What is Bitcoin Charity?
Digital currencies have revolutionized the global economy for several years. Every day new applications are discovered for this economic phenomenon. One of the attractive and useful applications of cryptocurrencies is humanitarian activities and charitable aid. You may not have heard the term “bitcoin charity” or “digital currency charity” until today. Still, it is good to know that many humanitarian aids have been sent to charities through cryptocurrencies in the last two years.
What is Bitcoin Charity?
There is no such thing as a Bitcoin charity, but many philanthropic organizations use bitcoin and other digital currencies to raise funds. Of course, some platforms and websites are also specifically designed to receive cryptographic help.
In recent months, the sending of financial aid by cryptocurrencies has increased. Smaller charities can now use the potential of digital currencies to receive these donations.
Bitcoin and digital currencies are very different from Fiat and national currencies. For this reason, receiving and sending financial aid through crypto will also be different. As a result, the cortex that donates in this way has special characteristics and features. Digital currency charity users are very different from traditional donors.
Increasing the volume of national crypto aid sends important messages to the community. Some financial experts predict that crypto will be the best platform to send financial aid and encourage young people to participate in social events and activities in the coming years.
The desire to use digital currency for charity is growing every day.
Last year we saw the largest amount of sending and receiving charitable donations through cryptocurrency. According to Fidelity Charitable, in 2020, about 45% of investors in the digital currency market were involved in charitable activities. Only 33% of investors in all financial markets in 2020 have applied for social participation. Fidelity Charitable is one of the leading humanitarian aid organizations.
The ease of transmitting cryptocurrencies to any part of the world has increased humanitarian transactions in digital currencies. Before the advent of crypto, people used to send international aid using systems such as PayPal and Visa. Sending aid through these systems faced several challenges, including high fees, delays in transfers, sanctions, and government regulations. Crypto can be used to send cheap, fast, and easy humanitarian aid to different parts of the world without worrying about government and international laws.
UNICEF has developed a platform called CryptoFund to raise more charitable donations through cryptocurrencies. The Red Cross and Greenpeace have also begun accepting digital currencies. You can now easily be a Bitcoin charity selected for charitable activities.
Crypto encourages young people to do charity work.
One of the important points of cryptocurrency is the average age of market participants. More than 60% of cryptocurrency market users are under 40 years old. In the United States, the average age of crypto users is 38 years.
The average age of charitable donors is 64 years. According to research conducted by United Way, a large proportion of donors are women. However, the same institute stated that 80% of people between the ages of 25 and 35 who visited digital currency charities were men. As a result, crypto has persuaded many young people and men to engage in humanitarian activities.
The story of digital currency aid to Ukraine
Much of the crypto assistance is provided by young people who are familiar with the world of cryptography and technology. Emotional stories may affect this group, and their emotions may be aroused. Humanitarian campaigns on Twitter, for example, have raised about $ 100 million in digital currency aid to Ukraine. This incident caused a great deal of controversy in the early days of the war. Bitcoin deposit is now one of the most important ways to support Ukraine in this war.
Shiba currency aid to India by the creator of Ethereum
One of the most famous charitable transactions of the Korna era was made by vitalik buterin. The founder of Ethereum sent about $ 1 billion in Shiba Inu (SHIB) tokens to the account of an institution in India to help treat and correct coronary problems in the country. Shiba’s foreign exchange aid to India by Butrin is one of the most important humanitarian activities in the history of crypto. In addition to Butrin, many people sent donations to various countries through digital currencies after the outbreak of the Coronavirus.
Benefits of donating through Bitcoin and other cryptocurrencies
There are many benefits to donating through cryptocurrencies. The right to choose, confidential transactions, high speed, low fees, and tax exemptions are some of the benefits of cryptocurrencies.
Right to Choose
The Giving Bock Institute recently designed a platform for donors to choose their donation destination. The platform offers a wide range of funds related to a humanitarian issues. Users can assign their passwords to a specific activity.
Cryptographic aid is currently being collected in various areas such as education development, natural disaster compensation, combating malnutrition, environmental protection, combating war, and so on. In this way, users will have the right to choose, and small organizations can compete with large charities.
Cheap, fast, and tax-free transactions
One of the advantages of sending financial aid through digital currency is its cheapness and high transaction speed. Transferring money through old credit cards and payment services will come with many fees. The transfer process can also be time-consuming. According to the Bitcoin Charity Navigator, traditional financial transactions will include a 2.2 to 7.5 percent fee for charitable purposes.
Digital currencies have a cheaper and faster transfer process. Crypto fees are cheaper than traditional payment services. There are also many methods and channels for transmitting cryptocurrencies. There will always be a network for cheap and fast digital currency transfers.
Another benefit of cryptocurrencies is that they prevent tax increases. Converting digital currency to Fiat currency (national currency) will include taxes. Fiat currency transfers may also be taxed. If cryptocurrencies send and receive charitable donations, there will be no tax.
Confidential and anonymous transactions
To receive more donations, charities and nonprofits prefer to increase engagement with existing donors rather than attracting new ones. For this reason, donors prefer that their identities and contact information remain anonymous. The charities will no longer have information to contact the donors again.
Crypto helps users send donations to various organizations completely anonymously. No more contacts with the institution; Unless the individual voluntarily submits his information to the institution.
Increase the chances of small institutions
Traditional methods of donating to charities are still common. Old and popular charities prefer to use traditional methods. Many donors still prefer traditional methods of sending donations. However, start-ups and young users prefer to donate to philanthropic contributions through technology and platforms such as crypto.
Conclusion
By 2021, more than 1,300 nonprofits and charities will have received cryptographic assistance. Crypto has increased the volume of charitable activities among young people and men. Charities are finding new ways to tap into the potential of this emerging market. Now small organizations and even people active in the social sphere have the chance to raise funds to help and carry out humanitarian activities. Perhaps crypto can make the planet a better place for human life rather than transforming the global economy.
