Can you explain cryptocurrency and blockchain so my grandmother could understand it?

[rachel776]

[abc3643]

Not really; I can't. I won't touch the shit...(*)

HOWEVER, I have a WSJ subscription and they do a pretty good job of explaining this stuff.

Here's an explanation of Bitcoin back in April 2013. Since cryptocurrency was new then, the WSJ felt compelled to explained to its readership (mostly wealthy businessmen and investors).

https://www.wsj.com/video/what-a-bitcoin/D79FF38C-7816-435B-B3B0-F9B177BCA0A8

Here's another one by Joanna Stern (she's excellent) about NFTs made 3 years ago and does a very good job at explaining blockchain, etc.

https://www.wsj.com/video/series/joanna-stern-personal-technology/nfts-crypto-wallets-and-more-explained-by-putting-my-son-art-on-the-blockchain/202C842A-DCB5-4B1E-BB2E-6AB63CF36AD4

(*) Notice what Stern's mother says in Stern's video (start around 6:00): "Why would I want this?"

Grandma's smart. Like Warren Buffett... It's all bullshit... and, some cryptobros may not like this, but it can all go *POOF!* courtesy of the Coinage Power Clause in the US Constitution:

https://www.law.cornell.edu/constitution-conan/article-1/section-8/clause-5/coinage-power

Article I, Section 8, Clause 5:

[The Congress shall have Power. . . ] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; . . .

So, if Congress wants crypto to go away in the United States, they can make it unlawful to use and the value goes *POOF!*

[abc3643]

This one, also from 3 years ago - practically the same time as Joanna Stern's video - was behind a paywall, so I am gifting the article.

www.wsj.com/.../what-is-cryptocurrency-how-does-it-work-11638386626

[abc3643]

This is the original white paper explaining Bitcoin. I believe it is considered as the foundational paper for cryptocurrencies.
https://nakamotoinstitute.org/library/bitcoin/

[lightbulb27]

granny, see the chain around your neck? Each link becomes a transaction and the chain grows forever.. called a block chain. Thing is, it's all mashed up like it was heated, but there's special keys to find your transaction and get it out, the rest of it is a mashed ball. the bigger it gets, the more secure it is because takes more computer power to unravel and find the transaction in it. It's global too, anyone can put transaction in it. So your transactions are safe. you can buy and sell your link and split it into smaller links... all mashed upin there, and very secure. noone in the world can hack into it and get it out, but you can.

So take all your money and buy bitcoin granny... like shoulda done 8 years ago. ok never mind that, lets mow lawns and do gardening... the $ we make we buy bitcoin..., and make me the executor with your backup passwords. So I won't be poor.

[hahahmm]

Wouldn't try to explain blockchain at all. Would say:

Pretend money that exists in big computer systems owned by other people & that was created because of a fear that other "other people" had too much control of government recognized money. Luckily there are enough suckers who believe this pretend money has value that you can trade it in for actual money. So imagine if someone would let you spend Monopoly play money at your local store. Similar to that, except first you have to get a sucker to give you cash for your monopoly money & there are more suckers than ever now. But any random day the government can push a button that makes all of the pretend money vanish.

[Astarlessnightsky]

cryptocurrency is when i believe i can buy a real car with the gold my character has in my video games.

But with cryptovurrency i actually can, as long as enough people also believe in it.

So its not so different from the $£¥...

Blockchain is like waiting in line for a really important strongly limited item. So if anybody tries to replace someome, or squeeze in between both people infront and behind him will tell you this person doesn't belong here. Everyone keeps track of the order of people and no one can cheat.

[Friendlybro79]

This is a hilarious question.

Hey Grandma... Did you get a haircut? It looks beautiful.

Oh you want to know about the whole cryptocurrency and Blockchain thing huh? Well imagine you and your friends all keep a copy of the same notebook to track how much money everyone owes each other. If someone tries to lie and say, “Grandma owes me $50,” all the other notebooks would show that’s not true. That’s how blockchain works. It keeps everyone honest without needing a bank.

And the money that works in this system? That’s cryptocurrency! It’s like a special kind of digital dollar, but instead of a bank verifying it, the computers using blockchain do the job.

Grandma can you make me a grilled cheese please? This made me hungry.

[MikeTheBartender]

I do a very small percent of my portfolio in crypto. I think it's more gambling than anything else. Take $1000 anywhere in the world or and most countries you can exchange it, or very much use it... Crypto they will look at you like you have five heads, once that changes I'll change my view on it. It's still gambling in my opinion. But that being said you are young, nothing wrong w playing with it a little.

[Anonymous]

I only know the basics @friendlybro79 gives a good enough explanation of how your assets are tracked and kept separate from mine.

A few years ago, maybe 7, I bought some crypto. Over the years, it has grown phenomenally. I have taken my original investment out many times over. Every time I look, I’m amazed how much I still have.

My point is that if you’re comfortable with risky investments, crypto has the potential for high returns.

[Opinion Owner]

People will say stuff like "it isn't real" or "it's gambling". Who cares? Maybe those things are true. The summer house my crypto gains bought is very real.

Centuries ago people invested in tulip bulbs. This is our version of the same. Be smart. Buy a little. Sell high. Buy low. Don't give into FUMO.

[abc3643]

Look at what you wrote:

"I bought some crypto. Over the years, it has grown phenomenally. I have taken my original investment out many times over."

"The summer house my crypto gains bought is very real."

I won't deny you investments in crypto worked out for you, but two things:

ONE:

"I bought some __________. Over the years, it has grown phenomenally. I have taken my original investment out many times over."

"The summer house my __________ gains bought is very real."

These can be said about any smart investment in __________.

TWO:

I noted in [[ ]] the important point...

"I bought some crypto. Over the years, it has grown phenomenally. I have [[ taken my original investment out ]] many times over."

By "taking my investment out" that means that you took your crypto and exchanged it for REAL currency to buy things such as your summer house. You wouldn't have to "take my investment out" to buy things if crypto was a real currency.

A lot of investors or news reports say "One Bitcoin is now worth ____________ dollars!" as if that's important. It is to a crypto investor, I suppose, but what it really says it that the currency that REALly matters is the dollar. When the headlines start reporting "One dollar is now worth _________ Bitcoin", THEN Bitcoin would be considered the real currency.

>>> The truth is always revealed in how we express ourselves.

[Opinion Owner]

@abc3643 you make an irrelevant point. Had I made money in the stock market I would have had to convert those stocks to dollars to make a purchase (in the US). Similarly, Euros are real currency but I can’t use them to buy anything in the US.

[abc3643]

Actually, not only is my point relevant - you just reiterated it.
The buy real things in the real world with real currency. Crypto is not real currency although it is something people can invest in although it has no intrinsic value.

[Opinion Owner]

@abc3643 you’re proving the axiom, you can’t educate someone who doesn’t care to learn. Enjoy yourself.

[Maybe_Maybe_not]

Using an encyclopedia for kids could be a start? Vikidia has an entry for Bitcoin at least

[Maybe_Maybe_not]

Another possibility would be to use the Simple English version of Wikipedia, I often switched to that version for science based topics which are otherwise written in an incomprehensible way when not familiar with the field

[Anonymous]

Your bank account has a balance, you need a password to transfer the balance to other bank accounts. Everyone can see your balance and the transfers, but no one really knows it's your bank account.

[RavVid]

Does your granma understand book keeping? You could explain it as a continuous journal of transactions that is never erased.

[AviatorTom]

Nope. I would just tell her not to bother with it.

[andreasderjuengere]

It's when you are hungry, and you collect things that you cannot eat.

[ContactLight]

I don't know but I do know that idiots like to invest in it

[texascollegegirl]

How intelligent is your grandmother?

[Jennz6]

Do you understand it?

[Circushowcowboy]

Scams that they should avoid

[Wise4myage]

I sure as hell can't, lol.

[Grond21]

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