How to explain crypto to your parents

If you’re a crypto enthusiast, you’ve likely had to face the problem of how to explain crypto to those who don’t understand it. Since I began my journey to learn crypto, I’ve been turned from a skeptic into a crypto supporter. 

But before I knew anything about crypto, I definitely had my doubts about it. So I wanted to begin this series to help shine a light on cryptocurrency for those looking for a simple explanation in one convenient place–just like I was when I first started learning.

Crypto is still far from mainstream, and many people don’t understand how it works, what blockchain is, and what these technologies mean for the future.

This is especially true for older generations that weren’t raised in the digital age, like boomers and Gen X. I know I’ve faced my own difficulties trying to describe cryptocurrency and blockchain in an easy way for my own parents to understand.

So to help you out, I’m beginning this seven-part series so you can learn how to explain crypto to your parents or any older adults who don’t understand and want to learn more about it.

Why helping people learn about crypto matters

So, why should you even take the time to explain crypto to your parents or older relatives? Why does it matter?

If your parents are interested in learning about crypto, then having a concise way to explain it to them is important to encourage their interest. Crypto can be a complex subject to get a handle on for beginners. If you don’t know how to explain crypto to people, you could end up turning them off from it entirely. 

And crypto is worth learning about because it will be a large part of the future. So the more people who want to know about it, the better. 

It’s the responsibility of the crypto community to educate and reach out to people so they can be better informed and prepared for the future.

Who’s investing in cryptocurrency now?

Right now, crypto enthusiasts and users are mainly younger people. According to data collected by financial technology company Stilt, 76% of people buying crypto are millennials, or between 25 and 40 years of age.

The second-largest demographic buying crypto is Gen Z, or 18 to 24 year olds. This demographic makes up 17%. This means that combined, these two groups make up nearly 94% of crypto buyers. Interestingly though, Gen X is outspending their younger cohorts.

Another interesting point is that crypto investors are more likely to be men. According to survey data from CNBC in partnership with Acorn, only 7% of women invest in crypto, compared to 16% of men.

Clearly, the crypto community has some work to do to spread knowledge of crypto to more demographics!

What are common arguments made by crypto skeptics?

Before you learn how to explain crypto to your parents, you should be aware of the arguments crypto skeptics like to bring up. 

First, there’s the misconception that crypto is a dangerous, risky investment. While there is a grain of truth to this, it leaves out some context. 

The crypto industry is still unregulated because it is so new. For this reason, there is an element of risk that regular investments don’t have. 

However, this doesn’t make crypto inherently dangerous. If you educate yourself and stick to projects and platforms with good reputations, it can be as safe as any other investment.

Skeptics will also say crypto is dangerous because it is so volatile. This has some truth to it, too. The crypto market is notoriously volatile, and crypto enthusiasts don’t pretend otherwise. 

But if you look at the long-term growth of cryptocurrency, especially the ones that have been around the longest like Bitcoin and Ethereum, then it’s clear that holding over the long-term can be a good investment.

And as long as you remember not to invest more than you can afford to lose, then crypto can be a perfectly safe investment.

Another of the most common arguments against crypto is that you can get scammed or fall victim to a hack. Hacks are an unfortunate reality of the crypto world and are also due to the fact that the industry is so unregulated.

However, crypto is probably safer than most people think. Blockchain technology is tough to hack, so most attacks occur at crypto exchanges. Centralized exchanges, in particular, are vulnerable to hacks because the users trust that the platform will keep their investments secure for them. 

To avoid being the victim of a hack, you can take basic online security measures, like watching out for phishing scams and using two-factor authentication.

The biggest factor for avoiding hacks in both centralized and decentralized exchanges is to use an exchange with a good reputation, a large user base, and proper security features. If you take these steps, you can enjoy a safe crypto investing experience.

Why enthusiasts are excited about crypto’s future 

So, why are enthusiasts so eager about crypto? Why should your parents or older relatives be excited about crypto’s future?

2021 was the biggest year for crypto yet. Bitcoin saw significant institutional adoption by countries and was embraced by politicians in the U.S. and abroad.

El Salvador named it an official legal tender. It also announced plans to build a Bitcoin City, a mining hub for Bitcoin powered by the natural geothermal energy of a nearby volcano.

The mayors of Miami and New York City announced that they would seek to make their cities more welcoming to cryptocurrency, pledged to take some of their paychecks in Bitcoin, and created unique cryptocurrency coins for their cities.

Other crypto projects saw rapid growth, and many reached new all-time highs in the market. For example, Bitcoin reached a record high of $69,000 (though it ended the year around $48,000).

Solana saw explosive growth, becoming one of the top-performing cryptos of 2021. Avalanche also saw a major increase in value, quickly moving into the top 10 cryptocurrencies by market cap. It also saw a partnership with accounting firm Deloitte to help streamline FEMA’s disaster relief processes.

And lastly, the crypto market reached an impressive milestone in 2021: the total value reached $3.3 trillion.

With new cryptocurrency and crypto-related projects planned for 2022, such as the growth of NFTs and the metaverse, now is a great time to learn how to explain crypto to older relatives. This way, they can understand how this technology will impact the future.

What you can expect in the how to explain crypto series

So, what exactly will this seven-part series include to help you on your mission to educate the older generation about crypto? 

First, we’ll start with an easy-to-understand history of cryptocurrency and blockchain technology. This will be a comprehensive background of everything you need to know to get caught up with where the industry is today.

Then, we’ll explore how to explain crypto within the context of five different use cases:

• Investing crypto
• Crypto and banks
• Loans and lending with crypto
• Gifting crypto
• Where and how you can spend crypto

By the end of the series, you should be armed with all the knowledge you need to confidently explain crypto to your parents. Or if not, just have them read the articles themselves!