Diwali is this Sunday, and someone at the family table will ask about Bitcoin. Here is how I explain it in five lines, without a single technical word.
1. What it is: money that lives on the internet, with no bank or government in the middle. You send it like a WhatsApp message, and it arrives in minutes anywhere in the world.
2. Why it has value: there will only ever be 21 million. Nobody can print more. Compare that with rupees or dollars, where more are printed every year.
3. Who controls it: nobody and everybody. Thousands of computers around the world keep the same record, so no single person can change it or switch it off.
4. Why the price moves so much: it is not even 18 years old and the whole world is still deciding what it is worth. Gold took thousands of years. This is the loud part of that process.
5. What can go wrong: you lose your password and the coins are gone forever. You keep them on an exchange and the exchange fails. Or you buy at the top because your cousin did. The technology is safe. People are the risk.
Then the question that always follows: should I buy? My answer at every dinner: only an amount you can forget about for five years, after the emergency fund and the insurance are done.
Save this for Sunday. How do you explain Bitcoin at home? Or do you avoid the topic?
Education only, not financial advice.
$BTC #Bitcoin #CryptoEducation #Diwali
1. What it is: money that lives on the internet, with no bank or government in the middle. You send it like a WhatsApp message, and it arrives in minutes anywhere in the world.
2. Why it has value: there will only ever be 21 million. Nobody can print more. Compare that with rupees or dollars, where more are printed every year.
3. Who controls it: nobody and everybody. Thousands of computers around the world keep the same record, so no single person can change it or switch it off.
4. Why the price moves so much: it is not even 18 years old and the whole world is still deciding what it is worth. Gold took thousands of years. This is the loud part of that process.
5. What can go wrong: you lose your password and the coins are gone forever. You keep them on an exchange and the exchange fails. Or you buy at the top because your cousin did. The technology is safe. People are the risk.
Then the question that always follows: should I buy? My answer at every dinner: only an amount you can forget about for five years, after the emergency fund and the insurance are done.
Save this for Sunday. How do you explain Bitcoin at home? Or do you avoid the topic?
Education only, not financial advice.
$BTC #Bitcoin #CryptoEducation #Diwali
