Cryptocurrency and Charity

Recently, cryptocurrency has become not only a tool for quickly transferring funds to anywhere in the world or an investment tool, but also a way to help those in need. Blockchain technologies are becoming popular for charity. There are several reasons for this:

  • cryptocurrency payments recorded on the blockchain provide transparency of the charitable organization;
  • the possibility of international transactions;
  • reducing the costs of companies collecting donations due to the absence of third-parties and automation of processes;
  • no taxation.

Today, there are various charity cryptocurrency foundations that, for example, help society to confront the global COVID-19 pandemic and solve other problems.

For example, in early May, the creator of Ethereum, Vitalik Buterin, donated more than $1 billion to the COVID-Crypto Relief Fund, which helps India fight the pandemic. Donations were made in Shiba Inu and Ethereum. At the same time, such actions of Buterin negatively affected the rate of cryptocurrencies: Shiba Inu at a certain point fell in price by more than 30%.  This shows, unfortunately, one of the negative aspects of cryptocurrency donations — high volatility.

In addition, the creator of the ether also donated about $335 million in Ethereum and Dogelon Mars (ELON) to the Methuselah Foundation, which develops new medical technologies, and another 13 thousand ETH to Givewell, which sponsors many charities around the world.