When it comes to explaining technology to your elders, there is a lot to take into consideration. For one, almost everything you are describing can seem foreign to them. Remember, your grandma can remember a time before TVs were even a thing. While the differences between your 90-year-old grandma’s time and today are great, they aren’t anything that should discourage you from attempting to explain cryptocurrencies if asked.
The very first thing to remember is to go slow. You will need to start from the beginning. Most of your grandparents are already using the internet to stay in communication with family via social media channels. As such, they are accustomed to using computers for entertainment and work.
It will take More than One Session
One thing to consider is that the intro to cryptocurrencies is like learning a foreign language for many people. For example, you can explain to someone what it means to speak Spanish and its history. However, until they go out and use the language, they are not going to fully understand it. The same goes for cryptocurrencies.
As such, it’s vital to take your time when explaining this game-changing technology to Nana. Don’t try to force too much information into one sitting. if you do, it can become overwhelming. The last thing you want to do is drone off into blockchainlandia while your grandma sits in confusion. Always take it slow and only move forward when their interest is peaked.
A Freer Form of Money
The best place to start is to explain that cryptocurrencies are money without government. In many instances, your elders will have some gripes with the government over economic issues in the past. You can explain to them that the creation of decentralized currency is due to the same issues she has had with these systems back in the day.
The main goal of this approach is to make her aware that there are now more options to consider. If you’re successful in this endeavor it will spark a candle of interest in Nana’s mind. You can tell when she is prepared for more information when she asks you a question that leads to a more in-depth discussion. This is the sign to proceed.
Eventually, you are going to want to start with the underlying technology behind most cryptocurrencies, blockchain. The easiest way to explain blockchain technology is through an analogy using people. For example, you could say, imagine a group of ten people in a room. Now let’s say one of them is designated the banker. It’s their job to process transactions and such.
Centralization is Outdated
This person is like the banking system today. That person has all the control over the financial aspects of the group. They can issue more money if they feel like it. They can also block users from conducting transactions that they deem not beneficial to their cause or power structure. Now, explain to them how the same scenario could be improved via decentralization.
Decentralization for All
Using the same example, tell them to envision the scenario but rather than just one person in charge of the financial system, everyone plays a part in it. Through a vote, the network ensures that it remains secure and valid. Unlike the centralized version, everyone is aware of the health and transactions on the network. Additionally, there is no way for anyone to scam the system or create more currency which unbalances the network.
Next, you should go over the history of fiat currencies in terms of inflation. The best way to do this is to ask your grandparents how much stuff used to cost back in the day. They will be more than happy to explain to you that they bought a house for like $30,000 when they were your age. They will also let you in on the fact that you could buy a soda for 10c and more. These days seem like a millennia ago.
Inflation is a Problem
The main thing you want them to realize is that inflation is a very real concern, especially for the elderly and those on a fixed income. Inflation is a loss of buying power of a currency. Fiat currency is subject to inflation as part of its core processes. Over time all fiat currencies lose value as governments print more into the market.
This problem has reached new heights as the current Covid-19 pandemic has created a scenario that is ripe for hyperinflation. Government officials have issued trillions in fiat currencies which has done little more than drop the value of these assets significantly. For example, studies have shown that 30% of all USD in circulation was printed over the last year. It’s no coincidence that inflation is at a 40-year high. The price of everything from food to energy is up.
Another excellent aspect to bring about blockchain technology is how it improves transparency. When everyone can see the entire network, no funny business goes unnoticed. The same can’t be said for centralized currencies. The average person has no way of monitoring these systems in a trustless manner like cryptocurrencies.
Another point that can help stir Nana up is the fact that the bank lends your currency out to other people and makes profits. You have no control over where that money is lent and for what services. The bank could be lending these funds out to people that support many of the groups your granny doesn’t support. A better option is to retain control over your funds using a blockchain network.
The Best Options go to the Richest
Now is also a good time to point out that the best options in the market are only available to a select few traders. The average citizen gets left out of the most profitable maneuvers due to restrictions such as the need to be an accredited trader. The term accredited trader means that you must possess at least one million in liquid capital. It’s hard to deny that this structure isn’t good for the average person or their grandchildren.
Global Currencies for a Global Economy
The world is much smaller than when your grandma was growing up. It used to take time to send messages to people and now we enjoy 24/7 live communication across multiple platforms and the metaverse. While all of this tech jargon can seem like gibberish to your granny, she will be able to relate to the fact that times have changed.
You should ask her about how she used to communicate in her day. How did they bank? What financial mishaps did she live through? Every grandma alive today has lived through many recessions in her lifetime. She can understand that avoiding these issues is paramount to success.
It’s vital to let her know that blockchain assets are international. They can be sent across the planet in seconds. This makes them ideal for relatives that want to send funds to their family, especially grandmas seeking to provide grandchildren with holiday and birthday gifts. In these scenarios, Nana can save a ton and learn a new skill that is sure to come in handy later.
Why The US went off the Gold Standard
Most grandparents can remember a time when the US was still on the gold standard. For those individuals, it would be wise to discuss how and why the US and others went off the gold standard. For the EU, the gold standard was dropped after WWII as the countries had spent all of their gold reserves fighting each other.
This situation left the US as the sole gold-pegged currency in the world. Consequently, the European powers chose to peg their currencies to the USD as it was at that time the world’s superpower. Notably, the US went off the dollar standard for the same reasons as the EU, to pay for a war.
The Vietnam War cost the US so much money that they needed to free up the printing press to keep up. Sadly, this resulted in the US dropping its currency’s backing and instead, going with a system of printing when desired.
It Wasn’t That Great
It’s also a good time to mention some of the shortcomings of the gold standard. For example, gold wasn’t great for micro-transactions. Additionally, the sheer size of today’s economy was far more than the gold standard permitted to exist. These factors showcase how a new type of currency was needed. The world needed something that was like gold and cash, but digital, and harder to fake, like cryptocurrencies.
Explain How Cryptos Build Wealth
Another great point to explain to nana is that cryptocurrencies provide much more wealth-generation strategies. Generating wealth through passive income is the best way to achieve financial freedom. This strategy is proven to be effective. However, in your Nana’s day, it was much more difficult to secure passive income streams.
The most popular forms of passive income were royalties, residuals, and rental properties. All of these methods of passive income are available today but they have been outdone by today’s advanced DeFi (Decentralized Finance) networks. These systems remove the bank from the financial ecosystem and replace it with users.
DeFi is For Everyone
The DeFi sector introduced a variety of ways for users to grow wealth via low-risk passive income streams. There are even features that are designed to mimic familiar features like high-yield savings accounts. Rather than bogging grandma down with how and what DeFi is, you should just do some simple comparison.
High Yield Savings Accounts
The best one to start with is your local bank savings account. The average APY for a US savings account sits at a ridiculously low 0.03%. This rate doesn’t even keep up with inflation. In the end, savers are losing for keeping their money in the bank. Point out how networks like META 1 offer 10% APY to all users regardless of their location, age, or financial history.
Another vital thing to mention is that many crypto projects are community ran and feature capped total supplies. Coins like Bitcoin possess great store of value characteristics due to their capped supply. There is only 21 million Bitcoin that will ever see the market. This scarcity is verifiable via the blockchain by anyone. As such, it’s easy to see, how over time, these digital assets appreciate.
Explain to them that Not Every Cryptocurrency is the Same
If you have gotten this far with Nana, she is getting interested in the blockchain space. Now is a good time to let her know that not every cryptocurrency is the same. They are thousands of different cryptocurrencies and many are designed for a very specific task. Others operate as a form of digital currency like Bitcoin.
META 1 Coin
The META 1 Coin is the first safehaven token to gain success in the market. META 1 eliminates many of the most pressing issues faced by crypto traders today. It’s stable thanks to the use of multi-gold-related assets as its backing. Additionally, the project introduces a host of special smart contracts to protect decentralization and prevent whale manipulation.
It’s easy to join the META 1 Coin network using the Onramper portal. This interface accepts over 50 different types of fiat currency and can convert the funds into META 1 Coin directly. The process is simple and quick. It requires no previous crypto experience and can save you on fees from other networks.
Granny Needs Some Satoshis
Now that you got your granny all hype about the crypto revolution, you should do her a solid and get her a couple of bucks in crypto. Projects like META 1 make it easy to convert your fiat to crypto in seconds. You may find that granny takes her spare time to become a trading expert. At the very least, she will appreciate your passion for these projects and the fact that you care enough to bring her into the decentralized economy with you.