Bitcoin has a lot of potential for growth in the world of online freelancers, and the largest place to pay freelancers for odd jobs with Bitcoin right now is Fiverr. Fiverr is one of the largest hubs for freelancers on the entire Internet, and it’s now the perfect spot to go when you want to pay someone to complete a small task for you for bitcoins. It’s pretty crazy what people will do for five dollars on this website, but the site also allows freelancers to charge larger amounts of money for more serious work. Fiverr decided to partner with Coinbase to accept Bitcoin payments, and it seems that most of the large merchants accepting Bitcoin seem to be gravitating towards the San Francisco based company.
No Bitcoin Payments for Sellers
Although being able to pay freelancers in Bitcoin is rather exciting, it should be noted that the freelancers on the site will not be able to get paid in Bitcoin at this time. Fiverr has Coinbase instantly convert their Bitcoin payments into dollars, which is then transferred to the account of the freelancer. This is probably due to the accounting troubles that would pop up if Fiverr also allowed freelancers to be paid in bitcoins. After all, the freelancing website still needs to get their own cut of the action, and that would be more difficult for them to do if they were taking a cut of bitcoins rather than dollars. You’ll still have to find work elsewhere if you’re a freelancer who is looking to get paid in Bitcoin, but this should still be an exciting option for people who wish to be the employer in the business relationship.
Why Freelancers Should Love Bitcoin
The fact that Fiverr is accepting Bitcoin at all points out a rather obvious segment of the population that should be extremely excited about Bitcoin payments. The online freelancer market is plagued by a large number of different middlemen who take their own cut of payments made over the Internet, and Bitcoin has the potential to make these payments much easier and cheaper for all parties involved with a project. Most freelancers currently get paid with PayPal or some other kind of equivalent online payment service, which works quite well for most people. The only issues are that the fees can become rather high when you’re dealing with two individuals in different countries, and the possibilities of chargebacks are also always in the back of the minds of freelancers. With Bitcoin, freelancers would be able to get paid instantly for their work, and they would only have to worry about a small Bitcoin transaction fee that usually amounts to nothing more than a few pennies.
Decentralizing the Freelancing Market with Bitcoin
In addition to offering better payment options for freelancers, Bitcoin could also provide the base technology for a decentralized freelancer marketplace that brings people together with no added costs. There is already a marketplace known as OpenBazaar in the works, and this new software is supposed to be a decentralized replacement for online goods marketplaces, such as eBay. This same blockchain technology could be used for people who wish to sell their skills or services over the Internet, and payments could be made in a provably fair manner thanks to escrow via multi-sig transactions and decentralized arbitration services. Instead of going through a centralized freelancer marketplace where fees are taken out and you’re still not 100% sure that you’ll get paid at the end of the day, freelancers will soon be able to meet on an open platform where the fees are next to nothing and the chances of becoming a victim of fraud are drastically lowered.