The nonprofit sector has been on the rise for quite some time now. However, one of the most interesting trends is the increase in cryptocurrency donations.
Cryptocurrency is a digital currency which uses cryptography to secure transactions and control the creation of new units. Cryptocurrencies use decentralized control as opposed to centralized electronic money or central banking systems.
The nonprofit sector has seen an increase in cryptocurrency donations in recent years. The rise of cryptocurrency donations is due to its decentralized nature and anonymity, which can be attractive for donors who want their contributions to remain anonymous.
Why consider crypto giving as a nonprofit?
There are many reasons why cryptocurrencies are an attractive alternative for nonprofits.
It’s increasingly becoming easy to accept crypto donations
Cryptocurrencies are becoming more and more popular. It’s not just about the digital coins themselves – it’s about the underlying technology. Blockchain is a decentralized ledger that records transactions in a public and transparent way, without the need for any third party or central authority to verify those transactions.
With the rise of cryptocurrencies and blockchain technology, it is now easier than ever to accept donations in cryptocurrency. The easiest way to accept crypto donations is with a crypto wallet, which is a digital wallet for storing and sending cryptocurrency. Crypto donations can also be accepted easily by using an online payment processor like BitPay, which converts crypto donations into US dollars so they can be deposited into your bank account.
Low transaction fees
Crypto transactions have low transaction fees. This makes them ideal for crypto donations. Some charities are already accepting donations in the form of cryptocurrency, and as the number of people accepting cryptocurrencies as payment increases, so too will the number of charities that accept it for donations. When people donate to charity, they usually have to pay a transaction fee. When donating with cryptocurrency, however, there are usually low transaction fees. As a result, crypto donations have the potential to be more efficient for charities and donors because of the lack of transaction fees.
The rise of the value and importance of cryptocurrency
With the debut of Bitcoin, the most well-known cryptocurrency, cryptography was established in 2009. Unbeknownst to many, Bitcoin had no value when it first launched. The value of Bitcoin increased incrementally year after year, reaching $0.09 a year later. It didn’t receive widespread acclaim until 2017, when a sharp surge in price from $1,000 to around $20,000 in a single year.
Since then, the price of Bitcoin has risen, reaching a high of around $69,000 in November 2021. However, due to its erratic nature, which is caused by a variety of causes, the price of Bitcoin has kept fluctuating in the months that have followed. The cost of one bitcoin was around $38,000 as of publication. However, there is a lot of potential for the future of cryptocurrencies because an analyst panel believes that in 2025, the price of Bitcoin would exceed six figures.