The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Explain Cryptocurrency to Your Parents

by Jason King
March 16, 2018
in Crypto101

Around the dinner table, on the subway, or via social media – everyone wants to sound like they’re in the know about the latest trends. Unfortunately, that means when the trends venture into the realm of technology, you’re likely going to be the one on speed dial to explain it all. Just like those 8 AM phone calls when your dad can’t get his printer to work, or the frantic emails when your aunt’s wifi goes out, you’re the point person for All Thing Digital – and that includes crypto.

It’s time to come up with a good, simple answer to the question, “What the heck is Bitcoin?”

Here’s what the uninitiated need to know about Bitcoin and other cryptocurrencies:

1. It’s not really a coin.

At least, not in the physical sense. I don’t blame anyone for thinking you can fill your piggy bank with Bitcoin after all the images on articles showing bright, shiny gold coins with the iconic “?.” So it’s good to start with the idea that Bitcoin and other cryptocurrencies are digital rather than physical. This point in and of itself may take some explaining. Refer to the concept of a credit card and how it is a promise to pay, and how it’s way more convenient than carrying around pockets full of dollar bills.

2. It’s not the only cryptocurrency.

While Bitcoin is the oldest and largest, there are over a thousand other cryptocurrencies, hundreds of which have market capitalizations over $100,000. New cryptocurrencies can be created at any time.

3. A cryptocurrency has value because users agree it has value.

American dollars or Japanese yen are known as “fiat currency,” meaning their value is created and backed by the government of the issuing country. In contrast, cryptocurrency’s value comes from the fact that others agree that it is valuable. Here’s where I like to use the Beanie Baby analogy. Back in the Beanie Baby craze, certain Beanies were seen as more valuable than others simply because people wanted them – they were in higher demand. As demand for specific Beanies rose and fell, the price rose and fell. The little beanbag didn’t have any intrinsic value; it was merely a representation of value based on supply and demand. The same is true of cryptocurrency. The more people want it, the higher its value will go. Some cryptocurrencies (such as Bitcoin, Litecoin, and Ethereum) are in more demand than others.

4. Cryptocurrency offers some distinct advantages.

Not only does having a digital wallet full of Bitcoin or Ripple make you sound really cool, there are also some great benefits of cryptocurrency, including:– They can’t be forged, counterfeited, or reversed arbitrarily.

• Cryptocurrency can enable immediate settlement. Instead of waiting for a check to clear or a wire transfer to take place — which can take days, if not weeks — the transfer of value is near-immediate.

• Exchanges are anonymous. Forget about sending your credit card info in to a centralized database, just waiting to be hacked or stolen. Instead, cryptocurrency allows you to send exactly the information you want to the merchant or recipient with no further information. You can remain completely anonymous if you like.

• It’s more accessible. There are some 2.2 billion people around the world who are considered “unbanked” because they don’t have access to traditional financial institutions, either because of their location or their lack of official identification. Cryptocurrencies can be used by anyone with internet access.

• You maintain control. With a traditional bank or a financial institution such as PayPal, they hold the reins. If they decide to freeze your account, they can do so. But with a digital wallet of cryptocurrency, you are in charge.

The Best Frequently Asked Questions about Bitcoin, the Blockchain and Cryptocurrencies

5. You can use it to buy stuff.

Although the number of retail outlets accepting cryptocurrency is relatively low, it’s growing daily. Overstock, Expedia, Dish, Microsoft, and Zynga all accept Bitcoin (see an updated list here.) It’s expected that we will see universal cryptocurrency acceptance in the future.

6. They’re not fully regulated.

Cryptocurrencies, as of yet, are not fully regulated in the US and are therefore known as “shadow currencies.” However, American regulation is bound to happen at some point, and regulation is occurring in other countries including China and Singapore.

There’s no doubt that cryptocurrencies will continue to be headline news for the foreseeable future. And as the concept moves more deeply into public awareness, you’re going to get more questions about what they are and how they will benefit individuals like Mom and Dad. As tempted as you may be to brush off the questions, see it as an opportunity to serve as an evangelist and educate others about the excitement of crypto and even blockchain. After all, a rising tide of interest will raise all crypto boats.


Jason King – Humanitarian Hacker. Executive Director, Unsung.org. Co-Founder, Academy – School of Blockchain, the world’s first university-accredited blockchain training program. To find out more about how the Academy – School of Blockchain is working to address the developer shortfall, download a copy of the Academy’s whitepaper, “Developing the Future of Blockchain”.

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Narwhal Finance Secures $1 Million in Seed Funding Led by Animoca Ventures
    March 24, 2023
  • Sports Prediction App Pooky Launches Full Version of Its Play-and-Earn Game
    March 23, 2023
  • StormGain Launches StormGain DEX for User-Friendly Decentralized Crypto Trading
    March 23, 2023
  • KyberSwap Announces First-Ever ARB Token Liquidity Pools, Liquidity Mining and Trading Campaigns on Arbitrum
    March 22, 2023
  • Metacade Presale Hits Final Stage Before Listings, Raising Over $500,000 in Under 24 Hours
    March 22, 2023
  • Yesports Launches the Largest Esports Marketplace for Gaming Expansion Into Web3 Alongside 40+ Partners
    March 21, 2023
  • Metatime Raises $11M in Private Funding To Enhance Web 3.0 Ecosystem
    March 21, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$27,693.42
$27,693.42
0.89%
Ethereum
$1,755.91
$1,755.91
0.19%
Cardano
$0.356134
$0.356134
2.34%
XRP
$0.46226
$0.46226
8.65%
Dogecoin
$0.075076
$0.075076
0.37%

Spotlight

  • Popular Crypto Analyst Says Bitcoin Surge to $40,000 To Happen A Lot Quicker, Issues Warning on Altcoins
    March 23, 2023
  • $359,000,000 in Bitcoin and Crypto Liquidated in Just 24 Hours As BTC Reclaims $28,000
    March 23, 2023
  • ARK Invest’s Cathie Wood Says Institutions Will Come for Bitcoin (BTC) Amid US Banking Crisis
    March 23, 2023
  • Embattled Terra (LUNA) Founder Do Kwon Arrested in Montenegro: Report
    March 23, 2023
NBX Warsaw Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl