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Jonathan Chester
Jonathan Chester: Get Paid in Bitcoin
- Bitwage was founded in 2014 to solve the problem of how Bitcoin-holding companies could pay employees in cryptocurrency, creating a closed financial loop independent of traditional exchanges. - The company bootstrapped until 2016 due to hostile sentiment toward Bitcoin post-Mt. Gox and Silk Road; adoption didn't accelerate until 2020 when remote work, the Great Resignation, and crypto awareness converged. - Cross-border payroll became a major use case early on, particularly for freelancers in Latin America and Southeast Asia who benefited from Bitcoin's premium pricing in high-inflation or dollar-scarce regions. - Bitwage operates as a non-custodial payroll processor: employers fund in fiat, workers choose their payout mix (Bitcoin, stablecoins, local currency), and funds deposit directly to user-controlled wallets. - A 2022 proof-of-concept with Lightning Network revealed liquidity and routing challenges for high-value payments; passive deposits (not requiring invoice approval per paycheck) remain difficult on L2. - Bitcoin education—particularly on volatility, public-key cryptography, and price discovery—is essential before mainstream adoption can decouple Bitcoin from U.S. macro events and serve as a true hedge rather than speculative asset.
#500: Jonathan Chester on Being Paid in Bitcoin
- Bitwage enables employers to pay employees in Bitcoin or stablecoins, with users able to select their payment allocation at each payroll cycle. - The company has processed $100 million in payrolls across 50,000 registered users in over 100 countries, growing 50% since the COVID-era dip in 2020. - Two primary use cases exist: US employees pursuing dollar-cost averaging of Bitcoin as a hedge against inflation, and cross-border workers in Latin America, Asia, and India using Bitcoin to escape local currency devaluation and capital controls. - Stablecoins serve as a stepping stone for users to learn about wallets and private-key management before transitioning to Bitcoin holdings. - Bitcoin's network liquidity and ease of conversion make it superior to other cryptocurrencies for cross-border payroll settlement, despite slower transaction times on-chain. - Companies like Twitter and the Miami government have publicly announced Bitcoin payroll initiatives, signaling mainstream adoption momentum.