With over a thousand different cryptocurrencies available, experts predict that it will become a mainstream way of fundraising by 2025 – something that has the banks more than a little nervous, but presents a very exciting opportunity for charities.
The early adopters have proven that cryptocurrency is both a viable means of enterprise and a valid way of doing business. The rest of the world - including charities - is following suit.
For charities it represents a viable and relatively inexpensive means of fundraising that requires little more than the computer power and energy already available to you.
No additional personnel, no canvassing or clip boards. Just hardcore revenue generation.
Why should a charity mine cryptocurrency?
A better question is: why not?
Cryptocurrency represents a whole new frontier in fundraising for charities no matter who you help or how you help them.
Whether your organisation supports individuals with mental health issues or displaced persons fleeing conflicts, cryptocurrency allows you to put your existing infrastructure to use, raising funds through crypto mining.
The explosion of new cryptocurrencies entering the space, since Bitcoin’s success since 2009, means that there are currencies out there to suit more or less any size of organisation and infrastructure.
Of course not all currencies are a good investment – some will increase in value quicker than others and some will fall out of use altogether.
Just as with fiat currencies or the stock market you need to put your efforts into the right crypto or risk your return on investment, but some expert advice and a little research can minimise that risk.
Because cryptocurrency is a largely stable, tradable commodity, it has the potential to increase in value, making it a potentially lucrative investment, especially if you leverage the various methods at your disposal.
How does a charity mine cryptocurrency?
Mining as a term is a little misleading. In practice mining a crypto coin is actually successfully solving a complex mathematical equation before anyone else.
The more processing power at your disposal, the more likely you are to solve the equation.
Although some currencies, like Bitcoin, require vast warehouses teeming with application-specific integrated circuits (ASIC) running 24 hours a day to win coins, increasingly cryptocurrency can be mined using an off-the-shelf PC or laptop.
All that’s required is crypto mining software, a crypto wallet and a little research into which currency to mine. You should consider:
How much of the currency has already been found? – Bitcoin has been heavily mined hence its significant value, and the difficulty in mining it.
How much the coin is worth and what is its trading history? – Much like any commodity, an overtraded coin may start to decrease in value. Plus if no one wants the currency you’ve mined it’s essentially worthless.
How competitive is the space? – You want the currency to be reasonably popular as it boosts the value. However, the more people mining, the harder it is to win your chosen crypto.
Once you’ve considered all the options you can start mining.
Cryptocurrency Mining Pools
Going it alone in the world of crypto is a perfectly acceptable approach. Even as an organisation you can set all your computers to work mining cryptocurrency and, if you do well, you may make a few pounds a day.
If nothing else it’ll help with the utility bills.
Mining pools allow you to add your processing power to that of others in order to improve your chances of winning a coin. The pool then splits out the prize money equally amongst the participating members.
Much like a lottery syndicate, you increase your overall chances of winning but the pot is diluted by the number of people chipping in. However, when it comes to mining, it’s not a once in a lifetime win but an ongoing revenue stream.
However, as a charity you need to consider the following:
Fees: the pool owner can charge the pool a fee from your overall earnings. This is fairly standard and the percentage varies from pool to pool. It’s just something you need to be aware of when calculating any projected return.
Reputation: some pools are less reputable than others. Equally so are some miners. Getting involved in the wrong mining pool can make you unwittingly associated with some fairly unsavoury types.
It’s worth noting of course that individuals all over the world attempt to steal or commit fraud in order to acquire fiat currencies, so in this respect crypto is no different and – as in the real world – you need to choose your allies carefully.
However, what if you were to gather together your total mining might, add it to that of other organisations like yours and then boost it with a vast mining infrastructure like ours?
Every charity in the pool would be approved so you can be confident that the organisations you’re pooling with are on the level. It also means that every single penny raised through mining goes to good causes.
Plus a proportion of our handling fee goes back into the charities we work with. So you have the potential to earn twice.
How can supporters use cryptocurrency to help your charity?
What is a charity without its supporters? They are your biggest advocates and your most loyal defenders. Or at least they were.
Thanks to the modern banking system it has become incredibly easy for your supporters to simply donate an amount of money each month and never engage with you or your cause.
Supporters have become passive.
This can be a challenge. We all know how the average person responds when fundraisers catch them on the high street or on their front step.
They feel cornered, pressured even. No matter how important the work you do is, any donation will be made under duress, shattering trust and increasing the chances that the individual will cancel their donation as soon as possible.
There’s a good chance you’ll lose their support too.
Asking your supporters to mine for crypto, however, requires nothing more than the time they were already investing, some CPU power and a smattering of electricity.
The average person spends over 27 hours a week online – and due to the rise in cloud based systems that number is expected to increase – so the potential across your entire supporter base to support your mining efforts is vast.
Whether they download the Cudo Donate app or visit your website, they can lend their processing power to your mining efforts. That means your fundraising efforts are amplified dramatically. Your organisation never stops mining which means your earning potential increases exponentially.
But the great thing about people is that they like it when they are part of something. Taking such an active role in your success – albeit by doing something they were doing anyway – is all they’ll need to start talking about your fundraising efforts and encourage others to follow suit.
Most people like the idea of giving their time and money to charity, but with every will in the world, most people are just too short of both. Crypto mining is a way they can contribute to your success rather than just handing over the cash. They’re able to give you their time without – effectively – giving you their time.
A fundraising initiative that engages supporters, raises money and requires little to no investment of time or money on both sides is too good an opportunity to miss.