How Do I Convince My Grandmother to Invest in Crypto?
It’s the hardest thing I’ve tried, but I love her, so I’m not giving up.
As I did, I sat in front of my laptop thinking, “what questions do people ask the most about cryptocurrency?” Then, it hit me. I thought about the safety of crypto. People want to know if investing in crypto is safe. So, I talked to my grandmother about it. She is 75-years-old, and it isn’t easy to get her to trust anything new. She would be considered a laggard in marketing terms. For example, if there were still rotary phones, she’d be using them. Thankfully, there aren’t. Still, I sat down and asked her, “what concerns you most about cryptocurrency if you were to invest?” She replied, “is it safe?”
A simple and valid concern, but broad-reaching. I needed more detail. So, we talked for a bit and came up with these questions:
- How likely is it someone can steal my crypto?
- Is my identity at risk of theft due to KYC?
- How can I be sure of my ROI (return on investment)? I don’t want to lose money.
Pretty solid questions, I’d say. But did you notice the theme? It’s all about risk aversion. She wants a guaranteed consistent return with no chance of her information or identity being stolen.
Whew, okay, how do I approach this? You see, my grandmother only watches the news on cable TV. Therefore, I must combat the constant machine of the “bad news” cycle. And, I imagine you will too.
Anyway, she and I spoke further, and something she said gave me another “ah-ha” moment: “I know people have to change with the times, but I don’t like it. So, I pick the lesser of two evils.”
The lesser of two evils was the key, I thought. Convincing my grandmother wasn’t about selling the positive aspects of investing in crypto but explaining to her the negatives of not investing might work. I had to use FOMO but differently. I need to restructure the questions.
- What will happen if you don’t invest your money with inflation and a possible coming crash?
- What about identity theft when I give an institution my personal information?
- How can I be sure she won’t lose money instead of gaining?
So, I’m going to go over my plan by addressing the above questions, and perhaps you can use it on someone you’re trying to convince that investing in crypto is best for them.
Let’s get it.
What will happen if you don’t invest your money with inflation and a possible coming crash?
Well, the news would have you believe it happens every day, but that’s not true. Yet, I still must fight against their constant cycle of hostile rhetoric. So, I need to find evidence not to counteract but to offer an honest and relatable scenario where not investing will lead to something worse than the possibility of crypto theft. And that would be the coming impact of inflation and an index fund bubble.
However, I don’t need charts to tell me what’s happening with inflation. Yesterday was grocery day, and when I went in to buy my favorite kombucha drink, it had gone up a whole dollar from $8.99 to $9.99. Now, technically, an increase of $1 isn’t a big deal, but it instills fear in you that it can happen again — and soon. It’s a tangible reminder that inflation is real and not just a number on a chart.
That also means my dollar is worth less than before. And think about this too: the dollar is losing its value due to infinite creation. Put that on top of inflation, and my dollar quickly becomes $0.50, as an example. Therefore, I would need to put my dollar somewhere to turn it into $2 in a reasonable amount of time to break even against the coming storm. And that means investing in crypto.
Speaking of the coming storm, the imminent crash the economy is due. One of the factors for that is the index fund bubble.
There was a time when investors hired a stockbroker, and those brokers performed discovery on particular stocks. And while that still happens, it’s to a much lesser degree. Why is that crucial? Because when you invest in an index fund, you artificially inflate the value of a business listed on the index. For example, let’s say you invest in the S&P 500. It has its stock price separate from an individual company’s stock price. And if everyone is buying index funds (and they are), a company’s stock might perform poorly in reality, but because it’s in the S&P and that index fund is doing well, then the company is doing well, seemingly.
The effect of an external force (S&P 500) affecting an individual company’s stock is artificial, and it creates a bubble of unreal value. And that bubble will pop as all bubbles do. The stock market has offered index funds for decades, and you might be thinking everything is fine, but know that the same forces affecting the index bubble were the same for the 2009 financial crisis. An external force was artificially inflating CDOs until the bubble popped.
That’s the semi-technical skinny on some factors that should concern anyone about why keeping their money solely in a bank account is going to cause them hardship. But, how is crypto going to help?
I’m talking about Bitcoin, specifically.
Every asset class is susceptible to a crash, but I talk about the positives when selling a product. Of course, there are no guarantees that an asset is foolproof, but that information doesn’t help me convince a buyer (my grandmother) to make a purchase. Anyway, Bitcoin has outperformed every asset class for the past decade by a lot. Also, as of today, it’s trending to break the 50K mark again, and several analysts expect it to keep trending upward, even doubling by the end of the year.
Remember back when I said you needed your money to double to match the scenario I posed? Yeah, the projected path of Bitcoin solves that problem. To reiterate, when I say that Bitcoin outperformed everything, I mean everything, stocks, real estate, gold, everything. So if you want to survive what’s coming, you’ll put at least some of your money in Bitcoin today. Right now, while there’s still time.
What about identity theft when I give an institution my personal information?
Identity theft is up 38% in Q2 of 2021, according to the Identity Theft Resource Center. But, unfortunately, that statistic isn’t going to calm my grandmother. So, how do I approach that hurdle? Once again, I can’t rely on positive counterpoints to save the day. Instead, I must reinforce that not acting is more detrimental than the risk of identity theft. Now, I can throw out some statistics that hackers don’t typically go after people in her age group.
However, my grandma will still focus on that 3% in her age bracket. Using stats is the wrong angle. It almost feels as if the only way to convince her is to wait until the worst happens. Then she’ll know it’s real, but then it’s too late. And that’s the message I need to send to her. If she waits and tries to play it safe, she will suffer because of the coming crisis.
There are no good statistics for identity theft. But, it’s up, and it affects all age groups across all theft types. I’m not going to lie. Using a worse scenario to convince someone you love to take action feels awful, but I need my grandmother to understand its seriousness. I’m finding that it will take strength to speak to her about investing in crypto within myself.
Stats might work on your grandmother, and I hope so. However, not on mine. So, I have to use a greater fear to provoke action. It’s terrible, but the economy is in a place it’s never been before.
How can I be sure she won’t lose money instead of gaining?
My grandmother watches enough crypto news to know it’s volatile. She doesn’t know anything particular except that it’s terrible. Meanwhile, her money in the bank never changes. It doesn’t go up or down visibly (although it does go down due to inflation, it’s not something that visually registers) unless she spends or deposits. Therefore, it’s safer to have money in the bank than investing it in some risky internet money. I mentioned earlier about Bitcoin outperforming all asset classes, but that’s not going to cut it in this part of the conversation.
In fact, my grandmother says, “a bird in the hand is worth two in the bush.” In other words, if she could have her money in cash in a box beside her chair, she would. Because she knows that if she has $100, then it remains so until she spends it. She cannot escape the poor mindset. It’s the way she grew up. She sees investing as something for wealthy people who can afford to lose money. And while she’s not entirely wrong, she’s going to lose out when inflation hits.
Now while my situation is extreme, you might have better luck convincing your grandmother. Mine is engulfed in FUD, and if I do have a chance, it’ll take a long time to convince her. I mean, I just had a conversation with her while taking a break from writing this post, and I offered to give her the $10 to invest in Bitcoin. She refused. She staunchly believes that she nor I can afford it even though I can. Heck, from my article How Hard Is It to Invest in Bitcoin Right Now?, where I invested $10, my portfolio rose $0.30. Still, my grandmother was not impressed. The point is to use all the tools when making your case and have a conversation about it. That’s the most critical part. The conversation gets them thinking and might keep them thinking after the conversation is over.
Conclusion
I’ve got my work cut out for me, but perhaps you’ll have a better shot than me. The point is to sit down and have a conversation with your family member. Ask them about their concerns, and drill down to the core of what drives them. With my grandmother, it’s fear. So, I planned to help her realize a greater fear, but it takes time. People rarely change their beliefs in a day. So, stay consistent without pestering.
Gather evidence to support your claim. Show your loved one you care enough to research to convince them. While it’s not an easy win, a win is a win. So, take the time to show them you care about their future. Their future with crypto can save them from the hardships to come. And isn’t that worth fighting for?
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