Six months ago, UNICEF launched a cryptocurrency fund in conjunction and with Ethereum blockchain platform. The platform will allow it to receive, store, and distribute funds in cryptocurrency. UNICEF said that they want to investigate the possibilities offered by cryptocurrencies as a money gateway that will shape the the lives of future generations. The fund is currently operating, and accepts donations of bitcoin and ether. It’s not the only or the only global charitable organisation to recognize the importance of cryptocurrency.
United States Fidelity Charitable signed to accept crypto donations in the year 2015, and since then has raised more than $100 million from various coins including $BTC. Profit Edge – trading platform Make a Payment The procedure continues with making a deposit. Other organisations with a worldwide impact accepting cryptocurrency donations include the American Red Cross, Wiki Leaks, Save the Children, Royal National Lifeboat Institution as well as The Water Project. Recently, the Human Rights Foundation (HRF) has also begun accepting donations made in Bitcoin. These companies have realized that cryptocurrencies provide numerous benefits and advantages against fiat currencies. They include ease of use, low and minimal cross-border transaction costs, instant global reach, transparency, and new investment options as well as tax benefits.
Cryptocurrencies Offer Convenience and Tax Benefits to Donors and Charitable Organizations.
According to a report released by Statista that there were more than 44 million users worldwide who had bitcoin wallets at the end of 2019. They are addresses which are used to store and transfer crypto currencies. Taxes are always a controversial topic for many, but it’s not everyone. There are a lot of people believing that governments around the world have more of their money than they need to, even if they are allowed to take the money of citizens in any way.
This is the reason why giving to fiat currencies can cause those who want to help others take a step back, as they aren’t keen on having their goodwill be taxed. There is a benefit of cryptocurrencies, since the donors of crypto can write off their entire donation amount since there is no capital gains tax. If, for instance, an individual who is philanthropic made an enormous amount of cryptocurrency and decided to give to charity in cash the tax would be about 20-30% of that amount. But, if charity institutions accept cryptocurrency donations, the entire amount can be instantly transferred at a minimal transaction fee. The donors feel secure knowing that they won’t lose their money somewhere, in fees for banking and taxation across borders or in transactions. Charitable organisations are aware of this .
Reaching a Global Pool of Philanthropic Hearts
Giving isn’t about how much money you have or where you’re located in life, but fiat currencies can take this away from people. It is not the case that everyone who wishes to donate will be able to access the institutions that are associated to the charity they want to give to. If the procedure of getting the paperwork correct becomes an obstacle and people are reluctant to give, they may be put off despite having great intentions.
The advent of cryptocurrency has made it possible to skip all the hurdles. They have provided global financial access to millions people who were in no way of having their money deposited in traditional banks over the next five or 10 years. In the present, cryptocurrency users only require internet access and a crypto wallet or an exchange wallet , to make a donation. Additionally, it opens up new avenues for these organizations, as cryptocurrency can make even the smallest amount of donations.
Distributing Funds Conveniently Across International Borders
When companies have projects operating across the globe there are always challenges that arise from borders regulations, financial directives and other elements that can slow the pace of development. Blockchain transactions can take minutes to complete transactions regardless of location. this is because the majority of the top marketplaces operate on a central basis.
There is an increasing trend of decentralized exchanges which transfer digital currency directly from wallet to wallets, and are quicker, more secure and secure. International crypto donation transfer reduces the amount of time required to transfer money from one institution to another and also the costs associated with it. A further benefit is that it safeguards the money from corrupt officials and governments this is something which has caused a lot of frustration for charities, particularly in areas where the greatest need is.
Decentralization in Cryptocurrency Promotes Security, Accountability, and Transparency
The way a blockchain operates is by using distributed ledger technology which keeps irrevocable records for the duration of time. When data about a transaction has been recorded, it is reflected on the other ledgers in the network, for everyone to view, and it cannot be altered in any way. They are managed through a network of computers or nodes located all over the globe. This means that companies are not required to worry about central servers that could be compromised or altered by anyone who has access. Another issue that centralized servers face is the building and maintenance costs. These are being reduced with blockchain technology.
This means that people will be held accountable for the way they spend the money, and it could also assist organisations during audits and fundraising campaigns to draw more donors. The donors on the network will observe other donors who have contributed and can track the money to check how and where the organization uses their contribution. Transparency fosters integrity and allows to remove the seeds of corruption while making sure that the funds are utilized to serve the purpose they were designed to serve. It also broadens the reach of funds to development projects and helps more people which is the primary objective of every charitable organization.
Investing Opportunities for Crypto Funds
While some may be hesitant from the cryptocurrency market because of the high volatility but it is one of the highest yields, both for short-term and long-term investments. To better understand the impact of volatility, take a look at the fluctuation in the price of bitcoin throughout the years, and as the most popular cryptocurrency by market capitalization in terms of trade volume. For instance, the mass liquidation carried out by an Chinese fraudster using Plus Token wallets has been causing havoc to bitcoin’s price for over three months now , in the form of a pump and dump scam that has caused investors to lose millions of dollars.
There’s plenty of speculation within the market for cryptocurrency, and because most coins, including Bitcoin aren’t backed by anything, even a small anxiety can result in massive losses. The same is true for cryptocurrencies. there are always massive profits to be made trading in cryptocurrencies. Anyone who is a traditional investor, particularly when the stakes are very high take a look at the bitcoin prices as of 2009 and would advise against trading in it. Charitable organizations shouldn’t be afraid to do this. Instead, they should talk with crypto analysts who are certified and traders from institutions, since they’re not likely to be wrong.
Final Thoughts
There is no doubt that the benefits people gain from making use of cryptocurrency for transactions seem unbelievable to those who have been accustomed with traditional financial institutions. The crypto market is thought to be a young and unstable market, in contrast to established markets. However, it is the fastest-growing market , and draws the top generation who are responsible for making the right choices for the future.
