Father's Day is a great opportunity for us to talk to our dads about what we have been up to in our lives. For many of us that are obsessed with crypto, it is quite a difficult topic to explain.
"What exactly is blockchain? What is cryptocurrency?"
It is not difficult to explain these questions from our dads, as long as two rules are followed.
Rule 1: Try to use analogies that your dad can understand.
Rule 2: Don't explain too much about the technical principles, focus on what blockchain and crypto can do.
Here are some examples you can refer to:
How is blockchain changing the world of finance?
All financial actions, such as who sends money/transfers money to whom and buys a few shares, require [bookkeeping].
In the past, bookkeeping was done by financial institutions like banks. They held the power to set the rules, such as how to invest, the amount, and other thresholds.
Several questions arose from this: 1) Can the "banks" be fully trusted to keep the books?; 2) Will the loss of competition among the rule-makers lead to inefficiency?; 3) Will a series of thresholds in the rules keep many people from being wealthy?
Blockchain can solve precisely the above problems.
- Blockchain can be a good solution to the problem of trust in finance. Blockchain can allow more computers to be networked to keep accounts. In a village, for example, only the village head can keep accounts, but now each villager is given a small book, and if the village head wants to amend the book, then all of them have to amend it together to be recognized. As such, no cheating is allowed.
- Blockchain can change the problem of existing financial inefficiency. Users can be matched with the right traders in the shortest possible time, which is much more efficient. The price is also better as there are more choices available.
- Blockchain can effectively reduce the threshold of financial participation. In the past, you needed to run to a bank or securities company to open an account, fill out a form, make copies of information, do authentication, open an online service, and so on. However, in the world of blockchain, all you need is a computer and you can participate in many types of investment without leaving your home. There is also no bottom limit on how much you will have to invest.
In the blockchain, the system is open and there is no entry for investment. There are opportunities for everyone and they can get their hands on investments like Bitcoin.
Why is Bitcoin an investment?
Bitcoin exists only in the online world, which is why some refer to it as a virtual currency and is the most iconic cryptocurrency in the world. The blockchain algorithm ensures that its production is limited and decreases year by year like physical gold. The production of cryptocurrency is not manipulated by any one country, company, or organization. It also will not be devalued by over-issuance like physical banknotes.
People believe in the scarcity and practical value of gold and are willing to accept it to pay their salaries, and it thus has the properties of a currency. Bitcoins are also algorithmically set up to be issued only to computers that are involved in labor - bookkeeping. Bitcoin can therefore also be recognized as a currency. That is why Bitcoin is called digital gold.
What is better about Bitcoin than gold is that you no longer need to buy, carry and store a physical bar of gold. You are also not limited to buying a full coin to start with, as you are with physical currency. You can instead invest in smaller units, such as 0.00001 bitcoins.
Invest, store and enjoy the new conversations with your dad!
Bitcoin is one of the best-performing asset classes to date. With a cold wallet like ELLIPAL, you can smoothly teach your dad to store and trade bitcoins in minutes. You will probably be celebrating with your dad the next time his Bitcoin rises in price again while being kept safe in the ELLIPAL Cold Wallet!