Here’s How You Talk About Cryptocurrency To Your Family
This helps you give the family an idea of the current crypto world. Here we explain how it is done step by step.
Is Your Family Interested In Cryptocurrency?
Imagine you’re sitting down to a nice meal and your aunt is always one step ahead mentioning she wanted to start investing in Bitcoin. That’s when you freeze, a drip of gravy plopping off the ladle and it’s your time to shine. So is it clear? Firstly it is that you know that the state of crypto is very good and has been a banner year for cryptocurrencies. It is now that Bitcoin rose from $ 738 a year ago to $ 8220 as of this year. In case you have invested $ 7000 in Bitcoin in November 2016, there has been rounding into six figures by now as the same can be said about Ethereum as it jumped from $ 9 in 2016 to $ 350 in 2017.
Will this be sufficient enough to make your aunt want to sell her summer home and dump it all into blockchain? Is it that she should? It may be probably not.
This is why interestingly the price has risen and the fluctuations have become more manageable, talk of crypto investing has died down. As there are many reasons, where the primary one is that the crypto world loves to keep quiet and take profits on the sly meaning if you’re planning on getting in you’d best act decisively. Thereby you can dabble sure in case you want to see real returns and do not expect things to fall back down to $ 3,000 or even $ 5,000. This is where we’re almost at a set point for the next few months and barring flash crashes not expecting much to change barring some wild SEC regulation.
Hereby we’ve entered a strange era in cryptocurrencies as the technology is mature enough that anyone can implement a blockchain solution from small fintechs to MasterCard as not yet trusted enough to become a true store of general value and however the recent Segwit2x failure has thereby shown the world that the rulers of the blockchain namely the whales who have millions in crypto and the miners who want BTC to avoid becoming a utility and act more as a commodity. Therefore it, in turn, doesn’t want to turn the blockchain into a credit card transaction service but instead wants a way to store and transfer massive hordes of cash electronically.
How Is The ICOs Done?
It has been noted on the other hand that Ethereum will be the utility as price should rise and will probably fall drastically once the first of the poorly orchestrated ICOs fail as it rises again once the first true ICOs as the true token sales approach this with an eye on monetary management vs. get rich quick schemes to begin rolling out. While this is sure to happen in the first and second quarter how do you pick a good token sale? There is right now that you can’t as the best bet is to buy Ether on a dip and avoid the weirder token solution coming over the pike as the tokens are in an opinion the future and just not in their current form.
It is to state that ultimately the Ethereum network has grown to handle more transactions as the Bitcoin will remain the same, a safeguard and bulwark for those who don’t want to keep their gold doubloons in a safe under the floor. And is it that your aunt is till hounding you for advice? And if it is she owns she should hold. In case she doesn’t own, she might as well give it a try as make her a Coinbase account and buy a few hundred dollars’ worth of BTC and Ether letting her watch it move and begin to acclimate herself to the news cycle and more importantly the hype cycle. Then remember results may vary and this does not constitute investment advice any more than saying that she should try learning to use Linux. It may make a nice salary when it gets popular back in 1992.
This is where cryptocurrencies are entering the mainstream with a few problems with its current popularity as the primary one being that people are entering the market without understanding it. As it is fine, this has been practiced for decades on the NASDAQ with untrained traders making the gut-based guesses on complex companies but in crypto, the technology is wedded to the price thereby misunderstanding the news coming out of services like CoinDesk getting you into a lot of trouble. This is to a degree the crypto loyalists loving the fact that their world is inscrutable. Thereafter to another degree, this makes for some nail-biting times.
Ultimately tell your family that cryptocurrency is eventually replacing the way we send money from computer to computer and telling them that there are a lot of smart people doing that which is a lot of cool stuff where that was impossible even a few years ago. Well, it is better to tell them that no, the FBI won't arrest them for trading in Bitcoin and that it can’t be used very effectively to call in hits or buy kilos of cocaine online. It is then that this is all a gamble but it’s a gamble that mixes the high stakes world of Wall Street with the high tech world of command lines, where it is complex fascinating and fun as it becomes anything less than that then it’s probably time to cash out.