Bitdaf /bit·daf/ – Noun: Contributing highly appreciated bitcoin to a public charity.
Bitcoin /bit·koin/ – Noun: A type of digital currency. Specified in units, bitcoin is considered a cryptocurrency because of the encryption techniques used to regulate the generation and transfer of the units.
Bitcoin was created in 2009 after being described in a White Paper in 2008 by Satoshi Nakamoto. Bitdaf is a newly coined word, that refers to the contribution of this new form of currency to a charity, through a donor advised fund (DAF). It’s a similar concept to contributing low basis stocks to charity.
If you’ve been contacted about a donation of bitcoin through a donor advised fund, contact your bankers and legal advisors and proceed with caution.