The New Opportunities Crypto Presents for Charitable Giving

Crypto is changing the landscape of philanthropy

What are cryptocurrencies, exactly? Hundreds of currencies with names like Ripple, Litecoin, and Ethereum have sprung up in recent years, gaining a cult-like following among the tech-savvy, and their prices have gone through tremendous swings.

Cryptocurrencies, such as Bitcoin, are essentially a new type of digital-only currency. They may be kept online by anybody and transmitted or received quickly and inexpensively to any point on the planet. The Blockchain, which underpins all cryptocurrencies, is a ground-breaking technology that, for the first time, provides an online ‘ledger’ that allows all transactions to be traced and viewed by the public.

The main difference between these currencies and the Fiat currencies we are most familiar with (i.e. Pounds, Euros, and Dollars) is that transactions with these digital coins do not require the involvement of a central exchange like as a bank or government.

To be tapped into newly discovered wealth

The entire market value of Cryptocurrencies has now surpassed $100 billion as a result of significant increases in their value over the previous several years. This freshly produced riches offers up new possibilities for charity all throughout the world. (See https://theministerofcapitalism.com/blog/crypto-is-changing-the-landscape-of-philanthropy/ )

In the previous several years, we’ve seen a significant increase in bitcoin charity. This tendency was mirrored in a report by Fidelity Charitable in America. In 2017, the organization received $69 million in bitcoin donations, up from $7 million in both 2015 and 2016.

In late 2017, an anonymous investor utilised their newfound money to create the Pineapple Fund, a “crypto-foundation” devoted to donate a substantial quantity of Bitcoins to charitable organizations, totaling $55 million.

Additional philanthropic possibilities

The enormous riches produced by digital currencies isn’t the only way that technology is disrupting the charitable sector. New charity organizations are forming that make creative use of digital tokens and the underlying blockchain technology. This, in turn, might assist to reshape the industry over time.

UNICEF established The Hopepage in 2018, encouraging users to donate a fraction of their computer’s processing power to help’mine’ new Cryptocurrency currencies. The money donated will go to UNICEF Australia, which works to safeguard children, protect their rights, and help them reach their full potential.

Some of these new platforms are also utilizing the underlying blockchain technology to solve the industry’s lack of transparency. Blockchain provides a secure, publicly accessible ledger of transactions that anybody may view over the internet. In 2017, BitGive announced the introduction of GiveTrack, a blockchain-based contribution platform that would allow donors to track the progress of their payments in real time. As technology advances, we may see a re-imagination of how open and transparent future charities will be. As a result, the industry may be able to access substantially more investment.

A variety of social-purpose digital currencies have been produced to assist specific non-profit projects, in addition to bitcoin contributions and tracking. Pinkcoin, for example, is a philanthropy coin that allows investors to give to charity while still earning a profit, and it is traded on major cryptocurrency exchanges.

The Long Run

Crypto-philanthropy will continue to rise as digital currency donations become more prevalent, and provided the crypto market continues to thrive. Donation systems based on blockchain technology can let contributors have more control over their giving and a better understanding of its effects. Furthermore, greater openness in contributing, as a result of Blockchain-managed tracking, might boost public trust in charity.

Crypto-philanthropy has the potential to earn millions (or possibly billions) of dollars more for the social sector.

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Jeff Kazmeir

I am a financial trader. I spend my time helping other traders learn how to trade options at The Empirical Collective dot com