There is a new trend in the cryptocurrency industry, and it’s all about giving away digital currency to charity or specific causes.
Because of that, social entrepreneur Paul Lamb said virtual money is changing how it is used for fund-raising activities and philanthropic endeavors.
Exciting New Trend
“Much of the growing interest in Bitcoin and other digital currencies has focused on getting and not giving. But flying under the radar is an exciting new trend toward leveraging cryptocurrencies for philanthropy,” Lamb said in a piece published in Cointelegraph.
Lamb, who has launched nonprofit organizations and social businesses and advised foundations, nonprofits, and firms on leveraging technology for social good, noted how cryptocurrency is changing the way how people donate money to causes or projects.
Lamb pointed out that “a number of charities and foundations have been trialing Bitcoin donations” the past few years.
The organizations include Save the Children, United Way, the Electronic Frontier Foundation, and the Red Cross.
“Cryptocurrency donations to charity are clearly on the rise. Fidelity Charitable, which houses the nation’s largest donor-advised fund, received $69 million in cryptocurrency donations in 2017, up from $7 million received in 2015 and 2016 combined,” Lamb said.
He also said that there are now several platforms and projects being held in the “crypto-philanthropy” space that include crowdfunding platforms like BitHope, which lets donors make Bitcoin donations to selected charities for their fundraising campaigns.
Lamb said further that there are new tools like GiveTrack and Alice “that can track the flow of donations from a giver to a recipient as well as verify what charities have received and achieved, all on a Blockchain.”
Then, there is also social purpose digital coins that have been created to support nonprofit programs and endeavors.
He mentioned Clean Water Coin, which was designed to raise money for the nonprofit Charity: Water and bring clean water to families worldwide.
Lamb also mentioned Pinkcoin, “which allows investors to both donate to charity and to earn a return on their investment.”
According to Lamb, Pinkcoin is listed on cryptocurrency exchanges and has performed well compared to other commercially-traded digital monies.
Last but not the least is “crypto-foundation.”
One such foundation is the Pineapple Fund formed by a bitcoin philanthropist who is known by only one name – Pine. The fund has vowed to give away 5,057 Bitcoins to charity.
So far, the fund has donated $56 million to 56 charitable groups and causes.
The fund’s motto is: “Because once you have enough money, money doesn’t matter.”
Lamb said the “world may even see an autonomous and decentralized foundation or fund, under which grant and financial distributions are made purely through the votes of holders of foundation created tokens.”
“Blockchain-based systems could also help to improve the reputation of charities,” Lamb said, citing studies that revealed that “one in three Americans are said to lack faith in nonprofits” because they believe that nonprofits “spend too much of their budgets on overhead and too little directly on programs.”
Cryptocurrency is changing how people donate, and it’s becoming a trend now.
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