Introduction
As the US gets ready to head to the polls on November to choose between Biden and Trump as president, crypto is experiencing another usecase - being used as medium to send donations to support a project. Two top crypto leaders have donated money to Trump in form of crypto. The donated amounts are significant and illustrates another huge usecase for crypto in the world of finance.
This article looks at some of the reasons that makes crypto a top choice for supporting a course or project especially one that has international scope. Before we get into that, lets look at the crypto donors for Trump campaign ahead of the US elections in November.
Kraken and Germini co-founders donate $1m each to Trump
Founders of crypto exchange platforms Germini and Kraken have donated huge sums of money to support the Trump campaign to emerge president after the elections in November. First to do so was Tyler Winklevoss, Co-founder of crypto exchange platform Germini. Tyler made the donation because he feels the Biden administration has shown anti-crypto sentiments especially with the rise in the number of crypto executives that have been indicted by the SEC. Below are some of the things he said to announce the $1m donation:
I just donated $1 million in bitcoin (15.47 BTC) to
Donald Trump and will be voting for him in November. Here’s why:
Over the past few years, the Biden Administration has openly declared war against crypto. It has weaponized multiple government agencies to bully, harass, and sue the good actors in our industry in an effort to destroy it. This Administration's actions have been nothing short of an unprecedented abuse of power wielded entirely for twisted political gain at the complete expense of innovation, the American taxpayer, and the American economy. There is nothing the Biden Administration can do or say at this point to pretend otherwise. source
In the same fashion, another top crypto leader in the industry followed the same path. Jesse Powell, the Co-founder of crypto exchange Kraken also donated $1m to Trump.
I just personally donated $1m (mostly #ETH) to Donald Trump
.
For too long, the crypto industry has been under attack by Elizabeth Warren, Gary Gensler and others. Despite overwhelming bipartisan Congressional efforts to put clear rules in place, the Biden White House has stood by and allowed a campaign of unchecked regulation by enforcement. This approach is diminishing US competitiveness as other major economies around the world advance clear rules to regulate digital assets. source
These two examples are huge from industry leaders and demonstrate the potential that crypto could have in funding projects of global scope. Not too long ago, The British Red Cross started accepting crypto donations. So why is crypto best suited for everyone when it comes to supporting various activities or projects, lets see a few reasons.
Why donate in crypto
Crypto donations are becoming more mainstream and it is not difficult to see the reasons why this trend is gaining popularity. Here are just three reasons:
- Global reach: One cool reason why projects could consider raising funds through crypto is because of it is a borderless form of payment. Each country today has their own currency and there is no universal currency except crypto. If a project wishes to appeal to people no matter where they live, then it could consider crypto payments.
Cryptocurrencies are not controlled by any issuing body like the central bank. Thus, its use is not limited by any physical borders, government laws or agencies. Thus, crypto payments can be made and received no matter where someone lives. Thus, its the best way to collect donations especially for projects that have a global scope. Fans can make financial donations without worrying about bank delays, exchange rates of government money laws of the land. Since crypto payments do not pass through traditional banks, anyone from anywhere can donate crypto so advance a course.
- Fast and instant: Another interesting aspect of crypto payments is speed. Because the transactions are peer-to-peer, time is saved as the banking system is cut off. If a user sends crypto to another user, it is super fast. It takes less than few seconds to complete a crypto transaction. So if one is thinking about sending money abroad real quick, crypto is the answer.
For those calling for donations to support a huge project, crypto would be the best choice. The donations are received as early as they are sent. There are no delays as a result of transaction processing. Even when delays happy, it does not take many hours or days as we are all aware of such in our banking systems.
Imagine a donation where the funds are needed very urgently. For example, donations sent to victims of natural disasters like earthquakes. For people experiencing such emergencies, help is needed as urgently as it could be rendered. In this case, accepting crypto donations would be the best option as such financial help could be rendered and coordinated more quickly than any other option.
- Small transaction fees: You are already familiar with bank transaction charges, right? Every bank services attracts some cost and its usually on the high side. Even a debit card not being used attract maintenance fees. When transactions are international in nature, the bank charges even higher fees. Imagine the cost of sending $100 from your country to another country. When charges are removed, the final amount received would be much smaller than the amount sent. This is where crypto payments beat the banks.
Crypto transactions attract very negligible processing fees. Most times, its really nothing. Some networks like Hive and Tron attract processing fees that worth almost nothing no matter the amount involved in the transaction. So for a project that is really intent on receiving all values sent, crypto should be the best option. Its fast and mostly feeless. This is good for donations. In essence, the amount sent would be almost the same amount sent by donors.
Conclusion
If you are a project lead and wishes for donations from fans or supporters, then think crypto. And if you wish to support a project, check out to see if it accepts crypto donations. That is a sure way to conserve value.
Note: thumbnail from pixabay
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