Podcast Summary: "Turning Bitcoin into Clean Water with Scott Harrison" - The Peter McCormack Show (WBD412)
Introduction
In episode WBD412 of The Peter McCormack Show, host Peter McCormack interviews Scott Harrison, the founder of Charity Water. The discussion centers around Charity Water's mission to provide clean drinking water to those in need and how the organization leverages Bitcoin to amplify its impact. Released on October 20, 2021, this episode delves into innovative fundraising strategies, the challenges of water poverty, and the personal journey that led Harrison to establish one of the most transparent charities in the world.
Background of Charity Water
Scott Harrison shares his personal story, highlighting the transformative experiences that led him to dedicate his life to solving global water crises. From a troubled past in the New York City nightlife scene to volunteering in Liberia, Harrison's commitment to humanitarian work shaped the foundation of Charity Water.
Scott Harrison [44:17]: "I was the good Christian kid who didn't smoke, didn't drink, didn't sleep around, didn't swear... I wanted to make a big change. I sold everything I owned and said, 'I'm going to start a movement that helps people get clean drinking water.'"
The Problem of Water Poverty
Charity Water identifies a staggering global issue: 771 million people—approximately 10% of the world's population—lack access to clean water daily. Harrison emphasizes the multifaceted impact of water scarcity, including health issues, economic setbacks, and educational barriers.
Scott Harrison [17:15]: "771 million people live without clean water. 82% of them live in rural areas, and the consequences include disease and death."
Charity Water's Approach to Solving the Problem
Charity Water employs a unique, solution-agnostic approach to address water scarcity. The organization focuses on sustainable projects tailored to local environments, such as drilling wells, constructing bio-sand filters, and implementing rainwater harvesting systems. A critical aspect of their strategy is transparency, achieved by separating overhead costs from project funds and maintaining two distinct, audited bank accounts.
Scott Harrison [10:42]: "From day one, we have split out the overhead from the water projects. A small group of about 120 people pay all the nasty overhead, and 100% of donations go directly to building water projects."
Use of Bitcoin in Charity Water
Recognizing the potential of cryptocurrency, Charity Water began accepting Bitcoin donations in 2014. This early adoption allowed the organization to tap into a new demographic of donors who appreciate the decentralized and transparent nature of Bitcoin.
Scott Harrison [14:17]: "We accepted Bitcoin in 2014 and turned it into clean water for people in need. Our first Bitcoin donor was Tony Hawk, who pledged $1,500 with five Bitcoins."
The Bitcoin Water Trust
To further harness the power of Bitcoin, Harrison introduces the concept of the Bitcoin Water Trust. Instead of immediately selling donated Bitcoins, the trust holds them until at least 2025, allowing the cryptocurrency to potentially appreciate and thereby increase the funds available for clean water projects.
Scott Harrison [16:45]: "We're going to call it the Bitcoin Water Trust and hold it all until at least 2025. 100% of the Bitcoin would go directly to build water projects in 2025 and beyond."
Impact and Success Stories
Charity Water's initiatives have already made significant strides. With over 13 million people served and $600 million raised, the organization showcases measurable outcomes, such as an 82% reduction in diarrheal diseases in Nepal following a major water project.
Scott Harrison [52:32]: "We saw an 82% reduction in diarrheal disease in Nepal after implementing a clean water project."
Personal stories, like that of Helen Appio in Uganda, illustrate the profound human impact of access to clean water. Helen recounts how proximity to a clean water source restored her dignity and improved her quality of life.
Scott Harrison [52:32]: "Helen said, 'Now I am beautiful,' because she could finally wash her face and body with clean water."
Economic Aspects and Fundraising Methods
Charity Water's model ensures 20% of every dollar raised goes towards overhead costs, a reversal of the typical charity structure where much more is consumed by administrative expenses. This efficiency is supported by a robust membership program that fosters steady, recurring donations from 75,000 members across 147 countries.
Scott Harrison [58:11]: "We run at 80% programs efficiency, and 20% goes to run the organization."
The organization also leverages high-profile matches, such as the Winklevoss twins, to encourage Bitcoin donations, further enhancing their fundraising capabilities.
Conclusion and Call to Action
Scott Harrison concludes by urging listeners to support the Bitcoin Water Trust by donating Bitcoin. The initiative not only promises immediate impact but also the potential for amplified benefits as Bitcoin appreciates over time.
Scott Harrison [64:37]: "The Bitcoin Water Trust is a simple idea. We're going to hold Bitcoin and release it in 2025 to maximize its impact on clean water projects."
Peter McCormack reinforces the call to action, encouraging listeners to contribute and support Charity Water's innovative approach to global water challenges.
Peter McCormack [67:04]: "Everyone go and support Scott. This is an amazing project, dude. Like, keep crushing man."
Key Takeaways
- Charity Water's Mission: Provide clean drinking water to 771 million people worldwide.
- Innovative Funding: Utilizes transparent funding methods, separating overhead from project funds.
- Bitcoin Integration: Establishing the Bitcoin Water Trust to hold and appreciate Bitcoin donations until 2025.
- Proven Impact: Significant reductions in waterborne diseases and economic improvements in communities served.
- Community Engagement: Robust membership programs and high-profile donations drive consistent funding.
Notable Quotes
- Scott Harrison: "We want everybody on Earth to have access to clean water. It’s the most basic need for life to be healthy and to thrive." [10:15]
- Scott Harrison: "If you gave me Apple stock today... The donor is giving us an asset to turn into impact immediately." [14:18]
- Scott Harrison: "Charity Water was one of the first to get a million Twitter followers, first to use Instagram." [14:17]
- Peter McCormack: "Everyone can stand for clean water. Whether you're a Republican or a Democrat or an independent or a libertarian." [52:32]
How to Support
Listeners can contribute to the Bitcoin Water Trust by donating Bitcoin through Charity Water's dedicated platform:
- Donate Bitcoin: charitywater.org/bitcoin
- Follow Charity Water: Engage with their initiatives and stay updated on project developments.
Final Thoughts
This episode underscores the intersection of philanthropy and cryptocurrency, showcasing how innovative financial tools can drive humanitarian efforts. Scott Harrison's vision for combining the transparency of Bitcoin with the urgent need for clean water presents a compelling model for future charitable endeavors.