Topic: Bitcoin/Crypto Donations; The negative impact on it price (Read 138 times)

The idea behind donating with btc is for adoption but if the receiver decided to convert that btc to fiat - there is nothing anyone can do about that, assuming btc was a legal tender like fiat is, there is no need for the exchange.
Btc is meant for transactions, telling people to stop donating it is like telling people not to gift btc because the end result will most likely be the same.

Using bitcoin to donate is a good thing, and I don't see why you would consider it a bad thing. Bitcoin dumping has a lot of reasons, not just the one you are mentioning. There are a lot of sharks selling their thousands of bitcoins like Tesla did in the middle of this year, and why don't you condemn or oppose them while you go protesting charity by bitcoin?

For me, this theory is completely meaningless, because the amounts of all these donations are quite insignificant if we consider that every 24 hours Bitcoin worth at least $10 billion is traded. What is $10 million or even $100 million compared to that? Maybe the OP thinks that Bitcoin should not be used for anything other than investment, but sooner or later the majority will still sell and crash the price, as always happens.

Does the spending of Ukrainian crypto donations affect the price? You should probably read this^[1].
Donation organizers also wanna maintain the charitable value that is collected. Bitcoin to fiat exchanges in bulk is generally done OTC. And like Ukrainian donations, not all purchases have to be in fiat, some use crypto directly .


1. https://www.coindesk.com/policy/2022/03/11/ukraine-details-what-crypto-donations-are-being-spent-on/

Your only outcry is the mass conversion to fiat but have you thought about it regardless of sending bitcoin directly to donate, bitcoiners will still sell off there bitcoin to donate the fiat which is still same thing but this time they lose their privacy. Some of these donations are beyond boarders so converting the donator local currencies to the receivers currency is hard and can discourage donations but with bitcoin it can be send from different borders (countries) without this conversion worries. This also advocate the uniqueness of bitcoin to potential investors.
There also other objectives like government not hijacking the donations through bank deposits.

This will not have a negative impact on the bitcoin market price because in a donation they already have a plan with gradual sales, not all at once.

I see some charities by accepting bitcoin indirectly they have introduced it with widespread adoption among the public regardless of what they want of course to maintain their privacy, I prefer bitcoin donations rather than fiat which is more complicated than bitcoin.

We can take it from the good side so that this will be positive for the bitcoin community, if you think it's too much I think we can doubt it but it all has to be taken positively.

Without bitcoin, I believe that the amount of donations that Ukraine receives is very small, it will not even reach the Ukraine government if you use fiat currency.
Without bitcoin, many people in other countries would be unable to donate to them, you also know that transferring money across borders in fiat is complicated and time consuming. While bitcoin can solve this problem, why stop using bitcoin in this case? Using bitcoin to donate, or do charity not only does not reduce the value of bitcoin, but also proves that bitcoin is superior to all.

Why do you have a negative opinion? How can you be certain that Bitcoin will not be sold if it is not donated? Rather, it has been used for a good reason, and it is also a strong Bitcoin adaptation. Even though donated Bitcoin is not being sold, others are selling. When Bitcoin is used to give a donation, a lot of new people become intimately familiar with it. It is a direct adaptation, though it has an effect on the price at moments. However, for the long time, it is beneficial to the entire Bitcoin community. If you think negatively, take it positively.

When many people use bitcoins for any purpose including donations, then get positive value instead of thinking about the price. After all, you're never going to get them selling all the bitcoins they have in a single transaction as obviously that will affect the price, but it makes more sense not to realize that all of those bitcoins have been sold on a phased sell strategy.

Using fiat doesn't let you protect your privacy, and so far bitcoin provides a lot more protection about that so it's good to be around. However, the price will still be affected regardless of whether the bitcoins from the donation are sold or some other big sale the investor makes. There is no really good reason for your suggestion to stop people from using bitcoin as donations. I tend to choose bitcoin for donation instead of fiat which will only destroy your privacy.

Using Bitcoin to donate to causes where fiat is restricted for some reason is the exact purpose of Bitcoin; a decentralized P2P service. What happens with the Bitcoin after is not up to you and does not undermine it in anyway.
If you fear what that the receiver of your bitcoins would use them for, then you can never use bitcoins can you?

• Bitcoin is used as a means of funding signature campaigns here on the forum, but participants could simply convert them to fiat as soon as they are received, should projects stop using them too?
• Bitcoin can be used to make purchases in an online store, but the merchant could be plugged into a payment processor, which would immediately convert the coins, should we not use them for payments as well?

How about in cases where fiat transactions are restricted?

I also voted for Yes.

I mean it wouldn't have any negative impact on the price, still based on the law of supply and demand that determines the price.

Not really sure if you really understand what bitcoin is today, I mean it started as a means of payment, then it evolves itself and become an asset that can be trade on exchanges, and so everyone treat it like a digital currency. So you can do whatever you want, even used it as a form of donation.

If Bitcoin or crypto donations are used rightly with right purposes as planned initially, all donated cryptocurrency will not be dumped on a single day or within one week. The entity behind the charity will use it gradually since the beginning of donation campaign and long time after campaign ending.

Hence I don't have too much worry about price dumps because of charity, donations. They are different from hackers who will dump hacked coins on market immediately whenever they can. Hackers are different because they need quick money and they also are fearful that their identities, living locations will be discovered by communities and governments.

Why not?
The bitcoin donation was not for the purpose of the war but it is to help the victim just because of the war. How many establishments already accept bitcoin as a donation? I heard about churches accepting bitcoin donations, I heard hospitals accepting bitcoin for donations and payment, and charities that recently happen here to help those victims of disasters. All of them has been benefited by using bitcoin as a donation. You can hide your privacy if you are using bitcoin, no one knows who owns the bitcoin address though it is publicly seen the transactions. Just learn how to hide your privacy using bitcoin transactions.
Bitcoin was created for peer-to-peer payment transactions and it is a perfect tool to use in charity programs either it is your hard earn bitcoin, or don't donate if you are thinking with this.

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I voted YES.

In the last two years, we have seen massive bitcoin adoption, but bitcoin tender/legalization has been slow in comparison to the growth in bitcoin adoption. The government has continued to show their strong desire to regulate bitcoin and reduce its adoption by creating FUD, introducing difficult KYC procedures, funding various types of tools to make the blockchain and bitcoin transactions traceable to real life identity, but the bitcoin community has grown stronger and more vocal. The biggest threat to bitcoin is bitcoiners, not the government; the increased use of bitcoin for charity/donation is killing the price of bitcoin; have you ever wondered why the government prefers you to donate bitcoin to them rather than fiat? I know most of your reasons are for privacy, and some may argue that donating bitcoin is tax deductible because what you send is what you receive. Donating to charity is a good thing but donating your hard-earned bitcoin to a charity that then converts them into fiat undermines the purpose for which bitcoin was created.






For example, a bitcoin donation to the Ukrainian government is valued at approximately $10m (at the current price) was quickly converted to fiat and used solely for the purpose of charity, which is a good idea, but it had a negative impact on the price of bitcoin; why do countries that have yet to adopt bitcoin only care about bitcoin when they need donations?

To summarize, please stop donating bitcoin for charitable purposes and instead use fiat. Your privacy is determined by who receives/sends your bitcoin to.


PS; i only use the Ukriane donation as a case study since most of us are familiar with it.

what are your unbiased/ biased opinion?