How to Explain Cryptocurrency to Your Mom
Imagine sitting at the dinner table sipping a drink or nibbling on some food when all of a sudden your mom says, "Son, what is cryptocurrency?". Now occasionally you will define it, but if she doesn't understand it at all, it can be tough. Why? Because the terminology used in cryptocurrency is completely exaggerated.
According to the Pew Research Center, adults under 50 (31%) and men (35%) are more likely than older Americans (16%) and women (15%), respectively, to say they have heard a lot about crypto. For a person who was born decades ago (we’re talking pre-90s for a lot of moms out there), it is always a surprise when a new trend — like, oh, say the internet or smartphones — starts to flow.
When a trend spreads all over the world, your mom is chit-chatting with her friends and they talk about cryptocurrency. Your dad gets an email about purchasing bitcoins. All of these are going around these days in every home.
So when your mom asks you, "What is Bitcoin?" or "Is it real money?" or "What is money if you can’t touch it?", if she asks those questions, don't panic. Instead, begin by explaining cryptocurrency and how it works in the simplest way you can.
Here are some ways to explain cryptocurrency to your mom.
Start Nice and Easy
A special recommendation is to not explain cryptocurrency to your mom in front of your dad. Believe me, the discussion will never go smoothly. So start explaining when your dad isn't at home or somewhere else.
Start on the mellow side, too. You can just say
"Cryptocurrency is just a normal currency like any other but with some changes."
If you begin with this line, they will become interested. You can go much deeper if your mom starts out feeling like she understands the basics of what’s going on.
It’s Money
Next, explain that cryptocurrency and all its types, like Bitcoin, are regular money. You can buy stuff with it or even invest in it. Is it a little more sophisticated than regular fiat? Sure. But it’s still money, nonetheless. Try something like:
"Well mom, it’s like money. Like normal money, bitcoins and all cryptocurrencies have a value that you can utilize to buy goods and services. It’s also a bit like a stock because, just like any other currency, Bitcoins fluctuate in value.”
Use this kind of talk to spark interest in a relatable manner.
It's Not Tangible.
If your mom is keeping up, you can get a little more complex at this point.
The only thing that is shocking to many people about cryptocurrency is that it is not tangible. This means any coin that the cryptocurrency is not physical. You cannot fill your bank account with bitcoins because they do not physically exist. Even if you have seen a coin of bitcoin, it’s just an imaginary picture of it; it doesn't exist.
Your mom may ask, "Then what will we call it or how do we even use it?"
The answer, of course, is that it’s called digital currency.
Use a credit card as an example. You don't see any money but you can still purchase goods and services with it. Moreover, using a credit card is more convenient than carrying a purse full of money. Crypto is similar to — albeit a lot more sophisticated than — a credit card. "
Cryptocurrency is the overall name:
It’s also worth pointing out that cryptocurrency is not a currency in and of itself. It is simply an umbrella term for digital currencies.
There are thousands of different cryptocurrencies available. Each of the currencies has its own worth. Some of them have more worth, and some of them have less.
"The most famous cryptocurrency is Bitcoin. It is the largest and oldest digital currency. But, the number of new cryptocurrencies is increasing daily.
A fun way to demonstrate this could be to choose an offbeat crypto, like MANA, and help your mom invest a few bucks in it.
The Value of Cryptocurrency:
It's time to explain the value of cryptocurrencies. Now you can start with your country and how your country perceives cryptocurrency.
Although it is not the official currency of the world, its global future is bright. In fact, most multinational companies have already started their business in Bitcoins and other cryptocurrencies. "
Your mom may ask, "How can it profit us?"
And the answer is that, first of all, we need to understand what cryptocurrency is. After that, we can invest in it and utilize it for many different things. It may be a complex world that is still in its infancy, but that just means both existing and potential profits are out there in a lot of different forms if you look for them.
Highlight the Advantages
Some of the advantages of cryptocurrencies include:
There is no chance for any cryptocurrency to be countered or revised.
You don't need to stand in line for a check to clear or any wire transfer.
Crypto removes the need for revealing excessive amounts of personal information.
Crypto doesn’t require a bank and only needs an internet connection to use.
Crypto is in your possession, unlike a typical bank account.
Explain these advantages. These will open the gates to understanding cryptocurrency more.
Touch on the Current Condition of Crypto
The current situation of cryptocurrencies is that they’re not regulated in most countries. For instance, in the United States, it is called the shadow currency, even if some famous personalities like Bill Gates and Elon Musk already adore digital wallets over tangible money.
Regulation in other areas of the world has taken place as well. So right now, crypto hasn't been digested by too many people and too many countries. But the advantages are too good to ignore for long. The future is all about the digital wallet.
Final Viewpoints
Explaining crypto to your mom can be just as helpful for you as for her. The nuances of the digital currency world can overwhelm easily.
Stepping back and explaining things from a 10,000-foot view every once and a while can be a great way to help you keep your own head on straight as you trade, invest, and spend. It can also avoid a lot of rolled eyes and passive-aggressive comments at every family get-together.