How to Explain Bitcoin to Your Parents
When your parents ask questions, either they do not agree with your idea or link it to their younger years, it ends up somehow.
That's not a concern, of course, except if you talk about new tech that has the potential to change your outlook. Bitcoin is one of the hottest topics today, but not everyone, especially when you talk to oldies like your parents, can understand its full potential.
But without having a blank look, how do you describe it to them?
First point: Its money, just digital
Don't use jargons like blockchain to describe Bitcoin, but rather explain it using examples to which they may relate. It's a major no-no to identify something unknown with something similarly unknown.
You may link it to money or stocks on a regular basis. Explain that Bitcoin is currency that has value on a daily basis and can be used to purchase products and services. It is also equivalent to stocks because, depending on supply and demand, the value fluctuates. Unlike Bitcoin, however, it doesn't give any dividends.
Second point: Relate it to a mountain
Now here's the part where your parents are going to wonder where you get Bitcoins and whether you have one in your pocket. We bet that your parents would recognize the term "digital money" so that you can use it for Bitcoin purposes.
You may even claim that it's like a debit card or when you are charged by direct deposit by your manager. Without touching one hand, the money goes straight into an account.
We'll use the example of a mountain named Mount Bitcoin, where there are miners, to ask where you can get one. Those who mine Bitcoin do it with a lot of computing power via their computers. It's like mining another scarce resource, gold, which requires specialized and costly machinery as well. So, in the hope of getting, perhaps, one Bitcoin that can be broken up into many little pieces and distributed in exchange for the kind of money you're familiar with, these Bitcoin miners are giving up something.
Third point: Where to spend Bitcoin
It will give your mother some excitement. Imagine getting one Bitcoin equivalent to 11,000 dollars?
Who's not going to go nuts about spending that amount? You might use it on websites that allow micro transactions or at least Litecoin, because there is no transaction paid for expenditure, say a few pennies.
You should tell your dad how a lot of people use them for their investments. Like, because the returns are better, they put money into Bitcoins. We're betting that Bitcoin prices have been very unpredictable. One Bitcoin has jumped from $4,000 to over $11,000 in the past year will get your dad to leap for excitement.
You see, it's not easy to describe anything new to your parents, but we're sure they'll understand how Bitcoin works if you follow these points and try hard enough.
Who understands that when they see how they might actually help ease transactions typically made terrible by conventional payment options, they could even invest in cryptocurrencies.