Ever since Satoshi Nakomoto developed Bitcoin, cryptocurrency has received widespread interest and several waves of mass adoption. So what is crypto good for? Cryptocurrencies can be used for much more than just purchasing goods and services.
Crypto, and the blockchain technology behind it, are powerful forces for social good. From increasing opportunities for financial freedom to providing emergency funds during times of crisis, crypto has multiple use cases that support critical causes and individual empowerment.
Read on to discover six use cases of crypto that are changing the world.
1. Crypto Philanthropy as a Force for Good
It’s possible for nonprofit organizations to accept crypto donations as a revenue source to help fuel their critical missions. Crypto Philanthropy is a form of charitable giving that supports causes with cryptocurrencies, whether it’s Bitcoin, Ethereum, or dozens of other kinds.
Thousands of nonprofits around the world are using crypto philanthropy to raise funds for humanitarian aid, female empowerment, mental health services, and more. By accepting crypto, these organizations are connecting with the next generation of donors and expanding their global reach.
In particular, cryptocurrency is a technology that can help communities in need of urgent aid. Whether nonprofits are looking for innovative fundraising strategies during a global pandemic or communities have been hit hard by an extreme weather event, crypto is an accessible, direct way for people to receive help in times of crisis.
2. Banking the Unbanked
A compelling use case for crypto is how it provides financial inclusion for billions of unbanked individuals. Since Bitcoin and other cryptocurrencies are decentralized, people who own crypto have a means to pursue prosperity, own property, and even buy essentials such as food and water in places that are suffering from hyperinflation or political instability.
Crypto also helps entire communities that are underserved or excluded from traditional monetary systems. From smallholder farmers to minority groups, crypto provides these communities access to funding, new financial opportunities, market tools, and financial services.
3. Supporting Women’s Empowerment
Women make up 57% of the people who are excluded from traditional monetary systems and also are a significant minority in the tech and science fields. Through crypto and blockchain technology, women are taking more control of their finances and careers; crypto helps provide women with avenues for new career paths, financial independence, and better quality of life.
From nonprofits that fundraise crypto in support of young girls in STEM careers to NFT projects that celebrate diversity and inclusion in crypto’s typically male-dominated space, work is being done to ensure that one of crypto’s popular catchphrases, WAGMI, truly means that we all are going to make it.
4. Creating New Avenues for Storytelling and Artistic Expression
The rise of non-fungible tokens (NFTs) has brought crypto art and digital collectibles to the forefront of the crypto space. Artists and musicians are using crypto technology for artistic expression, cultural preservation, and pushing the boundaries of creativity even further.
Not only do NFTs tell powerful stories and help level the playing field for creators, they also can be used to support nonprofit organizations. NFT fundraising has become a new, viable source of revenue for nonprofits as thousands of nonprofits have connected with NFT artists, projects and collectors to raise cryptocurrency donations for critical missions all around the world.
5. Trailblazing Humanitarian Initiatives
On top of crypto donations, nonprofits and NGOs have used crypto and blockchain technology in their essential work. Due to the efficiency and transparency of crypto, organizations have used digital currencies to provide aid, make investments, and keep track of how money is being spent. In the last few years, UNICEF launched a CryptoFund that has made a dozen investments into startups working on blockchain solutions, data science, and more throughout the world.
One of the most exemplary use cases for crypto and blockchain technology was during the Ukrainian war in 2022. Through initiatives such as the Ukraine Emergency Response Fund, millions of dollars in crypto donations were raised to help the people, animals, and communities of Ukraine. In December, the UN Refugee Agency turned to blockchain technology to further aid displaced persons and other war-affected people in Ukraine.
Thanks to the support of the amazing crypto community, we are able to continue helping volunteers and shelters in destroyed and occupied areas of war-torn Ukraine. We’ve made sure thousands of animals have been rescued, fed, and cared for. This would not have been possible without the generosity of crypto donors.
6. Upholding Privacy
Another use case for crypto is its value of privacy. There are many situations where financial transactions and other online activities require privacy, and in many countries, privacy is a luxury. It’s more difficult than ever to ensure anonymity and circumvent surveillance in necessary instances—such as when refugees need to store their identity or other personal information safely, or when human rights advocates want to avoid retribution.
Crypto solutions such as the Lightning Network and certain wallets group or mix transactions together to help mask individual identities. Decentralized IDs that use blockchain technology protect the anonymity of users and can help refugees safekeep aspects of their identity—a lifeline as refugees are on the move. Crypto is leading the way on technological solutions for situations when privacy is critical to safety.
Pursuing Prosperity and Social Good with Crypto
Owning Bitcoin and other kinds of cryptocurrency provides an opportunity for many people to pursue individual prosperity, as well as do their part in supporting social good. From nonprofit organizations that launch NFT fundraisers to unbanked people who use crypto as a viable means of personal finance, crypto has multiple use cases and is making a difference for millions of people around the world.
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