Bitcoin's sudden downfall made a huge loss

Ron Watkins’ congressional campaign recorded a 27 percent loss on Bitcoin investments during his first six months as a candidate. Watkins is a Republican House candidate in Arizona and is commonly regarded as the brains of the QAnon conspiracy theory.

The Federal Election Commission sent Watkins, a crypto fan, a letter this week with queries about the source of funds in his first-ever campaign finance report, which he had already updated. While his fundraising totaled $51,000 for a man who reportedly once commanded an internet army, the newly revised form, filed last week, shows that he has raised more money.

Two Bitcoin gifts totaling $1,255 were among the previously unreported donations. However, the statement also stated that 27 percent, or $342, had already vanished due to the currency’s depreciation.

As campaigns debate whether or not to accept bitcoin payments through their digital wallets, they could heed the advice of an unlikely source.

Market’s volatility

Because the FEC is leery of unregulated and murky digital money, bitcoin is still not treated as currency, and the crypto market’s inherent volatility causes further issues in the political realm.

Crypto donations are instead reported as in-kind contributions, similar to a private trip or a payout to a pornstar. Additionally, no donation amounts higher than $100 have been formally sanctioned—though they haven’t been publicly capped either.

Are crypto donations real?

In other words, a $100 Bitcoin donation made in October would have been worth $75 at the end of the year if Watkins had kept it.

Watkins’ two Bitcoin gifts, however, occurred soon before a December “flash collapse” that saw Bitcoin’s market value fall by about 20%. Watkins also promised a new Bitcoin campaign donation mechanism at the time, using a website that “you might or might not be able to find,” though he assured supporters that “it is real.”

It’s impossible to estimate how many candidates have chosen to accept Bitcoin, and reporting regulations that aren’t well understood make it difficult to know for sure how many have accepted donations, though experts believe that the number has risen dramatically in recent years.

According to federal documents, the Watkins campaign appears to be the only one of those committees to have declared an exact loss on Bitcoin donations.

ALSO READ: Why does Ripple co-founder want Bitcoin to shift to proof-of -stakes?

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing