Music Business

Music Nonprofits: Bitcoin 100 Wants To Give You A Donation

Bitcoin100-headerNonprofits are always looking for donations but Bitcoin 100 says they've encountered some difficulties giving money away. The peculiar standing of Bitcoin has caused some nonprofits to hesitate but, if you're seeking financial support, a quick easy donation may still be available. I recently spoke with one music-related nonprofit that applied, received bitcoins and easily exchanged them for US dollars.

Bitcoin 100 is an organization that "exists specifically to convince new charities to start accepting bitcoin donations." They donate the equivalent of $1000 to "non-political, secular charities that prominently display an option for supporters to contribute via Bitcoin on their website."

If you're unfamiliar with Bitcoin, you can find out more via this video or these two previous posts on Hypebot:

CoinDL: "iTunes Of The Bitcoin World". Can Digital Currency Create New Music Revenue Stream?

New Way To Sell Digital Music? Bitcoins Increase In Legitimacy And Rise In Value

According to a recent news item on CoinDesk, Bitcoin 100 has encountered some difficulty giving away funds due to confusion about Bitcoin. This confusion, combined with some odd government action, seems likely to continue to be an issue.

Current Confusion Surrounding Bitcoin

Recently California's Department of Financial Institutions sent The Bitcoin Foundation a cease-and-desist order demanding they stop providing exchange services to turn bitcoins into cash.

The problem is they don't actually provide those services. Instead they are an educational organization focused on spreading the word about Bitcoin.

This troubling action helped create a bit of paranoia for a friend of mine who runs a music-related nonprofit that serves youth at risk. He received a donation from Bitcoin 100 late last week, easily converted it to US currency using Bitpay and then transferred it to their bank account.

The problem is he had hoped to use the donation as a press pitch, to show they were early adopters of disruptive technology and to make connections with other possible donors, particularly in the tech field.

Now they're holding back because they don't want to find themselves accidentally caught up in a controversy though they are going to find ways to use their involvement to start more direct conversations with relevant parties.

Seek Appropriate Counsel

So, if you're investigating this route, do talk it over with counsel and keep an eye on future developments. Other payment systems have encountered related roadblocks so some of this comes with the territory. But the unusual status of Bitcoin means that service providers will come under extra scrutiny and the confusion of California officials is reasonable cause for concern.


Hypebot Senior Contributor Clyde Smith (@fluxresearch/@crowdfundingm) also blogs at Flux Research and Crowdfunding For Musicians. To suggest topics for Hypebot, contact: clyde(at)fluxresearch(dot)com.

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