Although some economists may disagree on the longevity of cryptocurrency, it's likely to be around for years to come, and some experts believe that it may overtake spending with cash and credit cards within five to 10 years. Crypto may be generating a lot of interest from your child. So, it's your job to teach your child about Bitcoin and other Cryptocurrencies. Here's Parent Guide: How to explain Bitcoin to a child.
How to explain Bitcoin to a child?
If your child is a preschooler
How can you start to teach a young child that there is an alternative currency when they are still just learning how to count? Sure, you might not be able to explain much, but you can start. Children often “play store”, so why not bring it up then? When your child asks how you want to pay, instead of saying you want to pay with cash or a card, say you want to pay with bitcoin. This can lead to many questions that will start the conversation, like :
"What is bitcoin?
It's a type of money."
"Why not use regular money?
I could, but this is another option."
"What does it look like? Can I see it?
No, you can't see it or hold it because it exists on a computer."
"Is it on a card?
No, but it's digital like a card. You can pay with an app on your phone."
They are too young to understand the reason why bitcoin exists, of course, or why you might choose to use it instead of fiat currency, but bringing bitcoin up now will make the concept very natural to them, and open up more complex conversations as they get older.
If your child is preteen
If you let them know that you own bitcoin or are using it to pay for something, they will naturally be curious and it can be a perfect lead-in to explain the basics like this:
Bitcoin is money that you don't keep in a bank. On a computer network, information about who owns bitcoins is stored in many places so that everyone may access it. As a result, the system is fair and nobody may falsely claim to own bitcoins. Like regular money, bitcoin is available for purchase by everyone in the world and is not restricted to any particular nation or region. Without anyone's permission, you can use it to send money to anyone and purchase anything.
This is probably enough information for most preteens. Knowing that bitcoin exists and that it is available to everyone will give them a step up and spark future interest.
If your child is a teenager
Start in the same way you would for a preteen, but go more in-depth and use more complex language. They will understand!
Bitcoin is a digital currency. Bitcoin is not governed by a government or central bank like fiat money is. The mining process on the blockchain, which involves computing an algorithm, confirming transactions, and adding new blocks to the blockchain, a shared database on a decentralized peer-to-peer network, regulates the quantity of bitcoin that is made available. Everybody has access to Bitcoin, which provides a replacement for fiat money. Bitcoin's price is influenced by supply and demand. Bitcoin supply is determined by the amount of effort necessary to produce it, not by the whim of a central bank that has the power to print money out of thin air and inflate prices.
It is never too early, or too late, to talk to your children about money — and Bitcoin. At every age, your conversation can be tailored to their level of understanding, and eventually, references to Bitcoin will expand, ultimately giving your children the gift of a path to economic independence and self-sovereignty.
Parent Guide: How to explain Bitcoin to a child, I hope this article can guide you to teach your child about Bitcoin.
