If you bought $100 of Bitcoin in 2010, it’s worth $13,000,000 today. This is based on the average market price of Bitcoin on October 1, 2010.
In the last two years, we’ve seen hundreds of millions of dollars donated in the form of cryptocurrency, primarily in Bitcoin and Ethereum. When the price of Bitcoin and other cryptocurrencies boomed in late 2017 and early 2018, we saw an explosion in crypto donations made to the handful of nonprofits equipped to accept it.
Why? Cryptocurrency donations are treated like stock donations, meaning the donor does not have to pay capital gains tax and can write it off on their taxes. In other words, if they can’t donate the crypto directly to your organization, they can take their business elsewhere. This also means that many crypto donors will be new, likely millennial, donors.
After prices surged, we saw the market correct itself like it has in the past after big run ups (we can autoconvert crypto donations so that volatility is only faced by donors, not your nonprofit). The asset class is volatile, but over time, it has continued to appreciate dramatically, despite these corrections. See our infographic below:
In other words, the asset sometimes sees sharp corrections, but over any multiyear period, it continues to appreciate dramatically. For example, you may not have noticed, but Bitcoin has more than doubled in price since January 1, 2019 (+110%) until the time of writing this blog post (June 6th).
Cryptocurrency prices are rising, and nonprofits are looking to capitalize on it. The first step is being equipped to accept crypto donations.
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