Benefits of Accepting Bitcoin for Crowdfunding Platforms

Crowdfunding campaigns have given birth to some of the most innovative products we use today. For instance, Pebble 2, a widely popular, heart-rate-enabled smartwatch, was conceptualized on Kickstarter.

The first ever online crowdfunding campaign was recorded in 1997 when the British rock band Marillion raised over $60,000 to underwrite an entire US tour. Since then, crowdfunding has gained massive popularity, primarily because it is the easiest way to support a project/cause.

The advent of Blockchain technology has made crowdfunding more secure, transparent, and widely accessible. For instance, Bitcoin, one of the most popular uses of blockchain technology, can make digital payments a breeze. It can make crowdfunding platforms truly global by allowing everyone to raise money or be a part of a global cause/campaign right from their couch.

Let’s explore the benefits of enabling Bitcoin transactions for your crowdfunding platform.

• Transparency

Payments made via Blockchain are traceable to their origin. This enhances transparency in a crowdfunding campaign, allowing all the stakeholders to track their funds and how they are being used. This minimizes the chances of fraud and makes the process transparent for everyone involved.

Enabling Bitcoin payments will help you build trust and credibility in your platform and attract more users.

• Global accessibility

Payments are a huge barrier when it comes to global crowdfunding campaigns. Many platforms don’t support international payments, and the ones that do, have extremely high processing fees.

Here, Bitcoin can help. As it is a borderless currency, anyone, from any part of the world, can invest in your crowdfunding platform through Bitcoin. Countries like El Salvador, which don’t have a stable currency of their own, have accepted Bitcoin as their legal tender. That’s because Bitcoin has no entry barriers. Users only need a Crypto Wallet and an internet connection to use Bitcoin. This makes it a lucrative alternative to fiat currencies for global crowdfunding platforms.

A Bitcoin-ready crowdfunding platform will not only attract more fundraisers but also gain the attention of investors seeking to invest in disruptive products and meaningful causes.

• Decentralization

Bitcoin transactions are peer-to-peer and completely decentralized. This minimizes undue influence from any third-party systems that may potentially confine your crowdfunding platform to a certain location or group of people. Investors can openly invest in a project if they think it’s worth their buck.

Bitcoin also empowers start-ups that cannot participate in centralized crowdfunding platforms due to restrictions imposed by the platform. This gives early-stage, disruptive startups more opportunities to get funded.

• Lower fees

Average processing fees for traditional payment gateways range between 1.5% to 3.5%. This is usually deducted from the fundraiser’s account. This means for every $100,000 raised, the fundraiser will only receive $96,500, not to mention the stringent platform guidelines they have to adhere in order to keep their campaign running.

Bitcoin payments, on the other hand, are significantly cheaper to process. Most payment gateways charge 1% or even less to process transactions. Thus, if you enable Bitcoin payments, you can not only get more fundraisers but also gain a lot of investors looking to channel their Bitcoin into an investment.

• Gofundme

One of the most popular fundraising platforms, GoFundMe, accepts donations sent through cryptocurrency. This helps them to maximize transparency and build trust among their users. The platform is accessible worldwide and has helped its users raise millions of dollars for education, emergency crises, etc.

• StartEngine

StartEngine is an ingenious equity crowdfunding platform in the US, that allows everyone to invest in early-growth companies and startups. The company started accepting Bitcoins in 2018 and never looked back. By enabling crypto payments, StartEngine minimized its transaction costs significantly while breaking the barriers to entry for most users worldwide.

• Bithope

A leading crowdfunding platform for charities, Bithope has raised over 11.7629 BTC until now. The platform supports several causes, from child education to women empowerment and everything in between. Bithope has positively impacted our society, thanks to Bitcoin and its global accessibility.

Learn More: Leading NGOs Accepting Bitcoin Donations