Explaining Cryptocurrency in Five Stages: From Kids to Elderly

Explaining Cryptocurrency in Five Stages: From Kids to Elderly

Explaining cryptocurrency to everybody based on their level of understanding is very important

Social media platforms and online pages are the best information provider on cryptocurrency. Everything starting from simple rules to follow while investing to everyday price swings is available on the internet. But moving out of the internet information bubble, commoners on the streets have a different view on digital currency. To many, bitcoin is the first and the last thing that comes to their mind when we talk about cryptocurrencies. Therefore, explaining cryptocurrency to everybody based on their level of understanding is very important.

The cryptocurrency hype came into existence at the beginning of 2021. Since then, many digital currencies including bitcoin, dogecoin, ethereum, etc have registered record price spikes as well as falls. Besides, crypto enthusiasts like Elon Musk, CEO of Tesla, have also put out their opinions on the web about cryptocurrency. Many companies like Amazon that are driving the eCommerce wave are considering cryptocurrency payments in their platforms. Despite the diverse options we have in the digital currency market, people are still convinced that bitcoin or ethereum and even less the laughable dogecoin has chances to bang millions. By the end of 2020, crypto investors were worn out by the fact that cryptocurrencies didn't fly as high as they expected. At that stage, many have opted out of the digital currency race, only to blame themselves for their unplanned move. We don't argue here whether investing in cryptocurrency is a good idea or not, but one thing to keep in mind before jumping into the digital currency sphere is that anybody should at least have basic knowledge of cryptocurrency and its volatility. Explaining cryptocurrency to people of different stages from kids to adults based on their understanding can help streamline the adoption.

Kids

While explaining cryptocurrency to kids, we should keep in mind that some might know the basics of digital currency while others might be completely new to the topic. Therefore, we need to start from scratch. Cryptocurrency is a type of digital coin that works as digital money in the online medium. Cryptocurrencies are created using a method called cryptography after which it gets ready for transactions. One of the famous cryptocurrencies that everybody is familiar with is bitcoin. Bitcoin was the first cryptocurrency that came into the digital currency market. Since its inception, millions of people from across the globe have invested in the currency. Many have even yielded big benefits. They are often called 'bitcoin millionaires.' Cryptocurrencies function in a decentralized model, which means they aren't controlled by one person or a government.

Adults

The adult population is always at the forefront of every trend. In the 1990s, the adults of that time started using the internet immensely. Thirty years from then, it is the time for cryptocurrencies to drive the wave among adults. To explain cryptocurrency to adults and make them invest in one, you need to start from basics and go all the way to touch critical points. Cryptocurrencies are digital currencies that exist only in computers. They are passed on from person to person online through digital currency transactions. We have various cryptocurrency apps and platforms that have buying and transaction options. While some countries have not put a bar on cryptocurrency trading, some others are very strict and have banned cryptocurrency usage inside the nation. Some other countries like India are still deciding on what to do with cryptocurrencies. Recently, the bitcoin price went up the rocket and reached a record number. But soon, it was near a worse death cross. Fortunately, the cryptocurrency is doing moderate now.

Experts

Since experts are already well-versed in the digital currency market, there is nothing basic they need to know. Experts mostly invest in three major cryptocurrencies namely bitcoin, dogecoin, and ethereum. While bitcoin is the parent coin, ethereum is an altcoin, something like a spinoff from the core substance. So far bitcoin was performing very well in the market. But recent updates suggest that altcoins are slowly taking over the bitcoin investors and sooner or later, they will overtake the market capitalization of bitcoin. On the other hand, dogecoin emerged as a meme coin after a Shinu Ibu dog went viral on the internet. Although its root is funny, many people see doge as an important source of investment.

Senior Citizens

Many Millenials often engage in the so-called 'bitcoin' conversation. Therefore, elderly people like grandparents in our family must've already heard the word cryptocurrency quite a lot. Getting the wind of cryptocurrency is different from understanding it. While explaining digital currency to senior citizens, you can start from blockchain, the disruptive technology that acts as the skeleton to cryptocurrency making and transactions. Blockchain is a database or a ledger that functions as a record book for digital currency transactions. Cryptocurrencies are digital currencies that function on blockchain technology. Cryptocurrency has value because people believe it does. You can even make them understand the inner complexity of bitcoin or any other currency by asking them to play a quick game.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

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