Real Life Applications Of Bitcoin – Bitcoin For Donations
Bitcoin has a lot of practical applications in the real world. It has been the most successful alternative currency in the 21st century. A lot of retailers, businesses, and even some global companies are accepting Bitcoins for the products and services they provide. The Price of one Bitcoin raised from merely nothing to around $8000 as of today. This explains the demand and popularity this currency has gained in just over a decade. The reason for this incredible success is the way the system is built and the brilliant features it has. These features of Bitcoins separates it from all of the existing fiat currencies and makes it more superior. Some of them are the system being decentralized, anonymous transactions, speed of transactions, etc.
But apart from these, there are additional features Bitcoin possesses, which makes it the most suitable currency for donations. There is a lot of money that circulates around the world in the form of donations. But there is an extensive process donor have to through in order to donate money to charitable trusts and other entities. On top of that, a lot of tax information must be revealed by the donors in order to make the donations. Most of these problems are eliminated by donating money through Bitcoin.
Also, Bitcoin donations are an amazing way for charities to encourage more donors to participate. For donors, sending donations in Bitcoin is easy if the charity has an online wallet set up. And charities can receive funds from all around the world, from a modern type of donor, who prefers this payment method. Charities are beginning to realize the potential benefits of accepting Bitcoin donations. Being at the front of accepting Bitcoin donations opens charity organizations to a new community of donors who prefer to deal exclusively with Bitcoin. If you are a charity, and you want to accept Bitcoin donations, there are some things you should be aware of. You should not let issues such as tax violation and security of your Bitcoin donations affect your organization.
Receiving the complete benefit of Donation
Charities that accept donations through traditional means such as credit cards or PayPal are subject to high fees. With Bitcoin donations, these can be immensely reduced. While transaction fees still exist, they are a lot lesser compared to fiat transfers. However, it is important to be compliant. Tax professionals are increasing their focus day by day on Bitcoin taxation.
There are numerous benefits from accepting Bitcoin donations for your charity, especially when you want to widen your donor pool and make donating easy. Below are some of the important reasons why Bitcoin can be the most suitable currency for making donations.
Anonymity: You don’t need to give out your identity or any of your personal information to use Bitcoin. If used properly, you can make donations or receive donations with complete privacy. But in the case of conventional wire transfers or online money transfer services like PayPal & MoneyGram, your personal identity like name and address must be revealed.
Accessibility: Anyone on this planet can use Bitcoins. The only thing required to gain access and transact Bitcoins is to have an internet connection. Donors don’t even need to have a bank account to purchase Bitcoins by using various other ways of acquiring Bitcoins like peer-to-peer transactions.
Transparency: All the transactions are transparent because everything is recorded in the public ledger. This is essential for accountability. This transparency shouldn’t be mistaken for a lack of anonymity. By being transparent, we mean the Bitcoin address. Everyone will get to know that money has been sent to which Bitcoin address and received from which Bitcoin address but none of them know to whom that Bitcoin address belongs to.
Working Hours: The entire Bitcoin system works 24/7, unlike the traditional banks. The smaller bank transactions can be done 24/7 using electronic payment systems and online wallets like PayPal. But you can transact a large amount of money during the bank working hours. This makes Bitcoin an ideal type of currency for donations because charity organizations can receive your donated money anytime.
Regulations: One of the major reasons people hesitate to donate their money to charities is because they are accountable for that money. Donors are supposed to prove to the government that the donated money is legally earned by them, and it is a lot of hustle. But when you donate through Bitcoin, nobody can stop, seize, or question those transactions irrespective of the size of the donation.
Division of control: The multi-signature wallet feature of Bitcoin allows the division of control one has over huge amounts of funds. For example, if one of the most reputed charities is willing to give control of the huge amount of funds they have, they should vest their control in a single person or few people who know the secret credentials to gain access to those funds. This is not secured because everyone will have the password or pin to gain access. But in the case of Bitcoin, these charities can use multi-signature wallets where a few people will have a part of the password. All of them can gain access to those funds only when all of them are ready to share their part of the password. This potentially makes it impossible for a single person to gain access to the funds.
Plug & Play Setup: This is for the charities who accept donations. These charities can start accepting Bitcoins almost instantly. They will have to set up merchant accounts, and relative required hardware to accept fiat currencies. But with Bitcoins, they can download any credible wallet and start accepting donations.
These features make Bitcoin the most suitable currency for sending and receiving donations.