Explaining cryptocurrencies to your parents can be a difficult job to do as they are not tech-savvy. They barely know how to power on a computer, let alone cryptocurrencies. But it would be best if you took the initiative of explaining it to them as they should also know the potential it holds.
So this Christmas could be the right time to sit your parents down and explain everything they need to know about cryptocurrencies and the potential it holds for the future.
Cryptocurrency is a decentralized currency that can be traded for goods and services. Many organizations have issued their currencies called tokens, which can be traded exclusively for the company’s goods and services. For instance, if you ever go to a casino, you will need to sell real currencies for casino chips in a similar way. You need to trade real money for cryptocurrency to access the goods and services the company provides.
Cryptocurrency uses a unique technology called the blockchain. Blockchain is a unique network of recording data over a public ledger network. Hence, it is almost impossible to hack, change, or cheat. Know more about Bitcoin at bitcoinevolution.
Blockchain technology works on the distributed ledger principle. There are numerous transactions in every blockchain, and each time a new deal is done on the blockchain, a record of that particular deal is added to every party’s ledger.
What Is The Total Number Of Cryptocurrency The World Has, And How Much Is It Worth?
According to the report of a market research website called CoinMarket.Cap, more than 6,700 kinds of cryptocurrencies are traded every day publicly. Cryptocurrencies keep snowballing. According to CoinMarketCap, all cryptocurrencies’ total value as of 11 December 2020 was more than $481.7B, emphasizing bitcoin, which is the most popular cryptocurrency, is $17,864.15. The total valuation of bitcoin is at a staggering $353.6B
How To Explain Cryptocurrencies To Your Parents
Christmas is a time to connect with your families, so it is good to explain cryptocurrencies to your parents.
Follow these steps to talk about cryptocurrencies to your mom and dad and let them know about the noise created in finance and technology.
It Is Just Regular Money!
Don’t start by saying that you will explain the cryptocurrencies called bitcoins. As soon as you mention this unfamiliar term, they’ll lose interest initially; instead, just start by saying money because that will keep them hooked. You can present bitcoins to them as stock. When can further go on and tell them how good it is to invest in them and the potential it carries.
By now, your Mom and Dad could have a little smile on their faces as they would probably be pleased with the fact that you know about the fundamentals of the monetary system. Keep your phone with you as you will need it a lot.
You can then show your parents the value of bitcoins on your phone and slowly start explaining to them about the whole system of the blockchain and that it is safe. This is how you can explain all the nitty-gritty of cryptocurrencies. Also, don’t forget to mention that the value of cryptocurrencies is highly unlikely to depreciate. As it has a limited number to almost 21 million.
Your parents need not agree with you when you explain cryptocurrencies to them, but you should have the patience and give them all the details to validate the prospect of investing in cryptocurrencies.
It is natural for people who are not tech-savvy to not know about cryptocurrencies, but it is our job that we should explain it to them. People associate cryptocurrency with something illegal as it has no legal backing of the government, but what they don’t understand is that it is backed by the trust of the people that invest in it.