Started getting paid 100% in Bitcoin starting with my last paycheck

[687_2]

I work for General Dynamics, a company that is suckling on the US government's teet. They would never risk their sweet military industrial complex relationship with the government by accepting bitcoins.

I use bitwage.co (I do not work for them, just happy that I can get paid in Bitcoin).

I set up my direct deposit to the account number they provided me and my last paycheck it was all converted to bitcoins automatically. My bank never saw a penny of my paycheck.

That is the first step in dumping my bank forever.

For spending money I usually sell on localbitcoins for a profit anyway so I always have some cash on hand. And pretty much anything I want online can be paid in Bitcoin.

Thanks for this post, I did not know this was possible with bitwage.co

So you simply tell HR that you need your direct deposit route/account numbers changed, and provide them with new numbers provided by bitwage.co - then do you provide bitwage.co with a new BTC receiving address each month? Their website isn't very clear on how any of this works and didn't inspire much confidence.

[Soros Shorts]

I work for General Dynamics, a company that is suckling on the US government's teet. They would never risk their sweet military industrial complex relationship with the government by accepting bitcoins.

I use bitwage.co (I do not work for them, just happy that I can get paid in Bitcoin).

I set up my direct deposit to the account number they provided me and my last paycheck it was all converted to bitcoins automatically. My bank never saw a penny of my paycheck.

That is the first step in dumping my bank forever.

For spending money I usually sell on localbitcoins for a profit anyway so I always have some cash on hand. And pretty much anything I want online can be paid in Bitcoin.

Are you keeping track of capital gains for every bitcoin transaction you make? Every BTC you get through bitwage.co is now "on the grid" and presumably you'd need to be able to account for how you spent each one of them in the event of a potential IRS audit. I am curious how you are going to deal with all the additional bookkeeping?

[btckold24]

man this is scary lol. How will you pay your mortgage and bills? Or maybe your debt free which if so seems like a fun idea to try out.

[Elwar]

Thanks for this post, I did not know this was possible with bitwage.co

So you simply tell HR that you need your direct deposit route/account numbers changed, and provide them with new numbers provided by bitwage.co - then do you provide bitwage.co with a new BTC receiving address each month? Their website isn't very clear on how any of this works and didn't inspire much confidence.

That's exactly how it works, I provide a receive address to bitwage.co and can change it if I want.

Are you keeping track of capital gains for every bitcoin transaction you make? Every BTC you get through bitwage.co is now "on the grid" and presumably you'd need to be able to account for how you spent each one of them in the event of a potential IRS audit. I am curious how you are going to deal with all the additional bookkeeping?

Yes, to any IRS agent reading this I do all of my taxes, especially when using localbitcoins.

Actually, for me it is fairly different. I live overseas so I do not pay income tax up to my first $100k of income. I live in Germany where Capital gains on bitcoins is zero after a year. So I can buy and hold all year with these coins and spend my other coins. Simple enough to keep track of with one address for income. I can just change addresses in a year and start spending this income.

How will you pay your mortgage and bills? Or maybe your debt free which if so seems like a fun idea to try out.

Actually, I do have a mortgage on a house I own in the US that is being rented. The rent goes to my bank account which I send to the mortgage company each month. I need to figure out this last piece of the puzzle. Australia already has a Bitcoin bill pay company, hopefully someone in the US sets one up.

I pay cash for my rent here which includes utilities, so all I need money for is food and gas. Converting Bitcoins to euros is a lot cheaper than dollars to euros.

[pereira4]

This is the true future and use of bitcoin, if we want it to be solid, we need the ability to get paid in it for serious jobs, not posting on forums or whatnot. The thing is, I dont really understand how it works for you... do the workers know you get paid in btc? they know your btc address? you bypass 100% taxes (you said banks dont know shit), and you can really trust bitwage? I dont feel too safe giving them personal info.
All that stuff I dont understand and have to check it out.

[Elwar]

This is the true future and use of bitcoin, if we want it to be solid, we need the ability to get paid in it for serious jobs, not posting on forums or whatnot. The thing is, I dont really understand how it works for you... do the workers know you get paid in btc? they know your btc address? you bypass 100% taxes (you said banks dont know shit), and you can really trust bitwage? I dont feel too safe giving them personal info.
All that stuff I dont understand and have to check it out.

My employer has no idea I am getting paid in BTC. Bitwage is like a reverse BitPay. BitWage gets paid in fiat from my company via direct deposit and converts it to BTC for me.

My company takes care of my taxes, 401k, benefit deductions, ObamaCare, etc. before they send on the direct deposit.

As far as trusting bitwage, I trust them about as much as an exchange. They hold none of my bitcoins, the worst they could do is keep one of my paychecks. At that point their whole business would be finished and nobody would use them again. And because they use ACH, my company would probably get the deposit reversed.

[neurotypical]

Really interesting and informative thread, keep it up, bookmarked for later read.

[MicroGuy]

My employer has no idea I am getting paid in BTC. Bitwage is like a reverse BitPay. BitWage gets paid in fiat from my company via direct deposit and converts it to BTC for me.

You sir are a true Bitcoin Hero! A Legendary Hero!

[knight22]

Why don't you use https://bitreserve.org to hedge volatility?

[gkv9]

Dude, congrats on your win in this race going on to make BTC usable at such extent...

Is it available for Indians too?

[knight22]

Dude, congrats on your win in this race going on to make BTC usable at such extent...

Is it available for Indians too?

Not now. They only support US employers ATM but they do plan expanding internationally.

http://www.reddit.com/r/Bitwage/comments/2r6c6b/any_plan_to_support_canadian_employers_in_the/

[EvilDave]

Nice one, Elwar !

This is precisely what BTC needs right now, some positive pressure. If every Bitcoiner with balls enough was to do this, this would go a long way to giving BTC some much-needed stability.

[BitUsher]

I do the same but keep a little bit of fiat around for days like today when bitcoin is a bit lower. When bitcoin increases , everything becomes cheaper

[maurya78]

That's awesome
I frankly would not have the guts to commit more than 10-205 of my fiat earnings to btc

[activebiz]

you should always keep enough fiat in hand.

[steelhouse]

Actually, for me it is fairly different. I live overseas so I do not pay income tax up to my first $100k of income. I live in Germany where Capital gains on bitcoins is zero after a year. So I can buy and hold all year with these coins and spend my other coins. Simple enough to keep track of with one address for income. I can just change addresses in a year and start spending this income.

If you are a U.S. citizen, you must pay capital gains at the U.S. rate.

[Elwar]

Actually, for me it is fairly different. I live overseas so I do not pay income tax up to my first $100k of income. I live in Germany where Capital gains on bitcoins is zero after a year. So I can buy and hold all year with these coins and spend my other coins. Simple enough to keep track of with one address for income. I can just change addresses in a year and start spending this income.

If you are a U.S. citizen, you must pay capital gains at the U.S. rate.

Yes, as long as I follow the same process of FIFO or LIFO.  I think LIFO makes it easier for keeping close to the price I paid when I spend.

[dmugetsu]

Just save some FIAT

In bitcoin world,we never know what might happen

[mlferro]

That's awesome
I frankly would not have the guts to commit more than 10-205 of my fiat earnings to btc

I also do not, not today. But who knows in a near future.
Anyway, I just have to thank the shared experience.

[exocytosis]

Interesting! Make sure you have at least a nominal amount of regular FIAT money so you are not screwed in case the Bitcoin experiment goes belly-up at any point! It is an interesting ride, but we should never forget about the volatile and experimental nature of this whole endeavour!

Bitcoin is destined to completely replace every kind of fiat currency by the end of 2015. It can't go wrong.