencies. This strategy has found success amongst the younger workforce particularly younger millennials and Gen Zs who are more likely to invest in cryptocurrencies than the traditional stock markets.
“It was a pretty enticing part of the deal coming to work for SharpRank,” said Stephen Gerrits, a college student working with a startup that ranks sports oddsmakers. “I think crypto is a very exciting thing that is going on right now and it is very fun to be a part of,” he told CNBC.
CEO of Sharprank, Chris Adams commented that the inclusion of crypto paychecks will make the brand stand apart from competitors and will help attract a younger workforce. According to a survey conducted by Bankrate, millennials are the largest demographic of Bitcoin holders while Gen Zs are staunch supporters of meme coins and believe that an investment in these assets will earn them a fortune. Recall that in September, Coinbase announced that it was planning on launching a service that will allow users to seamlessly deposit their paychecks into cryptocurrencies via the platform.
Investing in cryptocurrencies has downsides that take some of the shine off it. A major drawback is the challenge of volatility that could send the prices of assets crashing down in an instant. For instance, since hitting an all-time high of $68,789, BTC has fallen by a staggering 31.61% as it trades at $47,305.
Despite the volatility, young investors remain unfazed and are buoyed by the mind-boggling returns posted by assets like SOL, DOGE, and SHIB in 2021. Rising inflation rates are also part of the reasons for young workers to be attracted to cryptocurrencies as the dollar weakens. There is also the challenge of employers making filings with the IRS regarding paychecks paid through cryptocurrencies as a result of the swinging volatility.
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