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Author Topic: Started getting paid 100% in Bitcoin starting with my last paycheck  (Read 7010 times)
Elwar (OP)
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January 16, 2015, 10:40:10 PM
 #61

I set up my direct deposit to the account number they provided me...

I wonder if this can be done with other things that are not exactly wages? For example revenue from AirBNB?

They ask for a payroll company. They work directly with payroll companies.

First seastead company actually selling sea homes: Ocean Builders https://ocean.builders  Of course we accept bitcoin.
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justusranvier
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January 16, 2015, 10:43:05 PM
 #62

The awesome thing about getting paid in Bitcoin is how much larger one's paychecks become when the price is low.
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January 16, 2015, 11:12:26 PM
 #63

How tough was it to adjust to the loss of value of your 12/31 paycheck and 1/14?

I think your effort and intent is bold and important, but the reality is that the value of all products and services is still based on fiat prices. If your 12/31 paycheck earned you BTC10 (at $319 per BTC) and the USD price per BTC is $174 on 1/14 you've lost half of your purchasing power from that 12/31 paycheck. How do you handle that?

Your 10 coins from 12/31 can only buy $1740 in goods and service, compared to your hypothetical $3190 pay two weeks earlier.

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January 17, 2015, 12:27:02 AM
 #64

People who don't live paycheck-to-paycheck don't need to worry about short term price volatility.

Suppose someone gets paid twice per month. On the same day they get paid, they should buy enough national currency to cover their next two weeks of expenses, and save the rest of their bitcoins.

Sure, the purchasing power of their savings will be volatile, but the point of having savings is for their future purchasing power, not their present purchasing power. If they needed to be spent right away they wouldn't be savings.
Earnshaw
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January 17, 2015, 12:28:13 AM
 #65

Really wish this was available in other countries and no strickly the usa.
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January 17, 2015, 12:44:04 AM
 #66

People who don't live paycheck-to-paycheck don't need to worry about short term price volatility.

Suppose someone gets paid twice per month. On the same day they get paid, they should buy enough national currency to cover their next two weeks of expenses, and save the rest of their bitcoins.

Sure, the purchasing power of their savings will be volatile, but the point of having savings is for their future purchasing power, not their present purchasing power. If they needed to be spent right away they wouldn't be savings.

Very well said.
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January 17, 2015, 12:45:52 AM
 #67

I would be willing to take a 5% cut just to have this service available to me in my country the US are blessed
Elwar (OP)
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January 18, 2015, 09:19:10 AM
 #68

How tough was it to adjust to the loss of value of your 12/31 paycheck and 1/14?

I think your effort and intent is bold and important, but the reality is that the value of all products and services is still based on fiat prices. If your 12/31 paycheck earned you BTC10 (at $319 per BTC) and the USD price per BTC is $174 on 1/14 you've lost half of your purchasing power from that 12/31 paycheck. How do you handle that?

Your 10 coins from 12/31 can only buy $1740 in goods and service, compared to your hypothetical $3190 pay two weeks earlier.

With dollar cost averaging if I were to spend the exact same every paycheck then it would even out.

But, with volatility I am able to re-think my spending based on the price. If the price drops I might avoid going out to eat that week or hold off on a big purchase. If the price goes up I can treat myself to a nice night out or something I have been wanting for a while.


But I do not live paycheck to paycheck, I did this knowing I have enough to last me about a year or so. My only bills are my rent, my mortgage (which is being paid by an incoming rent check) and gas/food. My rent is about $1k euro which is nice since the euro has fallen a lot against the dollar. Gas costs me about $50 per month, food about 200 euro. My monthly income is over 5 times those monthly bills.

If I want to play it safe, I spend my bitcoins as close to payday as possible. I bought a video game yesterday and by spending bitcoins I got an 8% discount. The price was down about 5% from Friday, so I still come out ahead.

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January 20, 2015, 07:47:33 PM
 #69

I set up my direct deposit to the account number they provided me...

I wonder if this can be done with other things that are not exactly wages? For example revenue from AirBNB?

Just checked this directly with them: it works with AirBNB.
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February 03, 2015, 10:04:01 AM
 #70

I would recommend using bitreserve.org where you can hold your bitcoin in dollars or pounds so you are protected against volatility your money would stay the same in $ or £ but its on the bitcoin network.
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February 03, 2015, 10:14:49 AM
 #71

I would recommend using bitreserve.org where you can hold your bitcoin in dollars or pounds so you are protected against volatility your money would stay the same in $ or £ but its on the bitcoin network.
Seriously? How would that work if, say, I hypothetically were to put one billion € worth of bitcoins in Bitreserve. And then -again, hypothetically- the price plunges (because China bans Bitcoin or whatever) and the total market cap of Bitcoin goes below one billion €. How much bitcoins are they now storing for me on the Bitcoin network?

Don't get me wrong, I highly appreciate services like Bitreserve as they can help a lot in getting new users in while covering their risk. But don't be delusional about how this works: they store fiat, not bitcoins.

Feel free to send your life savings to 1JhrfA12dBMUhcgh85wYan6HL2uLQdB6z9
Elwar (OP)
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February 03, 2015, 10:46:16 AM
 #72

I would recommend using bitreserve.org where you can hold your bitcoin in dollars or pounds so you are protected against volatility your money would stay the same in $ or £ but its on the bitcoin network.

The volatility actually helps in the long run.

I get paid once every 2 weeks. If the price drops during that time I cut back on my spending. If the price goes up I spend more (pay my monthly bills, pay for trips I'm planning, buy something online I'd had my eye on).

Over time, doing this is better than just dollar cost averaging.

(I just wish I was at home to pay my hosting service when the price jumped up over $300, by the time I got home from a long flight the price was back down)

The price is up over the $231 rate I was paid on Friday so I will probably plan my Valentine's weekend trip today.

First seastead company actually selling sea homes: Ocean Builders https://ocean.builders  Of course we accept bitcoin.
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February 03, 2015, 05:57:41 PM
 #73


2) Both my employer and me should have tax release for an amount converted into BTC as this could be treated as company benefit.

If you are simply employed, rather than holding independent contractor status, fill out a new W-4 form every time the IRS comes out with a new one. If you are not in the U.S., you need to do something similar with whatever forms you use. The exceptions are that if you are NOT in a common law country, or if the language is not English, do your research before you do this that I am about to tell you.

1. Download and print out a 2015 W-4. You can find it located here http://www.irs.gov/pub/irs-pdf/fw4.pdf.

2. Write out the W-4 in longhand. Fill in your name, address and SSN in all caps. Do it in blue ink by writing it out yourself, by hand, rather than filling in the blanks using a computer or typewriter.

3. Over the marriage status section print the word "non-assumpsit" in lower case. Don't check any of the marriage status boxes.

4. In the number "4" box, print "non-assumpsit" as in the number "3" box.

5. In the big box that holds numbers 5, 6, and 7, print "non-assumpsit" across it. On the number "7" line, print "exempt" in lower case.

6. Sign and date as usual, except that I would recommend signing in all lower case... even the first letters of each part of your name.

NOTE: Be sure that you have filled all this out by hand, in blue ink, without using a computer and printer.

7. Make, say, a half dozen color copies.

8. Keep the original unaltered in your personal files at home or wherever. Print the word "COPY," slanted, and in red, across each of the 6 copies. Or use a "COPY" stamp that you can buy at an office supply store.

9. Certify mail, return receipt, a copy to your employer. If you work for a large company/corporation, you might mail several copies, one to the CFO of the company, another to the accounting department, a third to your local place of employment if you work at a branch of your company that is not the main branch.

Non-assumpsit means "no contract."

Generally, your employer is supposed to keep W-4 on file, except if the IRS requests a copy of it.

If your employer continues to withhold taxes after you have done this, you have a legitimate legal claim against your employer. If you don't work for the government, your employer is supposed to obey your wishes as listed on the W-4.

If your employer decides to deduct, the deductions must NOT be withheld from your paycheck. Rather, they must be separate funds that your employer sends to the IRS per any agreement he has with them.

If the IRS tells him to disregard your W-4... they don't have the authority to overrule your wishes. Your agreement for pay is between you and your employer. If he withholds, you have a legitimate legal claim against him.

I'm not going to go into the details of method for making your legal claim. It starts with a batch of letter writing to the CFO as a man, not as the CFO. You give him time to respond by seeing to it that you receive your withheld pay. Ultimately if he is the person who has the authority to see to it that you are paid, you make a claim that you have been damaged, that he has done wrong to you, that he has stolen your property. Do this like you would with any common thief. Or do it like you would for your neighbor who stole a valuable tool of yours and won't return it.

Use common sense in writing your letters. Be friendly and gracious, to the point and brief. Finally, if he won't respond, serve notice on him using a process server. Then start a common law (court of record) proceeding against him, man to man, not man to company Chief Financial Officer. Why not to the CFO? Because a CFO without the man can't do anything. It is the man using the office of the CFO who is damaging you.

Ultimately, if the CFO man will not respond by giving you your property (pay) including expenses entailed for process server, etc., take him to court, man to man, not in his office as CFO.

Search through the Youtube files here http://www.youtube.com/user/765736/videos?view=0&live_view=500&flow=grid&sort=da and here http://www.youtube.com/channel/UC5duR4OvEHHxOSdEZhANETw and here http://www.youtube.com/channel/UCwyBESRGpm1vZRErvtSmNGg for info that you might do to accomplish the law suit properly.

Smiley

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justusranvier
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February 03, 2015, 08:29:22 PM
 #74

I would recommend using bitreserve.org where you can hold your bitcoin in dollars or pounds so you are protected against volatility your money would stay the same in $ or £ but its on the bitcoin network.
Of course this is a lie.

When you give your bitcoins to somebody else, they sell them on the market and hold $ or £.

When you want your money returned, they buy back the $ or £ value at current market prices and give them back to you.

Giving your bitcoins to somebody else to hold on for you "protected against volatility" is loaning your coins to short sellers, except in this case you generally pay them for the privilege of borrowing your coins to short with instead of getting paid interest.
Ghepetto
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February 03, 2015, 10:58:36 PM
 #75

Imagine your paycheck was generated during a flash crash... oh my..

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Elwar (OP)
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February 04, 2015, 08:39:17 AM
 #76


2) Both my employer and me should have tax release for an amount converted into BTC as this could be treated as company benefit.

If you are simply employed, rather than holding independent contractor status, fill out a new W-4 form every time the IRS comes out with a new one. If you are not in the U.S., you need to do something similar with whatever forms you use. The exceptions are that if you are NOT in a common law country, or if the language is not English, do your research before you do this that I am about to tell you.

If you are not in the US you can fill out a 673 and check either the Bona Fide Residence Test, or a Physical Presence Test. They will stop taking out taxes until you reach $100k for the year.

First seastead company actually selling sea homes: Ocean Builders https://ocean.builders  Of course we accept bitcoin.
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February 04, 2015, 08:48:31 AM
 #77

Interesting. How much is the fee? Would be a disaster if bitcoin plummeted... It's a risky gamble. Would you mind disclosing how many bitcoins you get? At least do tell the number of digits... How do you pay bills though? Is there a service that helps you pay bills in fiat in exchange for bitcoins?
Elwar (OP)
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February 04, 2015, 09:25:02 AM
 #78

Interesting. How much is the fee? Would be a disaster if bitcoin plummeted... It's a risky gamble. Would you mind disclosing how many bitcoins you get? At least do tell the number of digits... How do you pay bills though? Is there a service that helps you pay bills in fiat in exchange for bitcoins?

No fee during Beta. It would not be a disaster if bitcoin plummeted, I get paid every 2 weeks. I can survive the price going down some over the span of 2 weeks only to have my next paycheck come up less than 2 weeks later.

My last pay two paychecks have been 10 to 13 bitcoins or so.

For bills, there is https://billpayforcoins.com/ but I am not quite keen on their 3% fee, I could use http://www.brawker.com as well. I use localbitcoins to sell bitcoins for euros to pay my rent which includes all utilities. There are several websites I use for day to day spending, here's a breakdown of some of the sites I use regularly: https://bitcointalk.org/index.php?topic=943143.0

First seastead company actually selling sea homes: Ocean Builders https://ocean.builders  Of course we accept bitcoin.
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February 04, 2015, 05:55:10 PM
 #79

This is really cool! you dumped your bank Cheesy
I want to do it too but only if i could live w/o my salary for so long Sad
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February 04, 2015, 06:11:30 PM
 #80

You are trully a pioneer. My concern with this tho is, unless one were to be a die hard enthusiast of bitcoin.. the average joe is not going to want such a volatile ass income.
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