Some good news came out of Davos last week. Davos is an annual meeting hosted by the World Economic Forum. Most noteworthy for our industry, the founder of Coinbase, Brian Armstrong, signed the Giving Pledge. In doing so he joined more than 180 other entrepreneur billionaires from around the world whose pledge is to use their wealth to benefit the greater good. Bill Gates and Warren Buffett launched the Giving Pledge in 2010. It has arguably become one of the most powerful alliances in the world that is dedicated to tackling the pressing issues of our generation. To list Armstrong amongst these big names is very fitting. The whole premise of Blockchain and Cryptocurrency is to transform the world’s financial and accounting systems for the common good.

A Digital Solution to Poverty

One of Armstrong’s first philanthropic initiatives was the launch of GiveCrypto, a charity for relieving poverty via the digital wallet. He hopes that donors will feel burdened by their swelling digital wealth and donate some of it to the cause. Armstrong himself kicked off the project with a $US1 million personal donation.  The charity hopes to raise $US10 million in the first year and over $US1 billion in the next two years. Certainly that’s quite a goal, but cryptocurrency is an ideal vehicle for moving money. With virtually no fees and few bureaucratic overheads the charity can avoid the diminishment of donations that’s so typical of many large charities around the world. Armstrong acknowledges that distribution of funds will be the hardest challenge. Having run Coinbase for so many years, however, he knows better than anybody about fraud and tricksters. Consequently, the charity is in good hands.

Blockchain and the Developing World

If you look at the causes that are championed by the Giving Pledge you’ll see what role Blockchain can play in bringing these pledges to fruition. Pledgees donate to a broad range of causes. These include the reduction of poverty, aid to refugees, global health, education, disaster relief and environmental sustainability. The Bill and Melinda Gates Foundation is another good case in point. They believe in applying technology and science to improving the life of millions in the Third World. They are achieving this through education and research. One such initiative is the Mojaloop project, which provides financial services for the poor which they are doing in cooperation with Ripple and Coil.

Group of happy African children

Future Cryptocurrency users? Photo by Annie Spratt on Unsplash

More Blockchain Solutions

In other forums, in the Center for Global Development’s Policy Paper of July 2017 a strong case is made for Blockchain technology being able to address long-standing challenges relating to economic development. Likewise, the World Economic Forum is very upbeat about its use in changing the lives of refugees in its roundup in June 2018. In our blogs 2018 in Review part 1 and part 2 we discussed how some of the most pressing issues of our times can be tackled head on with Blockchain Technology such as climate change, the refugee crisis and even the US-China trade wars, amongst others.

Increasingly we are seeing the donation of profits from Blockchain and Cryptocurrency to charitable causes. Moreover, we can see how the capabilities of blockchain technology can be applied to solving many of the world’s problems. So it seems like Blockchain and Cryptocurrency are coming of age. As such I expect that we will see a lot more good news stories coming out in the year ahead.

Causality’s Crypto Sentiment Alerts

Causality’s own good news is that our Crypto Sentiments Alerts product has been launched. The use of sentiment analysis to monitor financial markets is something that professional investors and institutes have been doing for years to help them manage significant portfolios.  By adopting similar advanced techniques in your own market analysis, maybe you too will one day be pledging some of your new found wealth for the common good!

Also published on Medium.