{"id":7978,"date":"2022-12-27T00:15:54","date_gmt":"2022-12-27T00:15:54","guid":{"rendered":"https:\/\/xcoins.com\/?p=7978"},"modified":"2023-08-15T20:36:37","modified_gmt":"2023-08-15T20:36:37","slug":"how-to-talk-to-your-family-about-crypto","status":"publish","type":"post","link":"https:\/\/xcoins.com\/en\/blog\/how-to-talk-to-your-family-about-crypto\/","title":{"rendered":"How to Talk to Your Family About Crypto"},"content":{"rendered":"\n

It\u2019s that time of the year again, you\u2019re visiting home and those familiar topics come up again – work, family, investments. <\/p>\n\n\n\n

Have your older relatives ever given you a look when you bring up crypto? A look that reminds you of their skepticism, the fact that they don\u2019t trust it, and doubt its potential to revolutionize finance across the globe? If so, you\u2019re in the right place.<\/p>\n\n\n\n

Below, we have compiled a list of FAQs that tend to crop up among those new to the subject of crypto, and we have some solid advice as to how you can demystify the world of crypto to make your family dinners less awkward next time the word \u201cBitcoin\u201d comes up.<\/p>\n\n\n\n

\u201cIt\u2019s all a fraud\u201d<\/strong><\/h2>\n\n\n\n
\"ftx<\/figure>\n\n\n\n

<\/p>\n\n\n\n

The FTX fiasco<\/a> has tainted crypto in the eyes of many. However, this is just an example of a centralized exchange misusing its customers’ funds the same way as banks have done time and time again.<\/p>\n\n\n\n

But those who hold their Bitcoin themselves, as anyone who is serious about crypto has always strongly recommended, haven\u2019t lost a single penny. <\/p>\n\n\n\n

Bitcoin, in fact, gives people the ability to escape the clutches of banks and entities that misuse their assets, and take control of their finances completely into their own hands for the first time in history.<\/p>\n\n\n\n

\u201cIt isn\u2019t really money\u201d<\/strong><\/h2>\n\n\n\n
\"clips<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Bitcoin might not be money in the sense that you are used to, but Bitcoin has substantial value as an asset.<\/p>\n\n\n\n

Firstly, Bitcoin can be used to pay for goods and services at an ever-growing array of outlets.<\/p>\n\n\n\n

Secondly, much like assets such as gold or stocks, just because it isn\u2019t a fiat currency, doesn\u2019t mean that it doesn\u2019t have material value. <\/p>\n\n\n\n

Bitcoin\u2019s value comes from three key areas<\/strong>:<\/p>\n\n\n\n

  1. It\u2019s secure – once you have Bitcoin and you store it safely<\/a>, no one can ever take it away from you.<\/li>
  2. It\u2019s scarce – there will only ever be 21 million Bitcoin<\/a>.<\/li>
  3. It is trustless – it has an incredible capacity for executing cross-border transactions<\/a> in a seamless and cost-effective manner without needing anyone\u2019s permission (unlike how traditional banks and money-changers operate, for example).<\/li><\/ol>\n\n\n\n

    Bitcoin, like Gold, is widely accepted and appreciated for its characteristics. <\/p>\n\n\n\n

    Next time your parents suggest Bitcoin isn\u2019t money, ask them if they\u2019d rather try to spend a pocket full of gold, or a pocket full of Bitcoin.<\/p>\n\n\n\n

    \u201cIt\u2019s not even real\u201d<\/strong><\/h2>\n\n\n\n
    \"blockchain<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    While crypto may not feel the same as tangible notes of money, it is just as real and it\u2019s used to execute roughly 400,000 transactions a day<\/strong>. Cryptocurrencies are simply ways to transfer value without needing the permission of gatekeepers like banks or businesses.<\/p>\n\n\n\n

    When you type out an essay on Google Docs, there\u2019s no doubt it exists any less than when you write it on paper \u2013 and the same applies to crypto. <\/p>\n\n\n\n

    The beauty of bitcoin is its database is entirely public, to look at the backend, all you need to do is take a look at the blockchain,<\/a> which is 100% publicly available and easy to view.<\/p>\n\n\n\n

    “What is blockchain anyway?”<\/strong><\/h2>\n\n\n\n
    \"blockchain<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    A blockchain is simply a digital ledger that records transactions in a decentralized way, without relying on any central authority.<\/p>\n\n\n\n

    The way that blockchain functions is what makes it revolutionary and unique. No central authority can intervene or corrupt its technology. <\/p>\n\n\n\n

    Instead, Bitcoin is enabled by the work of thousands of independent miners<\/a> across the globe, who are paid for executing transactions.<\/p>\n\n\n\n

    “It isn\u2019t eco-friendly”<\/strong><\/h2>\n\n\n\n
    \"green<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Crypto is in fact a key driving force propelling the shift towards green energy. Bitcoin miners are incentivized towards the cheapest forms of energy, and these are typically renewable energy.<\/p>\n\n\n\n

    Bitcoin is often compared to things like VISA or Mastercard, but that\u2019s an unfair comparison, as VISA or Mastercard can block your transactions at the press of a button, whereas no one can ever stop you from spending your Bitcoin. <\/p>\n\n\n\n

    Bitcoin is actually a hell of a lot greener than other assets that can be transferred without a central authority, such as gold, which is far more environmentally destructive to mine.<\/p>\n\n\n\n

    Furthermore, the world\u2019s second-largest crypto – Ethereum, has recently gone green<\/a>, reducing its energy consumption by over 99%!<\/p>\n\n\n\n

    “Governments can ban it”<\/strong><\/h2>\n\n\n\n
    \"red<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Most states permit the use of crypto and recognize the benefits of crypto as an asset class, even investing in it themselves \u2013 about 8% of all the Bitcoin in the world is owned by governments. <\/p>\n\n\n\n

    Even though some states such as China have tried to ban it, as awareness increases, more and more states and institutions are investing in crypto and crypto solutions. <\/p>\n\n\n\n

    In any case, the fact that crypto is virtually impossible to ban in practice<\/a> is just one reason it has so much value.<\/p>\n\n\n\n

    “It’s used for illicit activities”<\/strong><\/h2>\n\n\n\n
    \"criminal<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Crypto is in fact mainly used by regular people.<\/p>\n\n\n\n

    In the criminal world, cash is still king. Crypto\u2019s inherent traceability in fact makes it far from ideal for the average criminal.<\/p>\n\n\n\n

    “It\u2019s got too expensive”<\/strong><\/h2>\n\n\n\n
    \"bitcoin<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    While Bitcoin has grown massively in value over the last decade, some still don\u2019t realize that you can acquire crypto for cents.<\/p>\n\n\n\n

    Crypto is almost infinitely divisible and can be bought in minute fractions. Here at Xcoins, you can buy Bitcoin for as little as $50!<\/p>\n\n\n\n

    \u201cYou could lose it forever\u201d<\/strong><\/h2>\n\n\n\n
    \"handwritten<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    It is true that Bitcoin is often lost forever, however, with proper precautions<\/a> this is easily preventable.<\/p>\n\n\n\n

    All that is needed to store crypto safely is to record a few simple words and store them in as safe place – or ideally in multiple safe places. <\/p>\n\n\n\n

    In fact, there has never been an easier way to safely store large values of capital in human history!<\/p>\n\n\n\n

    Managing expectations<\/strong><\/h2>\n\n\n\n

    While crypto is still relatively new as an asset class, it\u2019s only natural that people who are unfamiliar with it will be reluctant to take a risk with it. And that\u2019s perfectly normal. It’s undeniable that there are risks involved – but with great risks can come great rewards.<\/p>\n\n\n\n

    Don\u2019t be disheartened if they don\u2019t come on board. The best you can do is to just sit them down and explain the facts. If they aren\u2019t the next crypto converts then so be it. Just try not to be too smug when the time comes around to show off your gains!<\/p>\n\n\n\n

    As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making a major investment decision.<\/p>\n\n\n\n

    To stay up to date on all things crypto, like Xcoins on <\/em>Facebook<\/em><\/a>, and follow us on <\/em>Twitter<\/em><\/a>, <\/em>Instagram<\/em><\/a>, and <\/em>LinkedIn<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    It\u2019s that time of the year again, you\u2019re visiting home and those familiar topics come up again – work, family, […]<\/p>\n","protected":false},"author":22,"featured_media":7979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[758,741],"tags":[],"class_list":["post-7978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academia-2","category-academy-category"],"yoast_head":"\nHow to Talk to Your Family About Crypto | Xcoins\u2122 Official<\/title>\n<meta name=\"description\" content=\"Help your family to better understand crypto and they too can reap the benefits that crypto has to offer!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/xcoins.com\/en\/blog\/how-to-talk-to-your-family-about-crypto\/\" \/>\n<meta property=\"og:locale\" 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