Cryptocurrency is popular nowadays. There’s rarely a day without news about it. There are many blogs about it. You can find many cryptocurrency related posts on social media. Even YouTube has tons of videos about this virtual currency. With this in mind, is it time for charities to start accepting cryptocurrency?
The answer is certainly yes. There’s no reason not to accept donations in cryptocurrency. Aside from the fact that it’s ridiculous to refuse a donation, cryptocurrency has value. It’s not just some exclusive currency used by a certain group of people. It has users in different parts of the world who recognise its value.
How Can Cryptocurrency Be Considered Money?
Cryptocurrency can be considered as money for three main reasons: it can be converted to cash, it can be used to buy things, and it can be sold to those who want to get bitcoins.
Cryptocurrency may not be comparable to fiat currency when it comes to acceptability as a medium of exchange but it is very much possible to convert cryptocurrency to fiat currency or cash. There are cryptocurrency exchanges in different parts of the world. Through these cryptocurrency exchanges, you can exchange your cryptocurrency with fiat currency such as the British pound or euro. You may also exchange your cryptocurrency with other cryptocurrencies.
On the other hand, you can use cryptocurrency to buy products. Many establishments both online and offline already accept cryptocurrencies, bitcoin in particular. You don’t have to worry about what to do with the bitcoin you receive. It can be directly used to purchase different kinds of things in stores in different parts of the world.
Lastly, you can convert your bitcoins into cash by selling it to those who are looking for bitcoins. It’s similar to selling PayPal funds to those who have cash but don’t have the means to fund their PayPal accounts. There are many online who post advertisements for the sale of bitcoins as well as those who are looking to buy bitcoins.
The Value of Cryptocurrency
For many, the value of cryptocurrency is equated to its equivalent in fiat money. For those who don’t see cryptocurrency as an acceptable currency by itself, its worth is based on how it compares to standard currencies, the so-called cryptocurrency price. Bitcoin, for example, at the time this article was written, had a price of GBP 4766.97 based on Coindesk’s numbers. This means that if you go to Coindesk to have your bitcoin exchanged with British pounds, you will get GBP 4766.97for every bitcoin less the associated transaction costs.
It’s important to emphasise, however, that the price of cryptocurrency is volatile. The price or exchange rate moves quickly, more than how it works with standard foreign currency exchange. Additionally, different bitcoin exchanges impose varying exchange rates. Refer to crypto reviews for a guide on which cryptocurrencies and cryptocurrency exchanges are considered the best.
There’s just no reason not to accept cryptocurrency unless there are legal restrictions in owning and using this digital currency. Bitcoin, in particular, is already gaining ground. Its GBP exchange rate or bitcoin price may have already dropped from the historic highs nearing GBP 14,000 but it still enjoys good value and definitely worth accepting as a donation.