Digital Nomads' Economy: How Cryptocurrency Supports a Mobile Lifestyle
The gig economy, characterised by flexible, freelance, or temporary jobs, continues to expand rapidly.
According to Upwork’s Freelance Forward report, 39% of the American workforce engaged in some form of freelance work in 2022, marking a 3% increase from the previous year.
This trend is poised to continue, with 66% of hiring managers planning to increase their use of freelance talent, as per Upwork’s Future Workforce Report .
Freelancers made a large economic contribution in 2022, adding $1.35 trillion to the U.S. economy in annual earnings, for a $50 billion increase from 2021.
On a global scale, the World Bank reports that the gig economy now makes up to 12% of the entire labour market, which is significantly higher than earlier projections.
Moreover, Staffing Industry Analysts estimate that the gig economy generated a massive $5.4 trillion in global revenue in 2021.
This growth is fueled by the growing demand for flexible work arrangements and the widespread adoption of digital platforms that efficiently connect freelancers with businesses.
Faster, Cheaper Cross-Border Payments
By now we likely have all seen how cryptocurrencies have changed the way that freelancers receive payments, particularly in cross-border transactions.
By eliminating the need for traditional banking intermediaries, crypto payments offer near-instant transaction speeds and significantly lower fees.
This is crucial for freelancers who work with international clients, as it ensures they receive their earnings without delays or excessive costs.
Micropayments and Flexible Income Streams
The continued use of cryptocurrencies leads to an increase in micropayments, which are ideal for freelancers paid for small tasks or upon reaching project milestones.
This method ensures a steady flow of income, which aligns with the unpredictable nature of gig work, providing financial stability and flexibility to freelancers across various sectors.
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Smart Contracts for Secure Transactions
One of the main problems that many freelancers face is the issue of payment delays or disputes.
Smart contracts, enabled by blockchain technology, offer an ideal solution to this by automating payments upon the completion of agreed-upon terms.
This helps significantly reduce the instances of non-payment and misunderstandings between freelancers and clients, securing the financial interests of all parties involved.
Accessibility and Financial Inclusion
In developing economies, access to traditional banking services still tends to be limited even in the modern world.
As of 2021, it was estimated that around 1.4 billion adults remained unbanked globally , yet two-thirds of them own a mobile phone which could easily allow them access to financial services via cryptocurrencies.
Cryptocurrencies provide an essential gateway for these individuals to engage in the gig economy, offering opportunities for economic participation and development.
Gig Workforce and Business Benefits
Currently, 60 million Americans are engaged in freelance or gig work, representing an incredibly substantial part of the country’s workforce.
Businesses benefit from hiring freelancers, as they can reduce costs related to workspace, healthcare, paid leave, and other benefits typically provided to full-time employees.
CoinsPaid enhances this model even further by allowing merchants to pay their contractors in cryptocurrencies.
This is especially beneficial if the merchant receives payments in crypto from clients, enabling seamless, almost instant transactions to freelancers without the need for currency exchange.
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