why all charities should start using Bitcoin ?
Charity is what keeps the world going and proves that we as humans care about great causes.But Charities are usually the least transparent and often riddled with outright corruption. All hope is not lost and bitcoin- the world’s youngest currency has a remarkable solution to this.
Bitcoin is the world’s first decentralized cryptocurrency that has taken the world by storm
Every transaction that happens on blockchain ( the backbone of Bitcoin ) is visible for everyone to witness forever , which makes it one of the most transparent ledgers in the world. Blockchain is also the most immutable ledger that the world has ever seen making it rock solid proof of records.
Both these properties , transparency and immutability make it an ideal candidate for the world of charitable donations.
The combined capital of today’s charities is easily in 100s of billions of dollars yet they are the least transparent ( compared to say an OECD government )
Today’s charities are usually cross border i.e the money gets raised in a different country compared to its spending. Most of the time the spending is in a developing country where the transparency is fairly opaque.
I have personally witnessed this is India when growing, during my childhood being a Christian evangelist meant making ton of money from gullible donors abroad, although today the accountability is much higher.
Nevertheless charitable organisations are the least transparent and one of the most corrupt organisations in the developing countries.
any attempt in improving transparency is definitely a welcome change, this is exactly where Bitcoin can work it’s magic.
Imagine the money that gets pooled from a charity like Green peace is turned into Bitcoin by them and sent to a charity ‘ABC’ that takes care of chimps in Amazon rain forest. The money will be clearly visible as how much and when the money was sent etc. Further, say the money from ABC goes to a another corp XYZ that would be visible too, and finally the money lets say goes to a local bank and XYZ gets local money.
lets consider an example of wiki leaks bitcoin address
In this whole process we know exactly where the money went till the local bank as the addresses on the block chain can be marked with their names etc make it insanely easy to get an idea even for an average non technical donor.
This would drastically improve transparency , improving transparency means cutting the possibility of corruption.
Not just that,using Bitcoin also means cutting down heavily on the bank transfer fees and saving up on your donations.
Even though Bitcoin still faces some resistance from an average user today, charities would happily accept it improves their attrativeness in the eyes of every day donor.
Bitcoin and charities are simply a match made in heaven