Bitcoin Water Trust, With Unique HODL Charity Model, Quickly Raises $1.3 Million In BTC
As a keen environmentalist for many years, I was intrigued to see the lead story on this project skim through my Twitter feed the other day, so I thought I'd take a closer look.
It seems that during the 2021 Bitcoin conference in Miami, the trust was announced as an exponential growth fund for providing clean water, presumably in places of need.
The initiative's 'unique treasury management strategy', termed the "HODL MODL," will hold all bitcoin received until 2025 in order to increase the size of the fund and thereby help more people.
The Bitcoin Water Trust has already received 33.75 BTC (over $1.25 million) since it's launch on June 4 with BTC rising around 8% over the same timeframe.
U.S.-based bitcoin exchange Gemini, which is providing cold storage custody for the trust, commented:
"This new charity model — the HODL MODL — creates a new paradigm for charitable giving, It brings the HODL ethos of Bitcoin to charitable giving, and means your bitcoin donation today could make an even bigger impact tomorrow."
Additionally,, Gemini's founder brothers, Tyler and Cameron Winklevoss (of Facebook fame), will match the first 50 BTC received by this phase of the trust's development.
See, the crypto-donation-collection activity of the charity, charity: water, was actually established in 2014 and has received over 565 BTC to date, but the coins received were immediately converted to fiat and used to fund projects and operating expenses.
This meant that the charity missed out on Bitcoin's exponential price rise over the years, thus the 'new model, new trust'! Now all Bitcoin received will be held until 2025, seeking to reap future price run-ups.
There is always some ambiguity in my mind about charity especially when run by multi-billionaires but in an area of clear need and the absence of co-ordinated inter-government action it should be seen as a good thing and can certainly convert some of the wealth generated by cryptos for social benefit. On that basis let's hope these investments go up!
About the group
charity: water, has sought to end the global water crisis since it was founded in 2006. Over the past 15 years, donations to charity: water have funded almost 65,000 projects, giving access to clean water to over 12.7 million people. According to the nonprofit's website, 785 million people around the world currently live without clean water.
By accepting and holding bitcoin, charitable organizations worldwide can leverage Bitcoin's path to adoption, marked by ever-growing purchasing power until it becomes a widely-accepted unit of account, to have a bigger impact in making the world a better place.