Why crypto is great for donations

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

You may have seen the Ukrainian government tweeting out wallet addresses for donations, and at the time of recording receiving over $34m dollars worth of contributions within a few days.

So why is crypto so useful in this case?

First, sending money internationally is a huge pain through traditional banks. It is complicated, takes a long time to arrive, and the fees are outrageous. Crypto, on the other hand,  is instant and cheap, and you don’t have to worry about local currency conversion.

Second, there is a lot of money in crypto and people may feel more generous since they already made good returns. Gavin Wood for example, former co-founder of Ethereum and creator of the blockchain Polkadot, donated almost $6 million dollars to the Ukrainian government.

And last, and this is something you probably don’t think about much, it’s easy to audit. Everything is visible on the blockchain - so you can see how much was sent and how much was withdrawn.

So, next time you donate to something, maybe it is in crypto. Just make sure you verify the receiving address really belongs to the correct recipient as there are scams everywhere.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.