How Much Bitcoin Developers Earn in Different Countries
Whether or not you use cryptocurrencies, you most likely have heard of Bitcoin, the most popular cryptocurrency platform in the world. Bitcoins have become one of the fastest growing digital currencies, and as of writing, it holds 62.01% of the total market capitalization of all cryptocurrencies in existence. That’s over four times the market capitalization of Ethereum, the second most popular cryptocurrency, at 14.31%. If you’re a business, it would definitely be in your best interest to look into bitcoins and adopt it as a mode of payment, as it is also a popular payment option and its adoption rate among the online community is rapidly growing.
In a previous article from our blog, we looked into Blockchain developers and Blockchain in general, one of the third party providers of the Bitcoin services. In this article, we take a closer look at Bitcoin and see why there’s such an intense interest in the currency across different industries.
Bitcoin: An Overview
Bitcoin is the first ever decentralized digital currency, which refers to a currency that does not need a central administrative system to regulate it and verify transactions. It was created in 2009 by a person or group who went by the name Satoshi Nakamoto, whose real-world identity remains unknown. Nakamoto was the first to design and implement a decentralized model for digital currency. Decentralization implies that instead of having a regulatory body that mediates transactions, the task of validating and regulating transactions is distributed across a network of computers, all of which run the same software and follow the same set of protocols. This is achieved through a technology called the block chain, which serves as a public record of all bitcoin transactions.
Bitcoin’s popularity is rapidly growing. From just over a hundred daily transactions during its first year of operation, there are now currently around 300,000 daily Bitcoin transactions. What’s even more spectacular is that its market price: from less than a dollar per bitcoin in 2010, a single bitcoin now costs over 7,000 USD, and this amount continues to grow by the minute. This shows just how large the demand for bitcoins is now, and this demand just keeps on growing.
Despite pessimism about the volatility of cryptocurrencies, bitcoins have continued to soar above the rest. It is estimated that more than 17,670,750 bitcoins exist today. However, this number increases 10 minutes as an average of 144 blocks are mined daily and each block contains 12.5 Bitcoins. This brings the total average of 1,800 new bitcoins per day.
Lately, miners have stepped up the hash power. As a result, the turn around time of finding new blocks has been reduced from 10 minutes to 9.5 which means the average number of new Bitcoins could be more than 1,800.
Graph of the Number of Daily Bitcoin Transactions since Bitcoin’s Creation (Source: Blockchain)
With Bitcoin quickly penetrating the online community, it would be wise for businesses to support this currency and integrate it into their business operations. This is best done by hiring a good Bitcoin expert.
The Functions of a Bitcoin Developer
Bitcoin provides some instructions and guidelines for developers to utilize the currency’s various functionalities. Here are some of the functionalities Bitcoin developers can provide with some Bitcoin code:
Enabling of Transactions
A single bitcoin can be broken down into 100,000,000 units, called a satoshi. A bitcoin transaction involves the process of transferring satoshis from one user to another. Bitcoin transactions are made up of several small processes, the details of which may be found in their Developer Guide.
Processing of Payments
As many online stores accept bitcoins as a mode of payment, processing such payments is also a standard functionality that Bitcoin developers can integrate into applications. Payment processing includes the simple steps of requesting and making payments, as well as the more complex aspects such as requesting for refunds and scheduling regular billings.
Maintenance of Bitcoin Wallets
Bitcoin wallets work a lot like digital wallets: they allow you to store and track your digital currency — in this case, your bitcoins — and spend it when you please. In the case of Bitcoin wallets, developers can either create a Bitcoin wallet program or file which stores your bitcoin information such as private keys, generate public keys, and store other information related to your transactions.
Accessing the Block Chain
The block chain, which is a big part of the backbone that powers the entire Bitcoin platform, is a public ledger that stores all information about all the transactions since the creation of Bitcoin. Due to the public and distributed nature of the block chain, it becomes difficult, nearly impossible, to modify transaction details without having to disrupt and modify the rest of the network. Bitcoin developers can access information on the block chain to verify transactions.
If you want to learn more about Blockchain technology, read through the CryptoManiaks’ultimate Blockchain for Dummies guide.
Companies Using Blockchain Technology and Bitcoin Services.
Previously, blockchain technology was limited to the financial industry. However, more and more industries are looking to leverage on technology to gain comparative or competitive advantage. Here are some of the largest public companies that are already dabbling in block chain.
IBM is one of the largest tech companies in the world. Today, IBM is making headways in the cryptocurrency ecosystem by availing blockchain related services like the Hyperledger Blockchain creator tool. Using this tool, businesses can create smart contract systems and distributed ledgers.
Managing logistics in the food industry is an extremely complex task. However, Walmart and other companies have entered into an agreement with IBM to build a blockchain that can be used to track food globally through the entire supply chain.
With the IBM food trust blockchain, companies can capture data at every point, irrespective of the number of food products. As a result, food recalls can be easily implemented as the food vendors are able to track the respective product.
Microsoft is one of the few companies that embraced Bitcoins as a mode of payment even before cryptocurrencies became known. Additionally, the company has gone ahead to secure 40 patents that are blockchain related. Microsoft also allows any bitcoin development team to deploy their respective blockchain via Stratis in Microsoft Azure.
Being one of the biggest logistics management companies, FedEx is tasked with handling billions of dollars worth of consignments annually. To manage this logistical nightmare, FedEx is the pioneer in the shipping industry in embracing blockchain Technology.
As of today, the shipping giant uses blockchains to trail high-value cargo. In the future, the company plans to extend the functionality of this technology to almost every aspect of their shipments. On top of that, they are partnering with bitcoin professional/s to help establish industry standards in the field of supply chain logistics.
Demand for Bitcoin Software Development Skills
The global demand for Bitcoin software development skills and bitcoin programming cannot be overstated. This is because it is the underlying technology expected to springboard us into future technological innovations. Furthermore, global tech giants like Amazon, Facebook, IBM, and Microsoft are currently hunting for bitcoin experts and developers to build the foundation for this emerging sector.
According to a 2017 report by Transparency Market Research, the global cryptocurrency market was estimated to be worth $574.3 Million. And the good news is that the industry is projected to register a 31.3% CAGR to reach $ 6.7 billion by 2025. Bitcoin, in particular, has seen unprecedented growth. Another report by Statista has indicated that the estimated market capitalization of Bitcoin in the first quarter of 2019 will reach $73.37 billion.
In terms of recruitment, all the variables indicate that bitcoin development is ready for prime time. According to Glassdoor an online recruitment firm, there was a 300% increase in blockchain related jobs in 2018. Unsurprisingly, the USA floated the highest number of blockchain-related jobs with New York City leading with 24% and closely followed by San Francisco with 21%. Moving outside the US, London, Singapore, and Toronto also emerged as other cities with the highest number of blockchain job at 16%, 7%, and 7% respectively.Companies are also looking to hire bitcoin developers remotely. A 2018 Skills Index Report by Upwork saw blockchain skills emerge as the most demanded skill set with a growth rate of 3,500% between the year 2017 and 2018. The same report projects that this demand will continue to see a quarterly growth of at least 96% into 2020.
The Most Demanded Skills in a Bitcoin Development Team
Despite the volatility of crypto markets, blockchain-related jobs continue to see a steep climb. And as more businesses continue to explore the blockchain possibilities, blockchain developers are quickly becoming a premium. According to a 2018 Emerging Jobs Report by Linkedin, blockchain developers have been crowned as the fastest emerging career with all the job postings related to these skill on the platform growing 33-fold between 2018 and 2019. Moreover, any bitcoin developer capable of creating blockchain distributed ledger will appreciate the fact that the demand for these skill set grew by 200% in 2018.
Surprisingly, the same report shows that previously dominant sectors like finance are slowly losing traction. This is probably an indication that more and more industries are breaking into the cryptocurrency space breaking the dominance of traditional institutions.
Here are some factors that have contributed to this growing demand:
- Wider acceptance of bitcoins as a currency – As more people adopt bitcoins as a digital currency and payment option, more people will be considering adopting the currency as well. In addition, this will also put a pressure on businesses to adopt the currency and accept it as payment, since not doing so may cause them to miss out on potential customers or clients.
- Rapid increase in market price – The market price of bitcoins has soared at an incredibly quick pace, and it has become an attractive opportunity for investment that can yield much greater returns than traditional investment methods. As prices continue to soar, more and more people become drawn into the currency, whether they plan to use it as a currency or as a mere investment option.
- More presence in the news – As news about bitcoins reaching all-time highs and becoming highly profitable for many investors, the reputation of Bitcoin as a secure and viable digital currency becomes more widespread, and this can pique the interest of many who may have previously doubted Bitcoin’s viability. This can further expand Bitcoin’s user base and increase the demand for bitcoins.
With all these factors happening simultaneously, the demand for bitcoins is certain to continue rising, and so will the salary of Bitcoin developers. For instance, according to Indeed, the average salary of Bitcoin developers in the United States ranges from $91,433 to $110,611, which is well above typical developer salary ranges in the country. If you wish to adopt bitcoins into your business, it will be best to do so in the earliest possible time to avoid having to pay ridiculously high costs.
Cryptocurrency Developers Salary Comparison
Hiring a Bitcoin developer as early as possible can help reduce the cost, but to further save on expenses, it will be wise to also carefully choose which country to hire your developer from. For that purpose, let’s compare the salaries of developers in different countries.
For purposes of this article, we use PayScale, Glassdoor, and few other credible data sources. Note that the values we obtain are self-reported, listed in U.S. dollars and don’t factor in variable compensation, like bonuses, equity, or other additional perks that different companies offer. As such, the figures we obtain are by no means accurate salaries of Bitcoin developers. Nevertheless, they should give you a rough idea of what these professionals earn.
Software Engineer Average Gross Annual Salary Comparison in Various Countries (Source: PayScale)
The average annual salary of a blockchain developer in the hi-tech areas of Silicon Valley, New York, and Boston is between $158,000 and $170,000. This is impressive considering typical software developers in the same area earn around $140,000 annually.
According to Payscale, the average annual salary of a blockchain developer in Switzerland is $82,000. However, there are companies that have reported to pay as high as $180,000 which is even higher than what their US counterparts pay.
In the UK, small companies pay between $50,000 and $60,000 for an entry level blockchain developer position. As for the large companies, the salary is between $90,000 and $140,000.
The tech market in Ukraine has grown qualitatively and quantitatively over the past decade or so. But, despite the saturation of natural talent and a huge programming culture, the salaries are some of the lowest.
In key technology centers of Kyiv, Kharkiv, and Lviv, the salary of a blockchain developer is $24,557. Another key area that companies can explore in Ukraine is the freelance market. Here, freelance blockchain developers earn an hourly rate of between $10.45 and $58.72.
Of course, there are other supplementary areas in the space to explore like bitcoin service, bitcoin consultant/s, and bitcoin customer service. Basically, this area revolves around smart contract audits, blockchain architecture design, and technical crypto advice, although you need to have bitcoin certification.
Ukraine has some of the best bitcoin consultant rates where certified bitcoin professional salary is $12,000 per annum.
Bitcoin Software Development in Ukraine
Ukraine has one of the most robust tech industries in the world. The number of tech companies operating in the country is estimated to be 4,000 and employs over 185,000, making Ukraine the largest tech skills exporter in Europe.
A few years back the government embarked on a process of legalizing cryptocurrencies and by developing a comprehensive regulatory framework. This implementation is intended to allow both the traditional banking and crypto to coexist frictionlessly.
But that doesn’t mean that nothing is happening on the ground…
It is estimated that the Bitcoin market value in Ukraine is $2.5 billion of 2.5% of the country’s GDP. Additionally, Ukrainian companies have managed to raise over $100 million through Initial Coin Offerings (ICOs) and cryptocurrency mining-related businesses. Additionally, most Ukrainian IT companies have offshore and nearshore outsourcing know-how hence they are able to create blockchain-based solutions globally.
The combination of all these activities gives the country massive strategic advantages over her peers in Europe. With that said, the exact number of Bitcoin software developers is unknown. However, to allow for the adoption of blockchain technology on a wider scale, the Blockchain Association of Ukraine has embarked on training more certified bitcoin professionals to bridge the skills gap.
But perhaps the most important thing while working with Ukranian developers isn’t the low cost. The key advantage lies in their professional education, diligent work, and the ability to metamorphose into real troubleshooters when faced with challenges. It shouldn’t then come as a surprise that most of the Global 500 tech companies have set up base in Ukraine.
How to Hire Bitcoin Developer
The nascent nature of the cryptocurrency industry means some level of regulatory uncertainty. This compounded with extreme price volatility of bitcoin compels most people to approach the entire space with caution. However, the myopic short-term focus can lead to businesses missing out on the long-term benefits. The key lies in developing a strong development team to develop products that will weather the short-term period but also enhance your long-term interest.
Today, you can hire an all-inclusive bitcoin team to help you with all that. However, given the murky nature of the industry plus a shortage of bitcoin development skills, you need to carefully think before you hire bitcoin developers.
Outsourcing is one of the easiest ways to acquire the best bitcoin service and solution. The services are relatively cheaper compared to having an in-house team and that’s why many companies choose offshore development providers.
Here are Mobilunity, our team of bitcoin developers is capable of providing you with high-quality and secure Bitcoin apps for your business. Our experts will also give recommendations on the best technology to suit your project. We are located in Ukraine, in the heart of Europe, so not only are our developers some of Europe’s best IT talents but also offer some of the lowest rates you can find on the continent!