The Growing Interest in Cryptocurrency
As the price of Bitcoin (BTC) continues its meteoric rise, the cryptocurrency realm has piqued the interest of a broader audience. A recent study by the Cambridge Centre for Alternative Finance revealed that a staggering 101 million people globally now hold Bitcoin or other digital assets, a major leap from the 35 million reported in 2018. This growth is entirely making the idea of gifting cryptocurrency this holiday season sound more appealing than a fruitcake at a family gathering.
Education Is Key
Before you rush off to send some Bitcoin to your loved ones, it’s worth pausing for a dose of caution. Bill Zielke, the chief marketing officer at BitPay, emphasizes the necessity of educating newcomers about the crypto world. “Not your keys, not your Bitcoin,” he reminds us, underscoring a simple truth: if they don’t understand what a private key is, they may as well be sending a postcard to the North Pole.
Understanding the Basics
For many, cryptocurrency can feel like a foreign language. Not only do potential giftees need to know the difference between wallets, but they also need to grasp terms like ‘open-source’ and ‘noncustodial.’ Failing to understand these concepts could involve a steep learning curve… or worse, losing access to their new shiny gift! You wouldn’t want Aunt Karen wandering around the internet wondering where her Bitcoin went, right?
Sending Direct or Alternative Gifting?
The tradition of sending cryptocurrency directly via wallet addresses is as old as—well, maybe not that old! For newcomers, relying on gift cards or ATM vouchers can be a more accessible route.
Gift Cards and Vouchers
- Gift Cards: BitPay has recorded a surge in purchases where users convert crypto to gift cards, particularly popular retailers like Amazon.
- Crypto ATMs: Depositors, via machines like Coinme, can give vouchers in exchange for cash or digital currency, perfect for the non-tech-savvy.
You Can Also Give Back with Crypto Donations
If you’re feeling particularly generous this holiday season, corporate responsibility is in vogue! Various charities are now accepting cryptocurrency donations, and it’s incredibly heartwarming. “Bitcoin Tuesday,” a day of giving, saw increased participation this year, with organizations like Save the Children and the American Cancer Society benefiting.
The Perks of Donating
One of the perks of this kind of giving is the tax benefits. A donation isn’t considered a taxable event, which means you can give without fear of hidden fees lurking in the shadows. As Justin Woodward, a tax attorney at TaxBit, explains, donating appreciated capital assets could help you avoid capital gains taxes down the line! It feels good to give back, and better to do it smartly.
A Look Ahead: Is 2021 the Tipping Point for Crypto?
The wide array of gifting options this holiday season certainly suggests that cryptocurrency is finding its place under the festive tree. Zielke predicts that 2021 might really become the year where cryptocurrency solidifies its status as a cool and thoughtful gift. So whether you’re gifting Bitcoin or donating to charity, remember: it’s not just about the dollar value, but the knowledge and care that goes along with it! In the end, gifting cryptocurrency may just be the trend the world needs to warm our digital hearts.
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