Tuesday, March 24, 2015

The Future of the BitGive Foundation: Great Potential Amid Uncertainty

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Over the past three days, Bitcoin Magazine has featured stories about the BitGive Foundation; how it began and the work that it has done with charities including Save the Children, The Water Project and Medic Mobile. Its founder and sole full-time staffer, Connie Gallippi, has helped the organization grow to become the first registered tax-exempt bitcoin charity, spreading the word about Bitcoin’s potential for positive change in the world.


“We’ve continuously put out great efforts,” says Gallippi, “and we have a lot of supporters who like our work. The community has been looking for ways to improve its image and reach a mainstream audience. It would be great if we could leverage what we are already doing to accomplish this goal. Our work is making a direct impact today in ways that a mainstream audience can appreciate and relate to.”


Looking forward, the BitGive Foundation has two immediate fundraising goals: its current campaign with Medic Mobile, and support for the Foundation’s own long-term viability.


Medic Mobile is an open-source platform that supports health workers in remote communities of the developing world, using mobile technology.


“Medic Mobile has a mission that connects with our Bitcoin audience,” says Gallippi. “They are giving out thousands of mobile phones in 21 developing and Third World countries to support healthcare.”


Each phone is given to a community health worker who volunteers to take care of approximately 30-50 people in a remote village. It takes hours and days for some to walk to and from the closest doctor or hospital to exchange information.


Using the phones, along with Medic Mobile’s free, open-source platforms, health workers can communicate directly with doctors, saving them from having to walk for days and the dangers that come with it. They can also register pregnancies, track disease, keep vital supplies stocked and literally save lives in the case of emergencies.


Aside from the obvious importance of Medic Mobile’s work in health care, Gallippi saw the potential for building a network of cell phones in remote parts of the world. Early conversations were about hopes that the long-term effect of the phone distribution might also allow for the creation of hubs for bitcoin transactions, bringing financial and remittance services to the unbanked populations as well.


The foundation’s second — and perhaps most pressing — campaign is to raise enough money to keep itself going so that it can continue to take on more projects in the future.


“Right now, I’m the only employee,” says Gallippi, “and the runway is very short for me to be able to stay on full-time.”


Since the inception of the BitGive Foundation in 2013, there has been support from some key founding donors, including BitPay, Perkins Coie, Jeff Garzik, and Roger Ver, to name a few. As the two-year anniversary of BitGive approaches this June, Gallippi will be wrapping up the Founding Donors campaign.


“At the beginning, there was great support,” says Gallippi. “Then the price of bitcoin dropped and things have been pretty slow.”


She is hoping that more companies and individuals will want to take advantage of the opportunity to become founding donors, who will be recognized in perpetuity for their contributions to build the first Bitcoin philanthropic organization, before the end of the campaign.


Besides becoming a founding donor, there are plenty of ways for members of the Bitcoin community contribute to the BitGive Foundation.



  1. Become a member. You’ll support the BitGive Foundation’s efforts to offer charitable gifts and campaigns to organizations around the world on behalf of the Bitcoin community. You’ll also receive a T-shirt, discounts on events and a tax receipt.

  2. Direct your tips to BitGive. If you have an account with ChangeTip, you have the option to automatically redirect your tips to one of several charitable organizations.

  3. Engage in the Amazon Smile program when you shop on io. A donation of 0.5% of your purchase amount will be directed to the charity of your choice (at no extra cost to the purchaser), and BitGive is registered with Amazon Smile. In addition, BitGive has also secured matching donations from Bitcoin organizations. For the next few weeks, all Smile donations through Purse.io will be matched by Chain.com; those matching amounts will be directed to BitGive.

  4. Make a tax-deductible donation. Companies and individuals can offset taxable gains by making a tax-deductible donation to BitGive, a registered 501c3, using LibraTax to help optimize gains/losses and make donations go further.

  5. Buy a T-shirt or make a one-time donation through the BitGive Foundation website.


Gallippi’s long-term goal is for the foundation to establish an endowment that will protect the organization’s ability to operate to its full potential.


“Right now, we can only support one campaign at a time,” says Gallippi. “But there is potential for things to grow if we have the resources. For now, we have to make our choices very strategically.”


“Our goal has been to establish a global presence, and we’re doing that,” she adds. “Our stated mission is to improve public health and the environment, and we’re providing a way for companies in the Bitcoin space to give back.”




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Bitreserve Expands to India and Mexico; Partners with Mexican Billionaire

bitreserve

Bitcoin bank Bitreserve , founded by CNET founder Halsey Minor in 2013, shields its customers from the volatility of bitcoin by instantly locking deposits to a fiat currency selected by the customer, for example the US dollar. If you make a deposit in bitcoin to Bitreserve, you don’t have to worry about volatility, because your bitcoin can be converted to dollars on-the-fly and appear as dollars in your balance. So Bitreserve users don’t lose money if the exchange rate of bitcoin goes down – if they have chosen to convert part of their holdings to, say, $1,000 USD, they will continue to have $1,000 USD in their account regardless of any fluctuations of bitcoin value.


Of course, the reverse is also true: if the exchange rate of bitcoin goes up, you don’t make money. But today risk-averse bitcoin users are scared of volatility and many fear that bitcoin will continue to dive as it has done in 2014. In the harsh reality of today’s economy, most individuals and small businesses must carefully manage their finances, and are unable to tolerate even a small degree of volatility.


“Bitreserve is on a mission to democratize the use of digital currency by protecting businesses and consumers from the risks inherent in the bitcoin model,” notes a Forbes review quoted on the Bitreserve website.


Bitreserve users can fund their accounts with bitcoin, and can choose to hold their funds as bitcoin or “bitcurrencies” permanently pegged to gold or to a growing list of fiat currencies, including dollars, euros, pounds, yen, and yuan. Users who choose to convert their bitcoin are still able to send bitcoin payments to other Bitreserve users or external bitcoin addresses, but their bitcoin holdings fluctuate with exchange rates, whereas their converted holdings stay stable.


Recently Bitreserve announced the launch of two new bitcurrencies: the bitrupee (BitINR) and bitpeso (BitMXN), pegged to two key developing world currencies – the Indian rupia and the Mexican peso – now supported by Bitreserve’s cloud money system. Mexican Bitreserve customers will be able to hold their funds in Mexican pesos.


The most interesting part of the Bitreserve announcement is:


“The bitpeso is key to realizing the potential of our partnership with Bitreserve’s largest investor, Ricardo Salinas-Pliego, one of Mexico’s most admired entrepreneurs and the Chairman and CEO of Grupo Salinas, one of Latin America’s largest and fastest-growing business groups.”


Salinas-Pliego is the fourth richest person in Mexico behind Carlos Slim and the 168th richest person in the world, with an estimated net worth of US $8 billion in March 2015.


Grupo Salinas, a group of companies with interests in telecommunications, media, financial services, and retail stores, is a pioneer in bringing basic financial services to the poor and working class through its retail and banking arm Grupo Elektra. According to the official website, Grupo Elektra, Latin America’s leading financial services company, is “focused on the base of the pyramid” – the large mass of Latin American financially disadvantaged citizens and migrant workers in the US. The Bitreserve announcement notes that:


“With over 2,600 retail outlets and bank branches throughout Latin America, Grupo Salinas will be a key partner in bringing the benefits of Bitreserve’s cloud money system to millions of Mexicans working in the US and hundreds of millions of consumers and businesses throughout Latin America.”


The wording of the announcement and the business model of Grupo Elektra imply that Bitreserve wants to grab a slice of the large market for remittances sent from migrant Mexican workers in the US back to their families in Mexico, in partnership with a major financial services company and community bank. The plan combines the faster and cheaper remittances permitted by Bitcoin with the convenience of using the national currency.


The announcement also reveals that Salinas-Pliego is now the main investor in Bitreserve, but the amount of his investment hasn’t been disclosed.




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