I Just Don't Understand the Bitcoin Opportunity

I know — some of you are going to say, "Wow, Angie is constantly complaining that people are not open to change and innovation yet she now says she can't seem to embrace Bitcoin???!!!" Yes, it is true. I don't have a solid point of view on it — but I just can't wrap my arms around it (yet).

Apparently, my team at Eleventy Marketing Group found some great information about it and posted it in July on the Eleventy blog. And believe it or not — just yesterday the United Way announced it will start accepting Bitcoin as well.

There's been a lot of chatter in the nonprofit industry about Bitcoin. Whether we are comfortable or not, that chatter will only grow louder in the near future.

From nonprofit organizations to political campaigns, more and more information about how Bitcoin is being used to raise funds is coming to light. The marketing and commerce world is moving beyond simply talking about the vast potential of Bitcoin to seeing real results. Still, many questions remain in my mind. Here are some articles that highlight the rising interest — and use.

1. Nonprofits test the Bitcoin waters

A recent article from the Chronicle of Philanthropy looks at how a few nonprofits have tested Bitcoin with varying levels of success. The Chronicle reports that the Water Project raised $30,000 in Bitcoins (all new revenue, all recorded as a non-cash gift), while the Capital Area Food Bank of Texas has collected less than $1,000 in Bitcoin donations since February. Despite the wild variance, the article notes: "The early lurching and false starts are not unlike those experienced by other new technologies, including the Internet, advocates say. And the potential benefits are enormous."

2. Taking a 360-degree view of Bitcoin

The Freakeconomics radio podcast (a great podcast, by the way) delved into the topic of Bitcoin after a lot of listener requests. There's also the fact that when Freakeconomics radio held a fundraising campaign, it was repeatedly asked, "Why don't you accept Bitcoin?" The name of the podcast, "Why Everybody Who Doesn't Hate Bitcoin Loves It," sounds like it was written for me personally. I don't hate Bitcoin; I just have to admit that I don't totally get it, and this really helped. This podcast gives a great intro to Bitcoin — including its brief history and how it works — and provides insights from people like Silicon Valley veteran Marc Andreessen, Stanford economist Susan Athey and New York Superintendent of Financial Services Benjamin Lawsky. It's a good listen and a great primer on Bitcoin for the uninitiated.

3. Bitcoin for political fundraising

CoinDesk, a website devoted to news, info and pricing about Bitcoin, posted this article in July about Missouri congressional candidate Dan Elder funding his campaign entirely through Bitcoin donations. CoinDesk reports Elder is the first political candidate in the U.S. to accept only Bitcoin. As of today, his website is still only accepting Bitcoin, but there is no financial information listed, i.e., "amount raised." Elder (an IT specialist) is accepting the digital currency both to push the technology forward and make a statement. As Elder says, "I'm accepting BTC donations to solely fund my campaign to take a stance against the Federal Reserve and its policies which have weakened the US dollar."

So, I think I'm just not a full believer yet — and while Dan Elder's approach was admiral, what really got my attention was the news that broke yesterday about the United Way. I don't ever want to be one of those people who is categorized into the "old school" so I guess I better start to embrace this ... and fast.