by which I assume she meant that it has to go to zero,
Not zero I think, though I reckon that is what she fears.
Your wife is likely to be in the majority of people who have no idea of the magnitude of the change that is ahead of us in a multitude of fronts.
She definitely is in this group. It is hard to imagine the entire world ever known, being turned over.
How on Earth can anyone be oblivious to significance of that?
Because not only do most people not understand what crypto is, they don't understand how an economy works at all. :)
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How can anyone not understand what counterparty risk means? Surely, anyone who has ever bought something online or used a peer-to-peer market for anything - this would include most mothers when shopping for baby clothes - understands that not every actor is a good one. Everyone has heard of corruption or is aware of the fact that fraud is a thing.
To mitigate counterparty risk we need to employ and army of court officers and solicitors, policemen and prison administrators. It is patently clear that any technology that reduces counterparty risk is massively valuable.
But when it comes to cryptocurrencies, it is probably too much to ask to assume that the average person would understand what permissionless blockchains are and why each one of them must have a native cryptocurrency to maintain the consensus mechanism even when explained to in detail.
Also, understanding why Bitcoin has value requires understanding what money is at a very deep level, which requires understanding what stock-to-flow ratio means and how it relates to stores of value.
To the uneducated, Bitcoin looks like a pure pyramid scheme. Those who have education in topics such the history of money understand why Bitcoin is the perfect store of value asset for the digital age.
There is a difference between knowing this, and understanding the connection to other aspects.
Yeah, it's a connection one must make oneself or have someone else spell out for you.
For instance, the value of Bitcoin is in the fact that it has the money properties of gold and more.
If your wife wants to understand crypto then The Bitcoin Standard written by Saifedean Ammous is a must. In it, he spells it out as clearly as anyone can.
Stores of value are absolutely necessary. For instance, when someone sells their home but does not immediately buy another one and waits, sometimes many years, they'll need something to park their value in. Now, the euro has so far been good enough for that kind of purposes. But it is being printed at a rate that casts doubt in its ability to function as a store of value in the long run. 30-year and 10-year euro bond interests rates are going up as we speak and those are something that the ECB can't do much about by printing money - except possibly to cause them to go up more.
Bitcoin is superior as a store of value to fiat currencies. The fact that the latter have a monetary authority "backing" them means nothing because this authority is made up of a small number of puny humans whose intellectual capacity is insufficient to understand something as incredibly complex as the global financial system. I found that out when I watched a video on the Real Vision Finance channel on YouTube where a Chicago University professor of finance was interviewed about how money multiplication actually works these days. Quantifying it and its effects escapes the best experts. Besides, the tools of central banks are quite limited. They can't do fiscal policy and thus alleviate economic shocks too much even in acute situations.
What Bitcoin has going for it is unprecedented transparency and an ironclad issuance schedule and tokenomic incentives that have so far worked very well in propelling it towards becoming a globally accepted store of value asset in the coming decades.
The most beautiful aspect is it that it is a protocol and based on math and physics and not the whims of any weak-minded sacks of meat.
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It is taking me a while to get to comments :)
Have you had a lot of success in spelling it out? It seems that it always ends up being that it has to be "self-discovered" with the spelling being a slow introduction over time.
I think for my wife at this point, she is quite happy not understanding. Although I have told her it is imperative that at least she learns the security side of things, as currently I have to rely on other people to help her in my demise.
I think it is because of this that there will be the paradigm shift that starts to connect value to reality again, activity again.
I wouldn't say a lot. But I have got one friend interested in an investing in crypto. That was a year ago. I think it was last month that he thanked me for it. :)
He's not into social media or Hive for that matter. I have asked him to join.
It's understandable that not everyone is into anything and things like macroeconomics in particular. But I recall you mentioning that she has been at least somewhat active on Facebook and other mainstream social media. I know your wife has a Hive account which was created for her when we were on Steem. She used to write long posts from time to time and that her posts received quite a bit of engagement as well. Why did she stop? She's one of those rare people who've got family on Hive, both of whom (Galen and you) have a decent chunk of stake.
This is critical. I suggest you write up thorough instructions just in case. In fact, I should do the same in case I'm forced to leave this party early or become incapacitated. (Fingers crossed for the both of us.)
This is about network effect and not just speculation. It's hard to keep up with everything that's going on even on Hive.
"ok, I am 800% up--- I guess thank you..." :D
She likes engaging with family more than strangers I think. She isn't really an "internet surfer" kind of person. The other platforms offer he familiar people. Galen and I aren't good enough obviously :D
Galen is my backup here, plus a couple other people I have given her names for that she can trust.
I just wrote about this. it is impossible for me to keep up with even the things I have significant stake in, let alone everything else.
I see. Not even when you get paid for it? :)
LOL
That's good. I should get around to it at some point.
Yes. That's why diversification is a terrible strategy when it comes to crypto. If you want to diversify, Bitcoin is better diversification than anything. As for alts, stick to what you know and understand and can participate in yourself.