How to get your Dad (or Mom) to buy Bitcoin?

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HideYourKeys:
Once you enter the world of Bitcoin, you feel, as often said in the field, ‘like falling down the rabbit hole,’ that you may have heard in a thousand podcasts, etc… Once inside, depending on the paths you follow, it’s not uncommon to start captivated by the shitcoins and promises of easy money, but when you’ve been in it longer, you spend hours studying it, etc… it’s hard not to be captivated by the potential of Bitcoin, once you understand it, even though it is common to give some concessions, or just trust some parts (we all delegate our trust to certain parties, I assume that most people haven’t compiled the software of their wallet, and reviewed every line of code).

The thing is, once you’re at that point, you find yourself wanting to share this excitement or knowledge with those closest to you, not to inflate the value of your holdings (unless you’re a cousin of an Arab sheikh, they’re not going to move the price), but because you truly believe in its transformative power for their financial future (they will remember you in the midst of a bull market, but it won’t be the right time either). I have to say, that I manage my own funds, and I do not want anyone's parents to feel obliged to buy bitcoin. I have summarize in this post, the main points I would address to try to teach some friend or relative bitcoin.

I want to avoid in any case, that sensation of being a boring crypto bro evangelist, you can’t force anyone to move their money in one way or another, the goal is to transmit some of the knowledge , in a synthetic way, so that ideas start to take shape, and at least the people who read this start asking themselves questions, or at least question how the current system works.

From now on, you can skip the reading, and we can discuss of the best methods to teach your friends or relatives how to get into Bitcoin. If you want to know the points I used, feel free to read it  :)

These points are a summarized version of the points I have discussed with friends or relatives, some sort of "main guidelines" to approach the topic (I have summarized the original post, after the feedback you gave me):

0. What is Bitcoin?

Let’s break down Bitcoin in simple terms. Forget what you know about Bitcoin or blockchains, such as “it has no value,” “it is bad for the environment,” or “it is pure speculation.” We’ll start with the basics.

Bitcoin is the first cryptocurrency, essentially digital money that exists only on the internet. Unlike physical coins or bills, you store Bitcoin in a digital wallet on your computer or phone. It allows you to send and receive value globally, provided both parties have internet access and a Bitcoin wallet. Bitcoin is unique because it eliminates the need for a “middle man” in transactions. It’s not controlled by any government or bank but managed by a network of computers worldwide. This network, or public digital infrastructure, enables direct transfers of value without intermediaries.

This infrastructure is public because anyone can join the network. It isn’t owned or controlled by any single entity. The network's computers, called nodes, verify transactions. Running a node is affordable and can be done discreetly at home with a budget computer. We have several public infrastructures for information (the internet) and physical items (roads, bridges). Previously, cash was our public infrastructure for value transfer, but it only worked face-to-face. For remote payments, banks handled transactions. With Bitcoin, no middleman is needed. You can send and receive bitcoin with minimal fees.

Nodes are crucial in the Bitcoin network. They record every transaction ever made, maintaining a ledger of who sent what to whom. Each node has a copy of this global ledger. Special nodes, called miners, compete to add new “blocks” of transactions to the blockchain. Miners collect valid transactions, group them, and add them to the ledger. They are rewarded with new bitcoins and transaction fees for this work. When we mention “Bitcoin,” we refer to the entire protocol and network. When we say “bitcoin,” we mean the coins transferred within the network. Miners’ rewards halve approximately every four years in an event called "halving," reducing the new bitcoins generated.

In conclusion, Bitcoin allows you to send value anywhere in the world quickly and securely without intermediaries. This is made possible by nodes and miners who maintain and secure the network through a competitive process known as mining. The more miners that participate, the more secure the network becomes, preventing any single entity from controlling it or engaging in malicious activities.


0.1 What is the Bitcoin blockchain?


A blockchain is a “chain of blocks” where each block contains specific information and a link to the previous block, forming a chronological sequence. This structure ensures data integrity and security. Each block has two main components: the block header and the list of transactions. The block header includes the previous block’s hash, a nonce, and various metadata such as the timestamp and network difficulty. The list of transactions records the transfer of Bitcoin between addresses within that block.

How Does a Block Get Added to the Blockchain? To add a block to the blockchain, miners gather pending transactions from the mempool, a temporary storage area for transactions waiting to be included in a block. Miners prioritize transactions with higher fees and create a block by combining these transactions with the previous block’s hash, a nonce, and other metadata.

The miner then calculates the block's hash using the SHA-256 hash function, the miner puts all the data together (the transactions and block header information concatenated) and applies the hash function to it. This hash function is a mathematical function that produces a fixed-length output. When performing this "hash", the result must meet the network’s difficulty requirements, meaning it needs to start with a certain number of zeros. If the hash does not meet the difficulty, the miner changes the nonce and tries again (repeats the hash function). This trial-and-error process continues until a valid hash is found.

For example, if the previous block hash is abc123, the timestamp is 1637284650, the nonce is 0, and the transactions are Tx1, Tx2, Tx3, the miner concatenates this data and applies the SHA-256 hash function. If the resulting hash doesn't start with the required number of zeros, the miner increments the nonce and tries again until finding a valid hash.

Once a valid hash is found, the miner broadcasts the new block to the network. Other nodes independently verify the block’s validity by checking the transactions, ensuring the hash meets the difficulty requirements, and confirming the block follows all protocol rules. Once verified, the block is added to the blockchain, and the miner receives a reward, consisting of newly generated bitcoins and transaction fees.

The difficulty (number of zeros at the start of a hash) of finding a valid hash adjusts every 2016 blocks (about every two weeks) to ensure blocks are mined approximately every 10 minutes. If the last 2016 blocks were mined too quickly, the difficulty increases; if too slowly, the difficulty decreases.

In essence, a blockchain is a secure, decentralized ledger where each block contains a list of transactions. Miners use computational power to solve complex puzzles (find valid hashes), adding new blocks to the chain. This process, known as mining, ensures the integrity and security of the Bitcoin network. The difficulty of mining adjusts periodically to maintain a consistent block creation rate.


0.2 What is a bitcoin wallet?

You might have heard the term "bitcoin wallet" before. Let’s break down what it really means and why it's essential in the Bitcoin system. One common question newcomers have is, "Where are my bitcoins?" It's crucial to know that bitcoins aren't stored in a physical location. Instead, Bitcoin ownership is represented by cryptographic keys. When you have bitcoin in a wallet on your phone, you are accessing your bitcoin through that wallet, but the bitcoins themselves aren't "inside" the wallet. If you delete the wallet app but still have your cryptographic keys, you can access your bitcoin from any other device or wallet.

Private Key: Your bitcoin ownership is tied to a private key, which is essentially a very long number. This number is randomly generated and can be as large as 1.1579 x 10^77, a quantity greater than the number of atoms in the observable universe. Your private key’s security comes from its randomness. When you create a wallet, this private key is often converted into a set of words to make it easier to remember. Each word corresponds to a number, and these numbers together form your private key. This key is your secret and allows you to control your bitcoin. It's vital to keep your private key secure because anyone with access to it can manage your bitcoin holdings. Think of your private key as your bank password.

Public Key and Address: From your private key, a public key and a corresponding bitcoin address are derived. The public key is the cryptographic counterpart to your private key, while the bitcoin address is a user-friendly version of the public key. People can send bitcoin to your address, but they cannot control or withdraw your funds without your private key.

Wallets: To interact with your bitcoin, you use a digital wallet, which manages your private key and allows you to send and receive bitcoin. Wallets come in various forms (software, hardware, paper...)  Each type of wallet offers different levels of security and convenience.



0.3 Could the blockchain be hacked?

The Bitcoin blockchain is designed to be highly secure and resistant to hacking or manipulation. You might wonder if a miner can modify transactions inside a block and then mine it. This is not possible due to several security mechanisms in place.

Every Bitcoin transaction is digitally signed with the sender's private key. This digital signature ensures that the transaction is valid and authorized by the owner of the Bitcoin address from which the funds originate. Modifying the amount of bitcoins sent would require a new digital signature, which could only be generated by the owner of the original address. Each transaction in Bitcoin is associated with a unique hash calculated from the transaction data. Any change in the transaction data, such as the amount of bitcoins sent, results in a completely different hash. Even a small change would alter its hash and make it invalid.

Imagine a transaction where person A sends 0.1 bitcoin to person B. It's like a sealed envelope with a message inside that says, "Send 0.1 bitcoin from A to B," signed by A. Only A can open it and change its content. When a miner receives this envelope, they first verify A's signature to ensure the transaction is legitimate. If the signature is valid, the miner adds the transaction to the next block in the blockchain. A miner cannot create a block that doesn't comply with the network's difficulty requirements because such a block would be rejected by the majority of nodes in the network. When a miner creates a new block, it must adhere to the consensus rules of the network, including the difficulty target set by the network protocol. If a miner creates a block without meeting the required difficulty level, it would be considered invalid by the rest of the network.

If a miner were to create an invalid block, it could potentially lead to a temporary fork in the blockchain. However, since the majority of nodes adhere to the consensus rules and reject invalid blocks, this fork would not be accepted by the broader network. Instead, it would be considered a temporary branch that will eventually be abandoned as nodes continue to build on the valid chain.

0.4 Why does Bitcoin have value, isn't it just hot air?

This is a common question about Bitcoin: "What gives it value? Isn't it just speculation?" Here's a simplified explanation:

Bitcoin's value comes from its underlying technology and decentralized nature. It operates on a global public network of nodes that facilitate transactions without intermediaries. This decentralization ensures security and prevents control by any single entity, enhancing its reliability as a store of value. Bitcoin's decentralized network makes it resistant to manipulation and centralized control by institutions or governments, increasing its trustworthiness.

Unlike traditional assets, Bitcoin isn't someone else's debt, reducing counterparty risk. It can serve as a medium of exchange, store of value, and even a unit of account. In countries with severe currency depreciation, Bitcoin offers a viable solution. Over time, Bitcoin has gained acceptance and recognition from institutions and the general public. This adoption by companies, investors, and individual users has bolstered its legitimacy and value.

Bitcoin allows easy monitoring and verification of the amounts held in specific wallets. For instance, if a wallet belongs to a bank or government, anyone can verify its balance, providing a transparency advantage over gold and central bank reserves. Bitcoin's digital nature allows for easy verification and real-time auditability, providing greater transparency compared to physical gold storage, which is often subject to doubts and rumors (like painted gold bars, or empty vaults). It's also highly divisible, easily transferable, and secure against counterfeiting.

While Bitcoin can't be physically touched and lacks tangible or governmental backing, these characteristics don't necessarily diminish its value. Critics argue this intangibility makes it less reliable as money or a store of value in the long run. However, the existence of a transparent and decentralized network could solve many issues related to trust between countries and institutional transparency.

1. Bitcoin to protect yourself against Inflation?

Fiat currencies are prone to inflation, a fact well known to those who lived in the Western world before the 2000s (and even more in the Global South). However, since the 2008 economic crisis, people have come to accept fiat money (dollars/euros) as a stable base unit. This perception was reinforced by low inflation, even deflation, during the 2010s. Yet, in the past 2-3 years, awareness of currency depreciation has grown, evident in the soaring prices of houses compared to decades ago. Despite this, many people don't fully understand the root cause, often blaming greedy businessmen or speculators.

The real issue lies in the expansive monetary policies and unchecked money printing by central banks, leading to the constant erosion of purchasing power. However, people tend to recognize this only when it becomes extreme and prolonged, as seen in Argentina. The turning point in this monetary narrative was in 1971 when President Nixon ended the dollar-gold convertibility, effectively halting the gold standard. Surprisingly, some still believe their money is backed by gold, but today's money is fundamentally debt-based...

Before 1971, currencies like the dollar were backed by gold, providing stability and confidence in the financial system. But in August 1971, Nixon announced the end of the Bretton Woods system, shifting to a fiat currency system. This new system relies solely on trust in the issuing government, often humorously referred to as being backed by "petrodollars or aircraft carriers."

This shift allowed governments to print money almost limitlessly, leading to significant inflation. Money transformed from a representation of tangible value to debt money, where most currency is created through bank debt, loans, and credits. This has fueled a cycle of increasing public and private debt and economic booms and busts. In contrast, Bitcoin offers a limited supply of 21 million coins, ensuring scarcity and protecting against inflation. This makes Bitcoin an attractive option for preserving value over time, offering an alternative to the depreciating value of fiat currencies.


1.1 How do we know there are only 21 million bitcoins, and if they decide to print more tomorrow, or change the code?

The total amount of Bitcoin that can be created is capped at 21 million units, a limit set by the Bitcoin protocol and encoded in its software from the outset. This cap is approached asymptotically, meaning there's no explicit variable enforcing it. The 21 million limit is thought to have been chosen to create a scarce, gold-like asset to preserve long-term value, although the exact reasoning of Bitcoin's creator, Satoshi Nakamoto, remains unknown.

While it is theoretically possible to alter this limit—since Bitcoin is an open-source protocol—such a change would require convincing the majority of the network's hundreds of thousands of globally distributed nodes to accept it. This consensus is highly unlikely. If a change were attempted without broad agreement, it would result in a Bitcoin fork, creating a parallel chain that would likely hold little to no interest for the wider community. Bitcoin's decentralized nature, with nodes and miners spread worldwide, makes significant protocol changes challenging. Any modification, including changing the 21 million cap, would need to be accepted by the majority of the network participants. Given the strong support for Bitcoin's built-in scarcity and the difficulty of achieving widespread consensus, altering the 21 million limit is extremely improbable.

2. Financial Sovereignty and Confiscation Resistance

The concept of financial sovereignty is redefined in the context of Bitcoin due to its unique properties. Traditionally, asset custody and transaction execution are controlled by intermediaries such as banks or governments. With Bitcoin, individuals gain unprecedented control over their financial assets. You can create a Bitcoin wallet and send or receive funds with transactions confirmed by the network's consensus, eliminating the need for a central authority. This allows individuals to act as their own banks, storing, sending, and receiving funds autonomously without needing third-party permission.

This financial autonomy is especially significant in regions with low trust in traditional banking systems or where capital restrictions exist. Bitcoin provides a secure and accessible alternative for storing and transferring value, offering protection against asset confiscation by authoritarian governments or irresponsible monetary policies. Even in the Western world, where banking issues seem less pressing, the potential for future problems underscores the need for preemptive action. Moreover, Bitcoin's global accessibility and lack of geographic restrictions promote financial inclusion and democratize access to financial services, which can be particularly impactful in regions like Africa, where banking is less accessible.

Bitcoin's resistance to confiscation by third parties is another crucial feature. Financial assets stored in bank accounts or with intermediaries are at risk of confiscation by governments, financial institutions, or creditors. In contrast, Bitcoin users control their funds and the private keys needed to access them. If you self-custody your keys, no one needs to know about your wallet, your control over the keys, or your ownership of the funds.

Bitcoin transactions are recorded immutably on the blockchain and are irreversible once confirmed, meaning they cannot be altered or reversed by third parties. The high cost of mining a block and the exponential cost of undoing transactions in past blocks ensure their immutability, usually considered secure after six confirmations. In summary, Bitcoin offers a secure, confiscation-resistant way to store and transfer value, protecting assets from unwanted external interference.

2.1 What if countries ban it?

A common criticism is that Bitcoin will be banned by nation-states. Critics argue that if several countries banned Bitcoin, it could discourage its adoption and use in those regions. Legal restrictions on owning, trading, or using Bitcoin could significantly reduce its utility and liquidity.

Historically, such bans are possible, as demonstrated by the Emergency Banking Act of 1933 in the U.S., which prohibited private ownership of gold. However, Bitcoin differs because it allows for anonymous wallet creation and transactions within a circular economy, making it difficult to track and enforce bans. While governments will try to identify and regulate wallets and transactions, Bitcoin's decentralized nature makes it challenging to control comprehensively. Banning Bitcoin poses significant technical challenges due to its decentralized and censorship-resistant nature. Even if governments block access to exchanges and related websites, users can still access the network using privacy technologies and censorship evasion tools. A ban in some countries wouldn’t impact the global Bitcoin network, which operates without a central point of control.

Game theory provides insight into the dynamics between Bitcoin and countries considering prohibition or adoption. Some countries may see Bitcoin as a strategic opportunity to enhance their global economic position. Pro-Bitcoin countries could attract investments in blockchain technology and fintech, foster financial innovation, and lead the digital economy, as seen in the Middle East and El Salvador. Conversely, countries considering banning Bitcoin may do so to maintain financial stability, combat money laundering and terrorism financing, or protect traditional financial systems. However, this could lead to the flight of talent and capital to more Bitcoin-friendly jurisdictions, like Dubai.

In game theory terms, the interaction between Bitcoin and countries is a non-zero-sum game. Countries adopting pro-Bitcoin policies can gain competitive advantages and economic opportunities, while those banning it may face additional economic challenges. Ultimately, the balance between Bitcoin adoption and prohibition will depend on each country's strategies and broader geopolitical dynamics. However, there are no strong incentives for a global ban, and it may be wise to own some Bitcoin as a hedge against potential economic instability.

3. Mining, the Solution to the World’s Energy

Mainstream opinion often views Bitcoin mining as highly energy-consuming and polluting. However, the reality is quite different. Bitcoin mining offers several advantages for balancing energy consumption and optimizing energy use.

Bitcoin mining can stabilize energy consumption by providing a constant demand for electricity, as the mining computers continuously calculate hashes. This activity can absorb excess energy during times of low demand, such as at night or when renewable energy sources generate more power than needed. In places like Texas, miners help balance the power grid by turning on and off based on demand.

Additionally, cryptocurrency mining acts as a buyer of last resort for surplus energy, especially in regions with abundant but underutilized renewable energy. This prevents energy waste and provides energy producers with an additional market, enhancing resource utilization. In areas of oil and gas extraction, associated natural gas (flare gas) is often burned due to transportation constraints. Bitcoin mining can use this gas to generate electricity for mining operations, turning a waste product into a valuable resource.

In summary, Bitcoin mining helps avoid energy waste by using surplus or otherwise wasted energy. By leveraging renewable energy, surplus energy, and underutilized resources, Bitcoin mining promotes greater energy efficiency and resource utilization. It ensures continuous demand, making energy projects more viable and installations profitable in less time. Bitcoin mining is profitable when energy costs are very low, around 4 cents per kWh, thus optimizing the system and reducing waste without taking energy away from the population.


4. Are we still early?

Some people think the Bitcoin train has already left the station. While it was more advantageous to get into Bitcoin years ago, widespread adoption is still far off. As governments and institutions secure their shares, it's a good time for individuals to secure theirs too. It's not too late to buy Bitcoin; it remains an emerging technology with significant long-term growth potential. Despite past price fluctuations, its adoption and acceptance are expanding worldwide. Bitcoin's scarcity, decentralized nature, and cryptographic security make it attractive as a store of value and a digital medium of exchange.

There's not enough Bitcoin for everyone. Each Bitcoin is divisible into 100 million satoshis, its smallest unit. If Bitcoin were distributed evenly among the world's 6 billion adults, each person would get around 350,000 satoshis. This is hypothetical since the actual distribution is far from equitable, with some people holding thousands of Bitcoins and many lost forever. A substantial amount might be around 100,000 satoshis per person.

Transaction fees, though not extremely high, could pose a challenge if Bitcoin's adoption becomes widespread. Custodial solutions, like Bitcoin banks, might become necessary, holding users' Bitcoins and managing transactions on other layers, like Lightning or Liquid. This could centralize Bitcoin holdings with institutions, banks, and governments. Currently, individuals can still hold Bitcoin under their own custody, a privilege that might not be possible in the future.

Rumors suggest a "Bitcoin gold rush era" started in January 2024, lasting until around November 2034. By 2035, 99% of all Bitcoins will be mined, marking the onset of the 'growth phase.' With 93.5% of the total 21 million Bitcoins already mined, around 6.5% remain to be mined in the next decade. The opportunity to own Bitcoin is still there, but it's narrowing every day.


4.1 mySpace vs. Facebook

Another common argument against Bitcoin is the "MySpace vs. Facebook" analogy. Critics suggest that, like MySpace was overtaken by Facebook, a better cryptocurrency could eventually replace Bitcoin. We believe this analogy is flawed for several reasons.

Firstly, Bitcoin is a pioneer in the cryptocurrency space, created in 2008, and has shown remarkable resilience and durability. It has faced and overcome many technical, regulatory, and competitive challenges, establishing itself as a reliable store of value and medium of exchange. Bitcoin's decentralized and spontaneous emergence means it lacks the centralized control and pre-mining incentives seen in many newer cryptocurrencies.

Secondly, despite being the first cryptocurrency, Bitcoin is continuously evolving. Innovations such as the Lightning Network, Taproot, and other layers like Liquid enhance transaction speed, privacy, scalability, and overall functionality. Bitcoin focuses on being robust and secure, rather than adding unnecessary complexities that could compromise its stability.

Bitcoin's decentralized network and strong cryptographic security make it the most secure and widely adopted cryptocurrency in the world. This high level of security and participation makes it resistant to censorship and manipulation. Other cryptocurrencies, like Ethereum, often depend on fiat money and proof-of-stake systems, which reintroduce centralization risks. Bitcoin's launch in 2009 was open and decentralized, with no pre-mining. In contrast, Ethereum's launch involved a token presale, leading to an initial supply of Ether distributed among early investors, resembling a form of pre-mining.

Bitcoin was designed as a decentralized digital currency and a peer-to-peer payment system, focusing on scarcity and resistance to censorship. Its simplicity is its strength, ensuring stability. Ethereum, designed for smart contracts and decentralized applications, emphasizes flexibility and programmability, but this complexity has led to issues like hacks and a chain split. We acknowledge that future cryptocurrencies may offer utility, but Bitcoin's unique genesis and the conditions of its creation are irreplicable. Given its widespread adoption and network effects, the "MySpace vs. Facebook" scenario seems unlikely for Bitcoin. While other cryptocurrencies may offer investment opportunities, Bitcoin's role as a digital commodity and a secure store of value is unmatched.

5. Governments are averse to unpopular decisions

Another reason to buy Bitcoin lies in the systemic incentives that push its price higher. The only way Bitcoin's price would decrease is if governments and politicians started acting in the citizens' best interests. If you doubt this will happen, as we do, it reinforces the bullish case for Bitcoin.

In our debt-based monetary system, countries are increasingly indebted. To manage this debt, governments often "bleed" the population, with inflation being the preferred method (which also pushes Bitcoin higher). Governments prefer inflation over raising taxes for several reasons. Raising taxes is unpopular and can lead to voter backlash. Inflation, however, is less visible and more abstract, allowing politicians to avoid direct responsibility and negative political repercussions.

Inflation helps reduce the government's debt burden in real terms. As inflation rises, the real value of debt decreases, and government tax revenues increase nominally, benefiting indebted governments. Raising taxes, in contrast, can disincentivize investment and economic activity, and generate taxpayer resentment. While inflation erodes fiat currency purchasing power, causes regressive wealth redistribution, and creates economic uncertainty, the frequent changes in government lead to a lack of long-term accountability in managing inflation and other economic policies. Every few years, the problem becomes the next administration’s responsibility, edging us closer to collapse.

Bitcoin can serve as a lifeboat. You don’t need to be fully invested in it, but owning some can be less risky than owning none, providing a hedge against systemic economic failures.

6. The real Bitcoin risks...

The Bitcoin blockchain is designed to be highly secure and resistant to hacking or manipulation, but it's not perfect. While the blockchain itself has never been hacked, there are potential vulnerabilities in the broader Bitcoin ecosystem. Here are some real risks and their likelihood of materializing:

51% Attack: This occurs when a single entity controls more than 50% of the Bitcoin network's computational power, potentially manipulating transactions, double-spending coins, or preventing new transactions. Although theoretically possible, achieving a 51% attack requires immense computational power and resources, making it highly impractical and costly.

Mining Pool Centralization: Concentration of mining power in a few large pools could lead to centralization issues. Mining pools combine resources from multiple miners to increase the chances of solving blocks collectively, offering more consistent rewards than solo mining. However, if a small number of pools control a majority of the hash rate, they could collude to manipulate transactions. The Bitcoin community actively monitors and works to maintain a decentralized mining ecosystem, with initiatives like Ocean Pool addressing transparency and centralization issues.

Software Bugs or Exploits:Like any complex software, the Bitcoin protocol may contain bugs or vulnerabilities. However, Bitcoin's open-source nature allows for peer review and continuous code improvement, promptly addressing potential security issues. Changes to the Bitcoin code undergo a rigorous process, often taking years to implement, ensuring thorough vetting and testing to maintain network security and stability.

Hard Forks: Contentious issues within the community can lead to hard forks, resulting in two separate blockchains. Bitcoin holders before a fork retain both the original Bitcoin (BTC) and the new forked cryptocurrency. This situation presents an opportunity for investors, as they maintain exposure to the Bitcoin ecosystem without additional risk. The Bitcoin Cash (BCH) fork in 2017, following a debate over block size limits and scalability, is a notable example. Holders of Bitcoin at the time received an equivalent amount of Bitcoin Cash, doubling their cryptocurrency holdings. However, Bitcoin Cash's adoption and value have been inconsistent compared to Bitcoin, with its market capitalization on a downward trend for years.

Despite these theoretical risks, the Bitcoin network has proven highly resilient and secure over its more than a decade of existence. Its decentralized nature and cryptographic security measures make it one of the most secure systems for transferring and storing value in the digital realm.


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Those are the main points I have used over time to "orange-pill" my friends and relatives, we can discuss if you find them useful, or if you have any other ones.

I have compiled them, and created a free PDF so I can gift it to my friends, I have called it "How to get you to understand Bitcoin in less than 1 hour"















Frankolala:
How do you want your mom and dad to understand all these wall of text that you wrote. It will be boring to them and that alone can discourage anyone from listening to you the second time. You must not convince or force anyone to buy bitcoin, so that you will not be held responsible for their actions, when the price of bitcoin goes south or if anything happen to their bitcoin investment.

Just tell whoever that you want to introduce to bitcoin, the basic concept of bitcoin that it is worth investing in bitcoin as an investment for a long time or to use it as their savings because it is an hedge against inflation, instead of keeping their savings in banks that will depreciate overtime. They should also use the amount of money that they can afford to lose. Whoever is interested will make research and come back to you showing interest, then you can throw more light on bitcoin the second time.

kryptqnick:
Op, your text is so long that it'll discourage people from reading it and taking part in a meaningful discussion, You should at least add a TL;DR for this.
If I got it right, TL;DR: Even when you're excited about Bitcoin, those close to you might not care, so if you want to convince them to invest, you should explain what Bitcoin is, what gives it value (decentralization), fixed supply as a hedge against inflation, self-custody of coins, mining as a buyer of unused energy surplus, and that it's not too late to invest.

Honestly, I don't know anyone inquisitive enough to listen to all that information about Bitcoin, especially if they aren't really interested in investing. I think that, overall, it's not a good practice to convince others to invest in certain things. If you want your relatives to get into Bitcoin, you can simply gift them a small amount of it, which might encourage them to learn more.

pinggoki:
You have to know your parents to be able to pull this off because if they're a close minded kind of people that don't easily embrace new technology then you're basically selling water to a fish or air to a bird. Make sure that they want to and they've got the curiosity to invest in bitcoin, they don't like the idea that their retirement money is going to go down the drain suddenly, remember that bitcoin is a volatile asset and you don't want them to feel the shock without a warning because once they get their first bear market or price dump, they're going to be really susceptible to panic and I don't think that you'd want that for them plus you're going to be getting all the blame if they decide that it's bad for them. Don't explain the technical side to them especially if they don't have a tech background, the best approach for them is to teach them the most basic way that you can teach bitcoin, think of explaining bitcoin to children.

Queentoshi:
Quote from: HideYourKeys on May 04, 2024, 07:08:32 AM

Convincing someone to invest in Bitcoin, like your dad or mom, requires understanding his concerns and interests. Highlight its potential for high returns, its increasing adoption by institutions, and its role as a hedge against inflation, use the sections above to support your thesis. Emphasize the security measures in place and educate him about the technology behind it. Start with small investments to mitigate risk and offer to assist him with the process. Ultimately, approach the conversation with patience, respect, and a willingness to address his doubts or questions.

While you highlight all the good of bitcoins when invested in, you need not spare any detail about the risk associated with it. For example, some of the people who were introduced to bitcoins just before the halving, and were not told about the potential for investments to dip as well are very disappointed now because they were not properly told.
Tell your dad and mum that bitcoins can go down as it is expected to go up, so that their blood pressure do not rise if after they invest and bitcoins start performing badly. You know they are old and can have health challenges making them prone to cardiac arrest.

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