How to Explain Bitcoin to Your Grandparents: A Simple Guide
Are you excited about your Bitcoin profits and wondering how to explain Bitcoin to your parents and/or grandparents? The world of cryptocurrency might seem like a domain occupied exclusively by the younger generation, but that’s certainly not the case. Bitcoin is becoming a more valuable and commonplace currency as each day passes and every person who chooses to invest, regardless of age, might reap the benefits of this fast-growing cryptocurrency. Believe it or not, you don’t have to be the most computer savvy to handle this virtual currency, and explaining Bitcoin to your grandparents might be easier than you think.
How to Explain Bitcoin to Your Grandparents: The Basics
Your grandparents were likely raised in an age where technology was not relied upon as heavily as it is today. That can make the thought of explaining scary and overwhelming but it doesn’t have to be. Understanding the basics of Bitcoin is the first step to leading your grandparents down the path of cryptocurrency.
No matter where your grandparents are in their digital investing journey, there are some Bitcoin basics that are just good to know. You want to create a strong foundation of knowledge when beginning to dabble in cryptocurrency so that when uncertainty arises, you can use your smarts to support your investing decisions. First, we have to cover the basics. Luckily, there are so many resources available for people looking into getting into Bitcoins and this guide to cryptocurrency is just one. Here are some important things to know about Bitcoin before you start investing:
What Is Bitcoin?
Bitcoin is often referred to as the first decentralized cryptocurrency, finding origins in 2008 and launching in 2009. Bitcoins are stored on the Blockchain and mined by Bitcoin miners, who bring the currency into circulation. Although it is a fairly new form of currency, that doesn’t make it any less valuable. For a quick read on the correlation between gold and Bitcoin, check out this article. Unlike many standard forms of currency, Bitcoin has witnessed some of the most extreme rises in appreciation and depreciation. On April 11, 2021, Bitcoin reached an all-time high of being worth 63,000 dollars. Some cryptocurrency experts are even predicting that Bitcoin may be worth 100k sooner than many people expect. However, Bitcoin could also crash during this time. Bitcoin’s instability is beneficial when determining your investment strategy to suit the needs of your lifestyle. Sure, it’s cool to hang out all day trading, but there are also methods that employ holding onto Bitcoin for longer periods of time. This currency is as adaptable and diverse as those who choose to handle their transactions with it.
Terminology
The disconnect between the young and the old is widening every day. For those of you who have grandparents that wonder if you’re speaking another language, perhaps an overview of commonly used phrases will help you tackle how to explain Bitcoin to your grandparents. Here’s a rundown of some of the terminology used in the Bitcoin world.:
Blockchain - A blockchain is like a recordkeeper. This connects every Bitcoin and maintains every Bitcoin transaction. Data are stored in “blocks,” which signify a time when a set of Bitcoin transactions occurred. The Bitcoin Blockchain is entirely immutable.
Mining - Mining is performed by Bitcoin miners, who create new Bitcoins by processing transactions on the Blockchain. In the beginning, Bitcoin mining could be done from a common desktop computer. Today, Bitcoin mining is typically done in warehouses or containers filled with specialized computers. Miners are rewarded through the fees associated with each transaction they process (mining fees) and they are rewarded via the creation of new Bitcoin. The Blockchain provides security for Bitcoin transactions, as each transaction requires 3-6 “confirmations”; which are provided by 3-6 completely unrelated miners in 3-6 different locations all over the globe. Each miner independently determines (and confirms) the veracity of each transaction.
Bitcoin Wallet - A Bitcoin wallet stores and facilitates exchanges of Bitcoin. These digital wallets are what are commonly used to send and receive Bitcoin. Most people use wallet apps on their phones and can send or receive the Bitcoin using unique alphanumeric or (the correspondent) QR codes. Most wallets provide a private seed or private key, which is vital to your Bitcoin security. Bitcoin wallets can be one of two types; here’s a brief explanation of each:
Hot Wallet - This type of Bitcoin wallet is connected to the internet and ready for you to complete your Bitcoin exchanges. It is typically stored on your desktop or mobile devices (apps). The great thing about mobile wallets is that they can be used in person when you’re buying items from the store. More and more, Bitcoins are being accepted for in-person transactions and users like to have their cryptocurrency available for whatever. If you don’t have your Bitcoin wallet on a mobile device, there is also an option to get a web wallet, which allows you to access your Bitcoins no matter where you are.
Cold Wallet - A cold wallet is hardware that is not directly connected to the internet. These types of wallets are considered to be more secure than their “hot” counterparts because they aren’t accessible to potential hackers at all. A cold wallet physically stores your cryptocurrency. In order to access your Bitcoins on a cold wallet, you have to physically plug it into a computer. Optimal security does come at a high price. Users can expect to pay around $100 for a good cold wallet, and sometimes more.
How Can Your Grandparents Use Bitcoin?
Bitcoin is only becoming more popular as the days go on. Now it’s easier than ever to make a purchase using Bitcoin. To get your grandparents more familiar with Bitcoin, you can inform them of all the companies that have invested in Bitcoin recently. Tesla, Paypal, and Overstock are just a few of the companies that have recently invested in Bitcoin.
Tesla’s founder, Elon Musk, invested a large sum of money into Bitcoin in early 2021 and announced that they would soon allow Bitcoin to be used as payment for their vehicles. This created a lot of interest in Bitcoin, which was already on the rise, and many more companies followed suit with investments.
Paypal made a similar announcement after their investment. You can now use Paypal to buy, sell, or exchange your Bitcoin and other cryptocurrencies. When you purchase Bitcoin in this manner you can make everyday transactions with your cryptocurrencies. Paypal will convert your currency into dollars, or the currency of whatever country you reside in. Now it is easier than ever to use Bitcoin in your daily life, making it a great investment.
Additionally, there are Bitcoin debit cards and credit cards that give Bitcoin as a reward instead of cashback or airline miles. As Bitcoin becomes more popular, its use in everyday life will only become easier.
Get Exchanging!
Bitcoin has the potential to make a huge economical impact, so don’t let your grandparents miss all the action. Bitcoin can be used like any form of currency, pending the business accepts it as a form of payment. That means whether it’s grabbing a cup of coffee at your local cafe or doing some last-minute holiday shopping online, Bitcoin can be used to make your transactions seamless and convenient. While you might not be able to buy your favorite produce just yet, the number of places that accept Bitcoin is steadily increasing as the currency becomes more popular. Paypal is not the only company that is helping people spend Bitcoin in daily transactions. There are now a number of mobile apps and other sources available that will also help convert your Bitcoin into dollars.
Now, you can even buy your favorite produce at Whole Foods with the app Spedn powered by Flexa. When you use Spedn, all you have to do is scan a QR code at checkout and your cryptocurrency stored in your hot wallet will be converted into dollars for purchase! You can also use the Spedn app at stores like Nordstrom, Jamba Juice, and Crate and Barrel.
Often, Bitcoin users find that cryptocurrency offers a more secure transaction than credit cards. These transactions do not require your personal data to be completed and many find that the process is easier than conventional transactions. Bitcoin also allows you to try your hand at trading. Seasoned investors and newbies are learning more about the cryptocurrency market and cashing in on the benefits of this practice. Learn all there is to know about getting started with Bitcoin trading in this guide.
Accessing your Bitcoin with Pelicoin ATMs
The next step in answering how to explain Bitcoin to your grandparents is telling them where they can access their Bitcoins. Pelicoin is one of the most secure Bitcoin ATMs in the South. With locations spanning the Gulf South in Texas, Louisiana, and Tennessee, just to name a few, Pelicoin serves as the fastest and most secure way to turn your cash into cryptocurrency. If you live near any of these areas there is bound to be a Pelicoin ATM near you. Pelicoin ATMs are the most user-friendly Bitcoin ATM you’ll find. When you step up to purchase your Bitcoin you’ll have a step-by-step process on how to make your first Bitcoin transaction like a pro! Many of our ATMs locations are 24/7; if your grandparents are early risers or night owls, they will always have a chance to purchase their Bitcoin.
Now that you know how to explain Bitcoin to your grandparents, find one of our many ATM locations to get your Memaw and PawPaw up to speed and exchanging Bitcoin today.