My parents recently visited, we had many interesting conversations during their stay; a few were on the topic of digital currency. During these, which I have to stress the point that my parents are not "comfortable with technology" I had difficultly conveying what cryptocurrencies were and why they matter.
Initially, I felt it a good place to start with defining fiat money; noting that it didn't really represent anything of intrinsic value, other than a decree that defines it as "legal tender. This opened the dialog around "well, you can spend dollars"; considering, My interest in digital currency as a long-term investment I thought it wise to side-step the aspect of day-trading for short term gains and decided to focus my effort on how digital currency may soon be a more reliable medium for exchange.
This snippet, while interesting really only scratches the surface of how to discuss this topic with those not familiar with internet money. I would love to hear from others that have experienced similar conversations.
I think the expression 'the Internet of Money' packs a lot of the things involved in only 4 words and ties it to something people already know.
During the conversation, I used the "dot.com" bubble as a frame for reference. I figured they were at least aware of it and probably remembered its effect on the stock market. This point probably induced mixed feelings because I remember the conversation going down the line "how would I get my money out"; which isn't really the point of a long-term investment, in my opinion because assurances are like people "you can only trust them as far as you can throw them". I would never invest more than I can afford to lose and definitely wouldn't encourage others.
Our conversation settled with the agreement that they would occasionally slide small amounts into an account for investment.
post for editing sake
My parents recently visited, we had many interesting conversations during their stay; a few were on the topic of digital currency. [original] change to: My parents recently visited. We had many interesting conversations during their stay. Some were on the topic of digital currency.
During these, which I have to stress the point that my parents are not "comfortable with technology" I had difficultly conveying what cryptocurrencies were and why they matter. [original] change to: During these conversations [insert em dash] which I have to stress the point that my parents are not "comfortable with technology" [insert em dash] I had difficultly conveying what cryptocurrencies were and why they matter.
Initially, I felt it a good place to start with defining fiat money; noting that it didn't really represent anything of intrinsic value, other than a decree that defines it as "legal tender. [original] change to: Initially, I felt it a good place to start with defining fiat money, noting that it didn't really represent anything of intrinsic value other than a decree that defines it as "legal tender".
This opened the dialog around "well, you can spend dollars"; considering, My interest in digital currency as a long-term investment I thought it wise to side-step the aspect of day-trading for short term gains and decided to focus my effort on how digital currency may soon be a more reliable medium for exchange. [original] change to: This opened the dialog around, "well, you can spend dollars." Considering my interest in digital currency as a long-term investment, I thought it wise to side-step discussing the aspect of day-trading for short term gains. I decided instead to focus my effort on how digital currency may soon be a more reliable medium for exchange.
consider this line of thinking to a greater length. what did your parents say? were you able to make a comparison or a contrast of digital currencies with something irl they are familiar with and also lends itself well to be a stand-in analogy for explaining the concept to someone with little exposure to the topic