With Bitcoin recently reaching a high water mark of an all-time high of $11,500, it’s inevitable that relatives will start asking questions.
When your parents ask questions, they end up either disagreeing with your idea or in relation to their young age.
Of course, this is not a problem unless you talk about new innovations that could change their point of view. Bitcoin is one of the hottest topics today, but not everyone can grasp its full potential, especially when you talk to oldies like your parents.
So, how can you explain to them without getting an empty look?
First point: His money, just digital
Do not go explain Bitcoin using jargon like cryptocurrency, rather explain it using examples to which they can relate. To define something unknown with something so unknown is a great no-no.
You can report it to a cash or regular inventory. Explain that Bitcoin is regular money that has value and can be used to buy goods and services. It is also similar to equities because the value fluctuates with supply and demand. However, it gives no dividend, unlike Bitcoin.
Second point: Connecting to a mountain
Now here is the part where your parents will ask where you get Bitcoins and if you have one available in your pocket. We bet your parents will understand the term “digital money” so you can use it for Bitcoin.
You can also say it’s like a debit card or when your boss pays you by direct deposit. The money goes directly into an account without touching a hand.
On the question where you can get one, we will use the example of a mountain called Mount Bitcoin where there are minors. Those who use Bitcoin do it through their computers with a lot of computing power. It’s like exploiting another rare resource, gold, which also required specialized and expensive equipment. So, these Bitcoin miners give up something in the hope of getting, perhaps, a Bitcoin that can be divided into several small pieces and distributed in exchange for the type of money you know.
Third point: Where to spend Bitcoin
This will give a shiver to your mother. Imagine having a Bitcoin equal to $ 11,000?
Who would not go crazy to spend such an amount? As no transaction is charged, say a few cents, you can use it on sites that accept micro-transactions or at least Litecoin.
For your father, you can tell how many people use them for investments. Like, they put money in Bitcoins because the returns are better. We bet by saying that Bitcoin’s values have been quite volatile. Over the past year, a Bitcoin has climbed from $ 4,000 to over $ 11,000, which will make your father leap for excitement.
You see it’s not easy to explain something new to your parents, but if you follow these points and try hard enough, we’re sure they’ll understand how Bitcoin works.
Who knows they could even invest in cryptocurrencies when they see how they could potentially help facilitate the transactions usually made horrible by traditional payment options.