One of the biggest misconceptions surrounding cryptocurrency is the idea that even if you’ve invested in a large amount of crypto or hold many different types of crypto, you can’t spend it anywhere. While that might have been true in 2009 when Bitcoin was first created, the crypto industry has changed since and there are many ways that crypto has real-world value.
There’s been mainstream cryptocurrency adoption among businesses, nonprofit organizations, and even countries like El Salvador. Crypto is here to stay, and crypto donations to nonprofits are making an impact as thousands of organizations expand their outreach and connect with donors around the globe. These are some of the main reasons why crypto donations have real-world value.
The Built-In Scarcity of Bitcoin
There are thousands of cryptocurrencies in existence and it’s possible to donate dozens of different kinds to nonprofits, but Bitcoin remains one of the most popular coins. A key value to Bitcoin is its built-in scarcity. When Satoshi Nakomoto created Bitcoin, he established that there will only ever be 21,000,000 bitcoin ever created.
Much of the value to Bitcoin lies in its scarcity. As time goes on and fewer new coins are created, the value of a single Bitcoin is expected to increase. There are few other investments that nonprofits can make that increase value over time the way that Bitcoin and other cryptocurrency donations do.
Recently, Bitcoin miners hit the 19 million milestone, meaning that there are only 2 million bitcoin left to be mined over the next 100 years.
Crypto’s Global Utility
Another factor that drives real-world value is crypto’s global utility. As a digital asset, Bitcoin and other cryptocurrencies are global and borderless. Everyone has access to crypto, which particularly supports the unbanked, and transactions are processed much faster without a third party such as a bank involved.
Global utility is one of the main reasons why it benefits nonprofit organizations in particular to accept donations in cryptocurrency. By accepting crypto donations, nonprofits instantly gain access to a wide community of donors from all around the world and are introduced to a new donor demographic that’s younger and interested in supporting their favorite causes. Thanks to quick transaction speeds, crypto donations can be processed quickly and nonprofits are able to further their impact on a much shorter time scale.
Real-World Uses for Social Good
One of the main ways that cryptocurrency has real-world value is how it can help nonprofits achieve their missions. Once nonprofits begin to accept crypto donations, this opens up the possibility for crypto users to invest in good causes and for organizations to diversify their revenue streams.
Crypto donations have already made an impact on hundreds of organizations. Here are a few examples from real nonprofits:
- Accepting crypto donations allowed She’s the First to add an entirely new revenue stream during the COVID-19 pandemic so the organization could continue to provide its services around the world.
- Crypto donations help Mental Health America provide mental health care and services, including essential mental health screenings.
- The University of Arizona Foundation saw a surge in donor interest after it began accepting crypto donations.
- Crypto donation efforts have helped KABOOM! stay on the cutting edge of fundraising strategies.
- Crypto Philanthropy has helped OutRight Action International on its global quest for human rights.
The Future of Finance
A recent survey shows that over half of Millennials have invested in some type of digital currency, and 49% of them consider crypto as “the future of finance.” Nonprofits that don’t accept cryptocurrency donations are missing out on a great opportunity to incorporate an up-and-coming method of fundraising as well as gain access to a community of younger donors.
Cryptocurrency does have real-world value and there are many use cases for crypto donations.
To learn more about how your organization can gain a first-mover advantage when it comes to cryptocurrency giving, sign up for The Giving Block’s next webinar for nonprofits and get all the information you need on crypto fundraising tools and techniques.
