Senator Rand Paul (R-Kentucky) became the second presidential candidate in the 2016 race this week, but the first ever to accept bitcoin for campaign contributions. Paul's website allows interested parties to donate using traditional payment methods like credit cards, or with bitcoin via payment processor BitPay.

Earlier this year, Paul remarked that he was skeptical about bitcoin and said he wouldn't buy it himself just yet.

Bitcoin Goes Political

Accepting bitcoin is not a new concept in politics; lower-level candidates in several states have used the cryptocurrency over the past year after the U.S. Federal Elections Commission approved the use of bitcoin in political fundraising. However, Paul is the first presidential candidate to use the digital currency, something that could work to his advantage.

Related Link: Republican Rand Paul Announces 2016 Run For President -Reuters

Bitcoin Benefits

Not only will Paul's campaign benefit from the low service fees associated with accepting bitcoin transactions, but he is likely to attract younger, tech savvy voters who don't identify with traditional campaign messages. Since the idea behind bitcoin's creation was to develop a currency that operates outside of government control, it fits in well with the senator's libertarian ideas.

Bitcoin Value Problematic

It's unlikely that the senator will receive a large percentage of his campaign funds via bitcoin, but that could be a good thing. The rules regarding campaign fundraising require candidates to change the cryptocurrency into U.S. dollars before using it, and the large fluctuations in bitcoin's value could prove to be detrimental.

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