Do your parents give you the side eye when you start talking crypto? Do they react with skepticism, ridicule or scorn when you try to explain the revolutionary nature of the technology or immense potential for financial freedom and inclusion? It’s all good, we’ve got you covered.
We’ve assembled a handy list of responses to your parents’ frequently asked questions and incorrect assumptions about crypto so you can take the tension out of family dinners and get back to more important matters, like Grand Theft Auto.
Let’s dive right in.
1. It’s not real.
Crypto is very real, it’s just not tangible.
Crypto is software, like Gmail or Photoshop. When you get an email, there’s no doubt it’s real. Same with crypto, only you have to look on the blockchain to see your crypto (which is publicly available and surprisingly easy to view).
2. What is blockchain?
Blockchain is simply a record of transactions.
It’s the way that blockchains function that make them special. No central authority governs a blockchain. It’s maintained by thousands of independent participants around the world who are financially incentivized to maintain it consistently and accurately. It’s amazing.
3. Bitcoin isn’t money.
A) That’s not true B) who cares and C) bitcoin has real value.
First of all, you can use bitcoin to purchase goods and services. Second, why does it matter whether or not bitcoin is money? Is gold money? What’s really important is whether or not it has value, which of course it does. Why it has value is an extremely complicated answer but to keep it simple, bitcoin is scarce, secure, and along with a whole host of other incredible characteristics, is becoming widely accepted around the world as having value. Just tell your parents to ask Paul Tudor Jones, Stanley Druckenmiller or Tom Brady.
4. It’s bad for the environment.
Crypto is leading the green energy transformation.
People mine crypto to make money. Energy is one of their primary costs. When they can find cheaper, renewable energy, they are incentivized to do so. More than three quarters of crypto miners are actively investing in, and using, renewable energy sources.
5. Governments will just ban it.
Most governments are crypto-friendly and recognize the industry is too big to ban.
In fact, many governments recognize the benefits of cryptocurrency and are actively working with industry leaders to enact smart regulations — like with Kraken Bank. Some governments may appear unfriendly, but they are quickly learning how crypto can improve their international competition and national security.
6. Crypto is used by criminals.
Not really, it’s mostly used by regular people.
Sure, criminals will always look to use cutting edge technology to commit crimes, but the overwhelming majority of people who use crypto are normal, law abiding citizens. Reputable cryptocurrency companies (like Kraken) are following regulations and proactively working to stop criminals from using their platforms.
7. It’s too expensive.
You can buy cryptocurrencies for as little as $10.
Crypto is divisible. An easy way to think about it is like pennies, nickels, dimes and quarters that make up a dollar. On Kraken, any coin from bitcoin to dogecoin and more can be bought with as little as $10.
8. You can lose it forever.
In rare cases, but there are many ways to recover your crypto or work with a third party to hold it for you.
You can lose crypto, but that’s the exception, not the norm. Crypto exchanges with high level security (like Kraken) can safely hold your crypto for you (and make it super easy to buy, sell and use it, too).
Crypto is still pretty new and can sometimes feel too complicated or scary, especially for the old folks. It’s reasonable that your parents may not understand it at first. Calmly sit them down for “the talk,” and we think they’ll be just as excited about it as you are.
**Only U.S. residents can purchase crypto with their bank accounts at this time