What is Crowdfunding?
Crowdfunding is a way of collecting small amounts of money from a large pool of individuals such as family, friends, customers, and investors, to raise a capital for a project or a starting business, typically through the internet via social media or crowdfunding websites. It is a powerful tool for entrepreneurs or small businesses to showcase their ideas and projects to the entire world. Entrepreneurs can present their product or project in a single platform, with a compelling content or a big purpose, to drive people and create a support group.
Crowdfunding using cryptocurrencies
Since cryptocurrencies such as Bitcoin has the ability to make micro-transactions easily and fast, it is a perfect way to get funds in crowdfunding. Raising capital using Bitcoin has been a success for some campaigns recently. This works most especially for projects relating to the cryptocurrency or the digital currency itself, and also to some general campaigns, depending on the interests of the crypto-community. Moreover, the melding of these two digital trends could increase more opportunities for both sides, like the digital currencies bringing cost-effective finances to crowdfunding or the possibility for cryptocurrencies to easily hold micro-investments in businesses.
Bithope – a Bitcoin crowdfunding for charity
The crowdfunding website, Bithope.org is the first of its kind that uses Bitcoin in Europe. The website is owned by the Bithope Foundation which is a non-governmental organization in Bulgaria. Their purpose is to help non-profit and charitable organizations to discover and utilize the cryptocurrency in funding their work. They give almost all of the generated funds, at 95% to be exact, to all of their beneficiaries. The rest of the savings are used to continue helping others. They only get benefits if they receive significant funding in their campaigns.
The organization believes fully in the capability of Bitcoin as the best medium of exchange created by the human intelligence. Vladislav Dramaliev, founder, and director of the crowdfunding website said in an interview by Coinfox.info, that the technology has the potential to change a lot of aspects in our lives, such as the way we look at money, as an important one. Aside from exchange, mining and speculation, there is much more to see in Bitcoin, he added. He believed that there must be some real-world application of the cryptocurrency for the people to see. Given the dark sides that the cryptocurrency has been involved or been through, such as large thefts, failed exchanges and gambling, people missed the brighter side of the technology. Thus, it lead him to a decision to bring Bitcoin to the positive side by forming a crowdfunding platform that will primarily accept Bitcoin donations.
Since 2014, Bithope already had a number of successful campaigns. They provide a user-friendly experience to their visitors who want to support their campaigns. The campaigns can be easily browsed with complete and updated information with regards to the cause and its progress. All of the campaigns are categorized by health, nature development, and external campaigns. Bithope is proving their way to bring hope to every goals and dreams, the sick and the handicapped, and in preserving and protecting the environment. Also, this has been a great way to encourage people to get and use Bitcoin.