Wikipedia, the world’s most popular online encyclopedia, has announced that it rejects cryptocurrency donations. The non-profit organization said that it would no longer accept donations in Bitcoin (BTC) or Ethereum (ETH) due to cryptocurrencies’ high transaction fees and volatility.
Wikimedia Foundation on Rejecting Cryptocurrency Donations
In a blog post on its website, Wikipedia stated:
“We have been struggling for some time with the decision to accept crypto donations. In order to support ourselves financially we need to convert our existing BTC and ETH into other currencies in order for them to be accepted by our vendors. This means that we would have had to sell our crypto-currency at an exchange rate which would have resulted in us taking a loss on our holdings.”
The Wikimedia Foundation, which operates Wikipedia, was among the first organizations to accept Bitcoin donations in 2014. However, due to its high transaction fees and volatile nature, Wikipedia has become increasingly difficult to convert its cryptocurrency holdings into fiat currency without incurring losses on its assets.
In short, Wikipedia is having trouble processing cryptocurrency donations because it is an entirely different system than that of standard currency. Do not be discouraged, however! You can consider donating through an online agency that processes crypto donations, such as Coinbase or BitPay. These companies convert your crypto into regular currency so donations can be made through a system already in place by Wikipedia.
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