A New Cryptocurrency Draws Its Power From Unicorns

Cryptocurrencies like bitcoin earned a bad reputation in the press after several high profile scams depicted the currency as a tool for illegal activity. However, many say that despite digital currencies' shortcomings, they offer charitable organizations an interesting opportunity to raise money from around the world without the cost of a third party intermediary.

Unicoin

UNICEF and the H&M Conscious Foundation are hoping to capitalize on that opportunity with a new program aimed at giving underprivileged children access to quality care and education.

The two organizations have created Unicoin, a cryptocurrency that draws its power from children's unicorn drawings.

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Getting Children Into Giving

Young children around the globe are encouraged to draw and submit drawings of unicorns, along with a few lines that sum up their plans when they grow up. The drawings are uploaded to the foundation's website, which in turn donates one notebook and pencil to a child in need.

The initiative has been praised as a great way to integrate digital currencies into charitable giving, as well as a good introduction to philanthropy for young children.

Charities Using Cryptocurrencies

While Unicoin has been touted as the first "charitable cryptocurrency," other organizations are experimenting with accepting digital currencies as well. The American Red Cross and Save the Children are among some of the big name charities that now accept bitcoin donations in hopes of garnering support from new segments of the population.

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Still Some Risks

The low transaction cost associated with bitcoin has been a major draw for charitable organizations, as the total amount a user donates goes directly toward the cause.

However, critics say that bitcoin's volatility cancels out that benefit, as charities have to quickly change the donations into another currency to avoid major price swings.

Image Credit: Public Domain