Trying to explain Bitcoin to the parents
Good morning/evening.
I’ve often debated whether or not to talk to people about crypto because, let’s be honest, I usually get that "oh, you’re crazy" look. Even my parents think that. I thought that once I told them our new car was from Bitcoin profits they would see the light, but no. I decided that instead of avoiding the topic or changing the subject, I’d simply answer honestly if asked.
Even when I am at work and talk to people about Bitcoin or crypto, most dismiss it as some kind of "made-up" money. I have explained that unlike traditional currencies (fiat), Bitcoin has a fixed supply, meaning no one can just print more of it at will, like governments do with money. I pointed out that fiat currencies aren’t backed by gold anymore, which means they have no intrinsic value, and I added that excessive money printing is a big reason why we’re facing so much inflation today.
With my parents I also discussed how much research I did before I even bought my first crypto, months, actually. I emphasized that I’m still learning every day, constantly exploring new altcoins, exchanges, and the evolving crypto landscape. Even though I’m not the most tech-savvy person, I’ve found that once you get into it, learning how to manage crypto isn’t so daunting. If I can do it, anyone can! I also covered the importance of using a ledger to securely store crypto and discussed general online safety like being cautious with emails, passwords, and internet security.
Most people, even my parents (still) think the banks are the safest place to keep their money, and don't forget my parents are aware that the bank lost my money for over 6 months and the hassles I had to go through to get it back! While they were here on holiday they were unable to withdraw funds from THEIR account. It is not some unusual card, a mainstream UK bank, the account had money in it. When we got back to the house, they called the bank, explained they were away and wanted to withdraw funds and was the card blocked for transactions abroad. The bank told them no all should be fine but it was not! As they were with us, it was not a problem as I could take out cash for them, but what if they had not been here?
I have also had many conversations about CBDC's with my parents and others and that also falls on deaf ears.
So what I want is a simple explanation about Bitcoin and what it is and how to actually put this across.
What is Bitcoin?
Bitcoin is a type of digital currency also known as cryptocurrency and it operates without the need for banks.Transactions are verified by network nodes and recorded on a public ledger called a blockchain. Bitcoin was created in 2009 by Satoshi Nakamoto.
How does Bitcoin work?
The system uses complex mathematical problems to verify transactions, each block on the blockchain contains transactions and the chain is managed by a network of computers (nodes)
Why is Bitcoin valuable?
It has a limited supply—only 21 million Bitcoins will ever be created, which makes it scarce. The demand from people buying it over time, increases the price.
Mainstream adoption
ETF's (Exchange Traded Funds) and banks are now buying Bitcoin.
Have I oversimplified? Should I add more?
I would appreciate your thoughts, how should I talk about this? Perhaps I come across as too enthusiastic or perhaps I do sound a little crazy, I don't know but it does get a little frustrating at times. How do you explain crypto to your family or friends?
As always, thank you for reading.
