As Bitcoin aims for $100,000 and “Peanut the Squirrel” makes headlines with 3,000% gains, crypto is firmly back on the menu this holiday season. Debates about Bitcoin, meme coins, and “that dog thing Elon tweets about” are sure to liven up the table, and you, as the designated “crypto expert,” will need some talking points to WIN over the normies.
Crypto Is a Libertarian Madness
Trump’s candidacy and win unleashed the latest crypto bull run, and many now associate it with the worst excesses of MAGA and DOGE trolling. For your left-leaning relatives, seeing crypto so heavily endorsed by the new Republican administration won’t do much to help your cause. If your loyal cousin T will buy Bitcoin because of its red-and-orange connections, pivot to the facts.
Emphasize that Bitcoin is a currency that can be used by people of all beliefs, making it inherently apolitical and a movement that can unite us all. Reference Jason Maier’s book, “A Progressive’s Case for Bitcoin,” which debunks many misconceptions about Bitcoin and highlights its origins as a protest against too-big-to-fail banks, its ability to help poor and marginalized communities, and its potential to create environmental sustainability. While politics can drive price action, crypto itself should never be a partisan issue.
Crypto Is a Memecoin Casino
Somewhere between the deviled eggs and turkey, the next battle you’ll face will be meme coins. With top-shelf coins like PEPE, DOGE, and SHIB, and new entrants like PNUT delivering explosive returns, Aunt Cynthia has heard about the memecoin craze and has some opinions to share.
While POPCAT, BONK, and MOODENG capture culture and community in ways that make insiders smile, the flip side is making our industry look a bit jejune. When trying to convince pension funds and family offices to invest in crypto, it’s hard to argue the merits of Fartcoin, no matter how many Brussels sprouts you’ve eaten. The memecoin mania is fun, but it shouldn’t overshadow crypto’s true power to bring better, more efficient, and more effective financial services to the world. It’s simple: for the 1.4 billion people shut out of the traditional financial system, crypto is a better way to store value, access loans, and build wealth, enabling them to take control of their financial future. Plus, when you get down to it, memecoins are an incredibly innovative new form of financial expression and participation that can provide a sense of community and belonging missing from much of the polarizing social discourse on centralized platforms.
Crypto Is No Different From Stocks
The launch of Bitcoin and Ethereum ETFs this year has led some to say crypto is just another payday for Wall Street suits. While folks like BlackRock’s Larry Fink may help get more Boomers onto crypto, they’re missing the point. Cryptocurrencies are the antithesis of stocks and other TradFi assets that are custodied and held by centralized custodians. Digital assets are yours. They’re decentralized, unseizable, peer-to-peer, require no central authority, and often have additional utility beyond a medium of exchange and store of value.
The decentralized finance (DeFi) sector has opened up countless opportunities and leveled the playing field for regular people to access sophisticated financial instruments, earn a decent APY, or get a loan without permission. NO ONE can take your crypto if it’s properly stored under your control or halt trading to prevent you from claiming your funds. It’s completely different from traditional finance.
Crypto Is a Risky Investment
Many folks who got curious about crypto during the last bull run immediately crashed into ONE of the biggest financial frauds in US history. And those who got tired of waiting for prices to go up sold their assets at a not-so-ideal time. Everyone knows someone’s cousin, niece, or nephew who “lost it all in crypto,” particularly in NFTs. But for those who bought and held at least Bitcoin, their patience has been duly rewarded. BTC has returned an average of 671% per year since 2013, making it the best-performing asset of our time.
Just look at El Salvador’s success. President Nayib Bukele’s bet on Bitcoin in 2021 attracted its fair share of criticism, but the small Central American country’s Bitcoin holdings have now risen to over $500 million, producing an ROI of over 100%. Not only that, but his approval ratings hover around 90%, and the murder rate is now lower than the United States. Another small country doing big things with Bitcoin is the Kingdom of Bhutan, whose Bitcoin holdings now equate to over $1 billion. Does that sound risky to you?
Crypto Isn’t Real
Of course, no Thanksgiving dinner would be complete without the old adage that crypto isn’t real. Some folks just can’t get over not being able to put Bitcoin in their pocket, arguing it’s backed by nothing, unlike the dollar which has the “full faith and credit” of the US government. The cold, hard facts are your friend on this ONE. Point to the powerful network of miners behind Bitcoin, the $3 trillion crypto market cap, the ETF providers, institutions, politicians, and nation states.
Talk about Bitcoin’s limited supply of 21 million and reinforce the fact that, unlike the dollar which has lost 92% of its purchasing power since 1933, no more will ever be mined and it can never dilute the value of your holdings. Bitcoin’s limited supply makes it much more akin to gold as a scarce resource and optimal store of value, compared to the out-of-control money printer behind the greenback that dilutes the value of your savings.
Wonder why the cost of everything from HAM and eggs to home prices and the turkey on the table has gone up? Inflation is an ongoing tax on the people, and Bitcoin provides a compelling solution. Or, to put it in words Uncle Dave would agree with, Bitcoin provides a hedge against many of the risks inherent in the traditional fiat financial system.
If after all this, your family remains an immovable object, take heart. It’s better to have tried and failed than never to have tried at all. And Grandma asking about crypto again is the clearest signal you can get.
Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or any of its owners and affiliates.
