Whenever I had a conversation about Bitcoin with my family, they ended up either disagreeing with me or relating it to a past investing experience they had in the past. I have repeatedly failed when trying to explain the technology behind and why many people regard it as the gold of the current generation, so what would be the best approach to actually get them to listen and take it as a serious investment opportunity?
First question: but where will all my money go?
A good starting point is to specifically mention that their money is not gone and it is a similar situation to investing in a stock – the price will go up, will go down, might moon in the long-term and you can take your money out whenever you want to. Make sure you stress this last point, as this was one of the biggest challenges I faced – “what if I want to take my money out but I can’t?”.
Second question: where is my bitcoin?
This was not such a serious issue but I still had to explain that Bitcoin is not something that you can hold physically like banknotes and change. In the same way you have a physical wallet for your banknotes and change, you have a digital wallet for your digital banknotes, your digital Bitcoin.
Third question: why would I put my money in Bitcoin and not in properties?
This is a tough one. The parents of our generation still prefer investments which first and foremost have to be safe, even if the returns are much smaller compared to the risk ratio. It will take a lot of explaining to convince your parents that Bitcoin is a safer investment than properties, because, technically speaking, it probably isn’t. However, you need to milk the “return” cow as much as you can, by giving them examples of how the price changed and what the future predictions are. One of the best example is Bitcoin was around $1,000 at the beginning of 2017 and is currently sitting at $10,000 with one month to go in 2017 – good luck finding a property that will give you a 10x return in 11 months!
Fourth question: how am I going to spend my Bitcoin?
This is a fair one, because unless you really want to spend your Bitcoin in a shop just for the sake of it, you will have a hard time finding stores that actually accept Bitcoin; and even if they do, it’s quite likely that you will prefer to spend cash and keep the Bitcoin as it will probably increase in value shortly after. However, you can always argue that they don’t have to spend the Bitcoin, they can just use Bitcoin as a means of increasing their return – buy when it’s cheap and sell it when it’s expensive!
It will be difficult to change their mind – I haven’t managed to do it and I have had several attempts. As the quote goes – “Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better.”.
Photo taken from Mashable