With the recent price fluctuations in bitcoin (BTC) attracting new attention from the blockchain industry, the conversation about cryptocurrency is starting to pick up again. Google Trends data shows that the search for the word “bitcoin” rose to an annual high after assets rose above $ 19,000.

Given today’s conditions, the discussion has centered on Bitcoin, so general questions about blockchain and cryptocurrencies can be raised at the Thanksgiving table. However, while the cryptocurrency community has much to be thankful for this year, it may be that newcomers and curiosities in the cryptocurrency area want to know more about the cosmos than just the price of bitcoin. With that in mind, leading experts have shared some ways to explain some of the Bitcoin and blockchain topics to friends and family this holiday season.

Explain Bitcoin as a currency
If you have ever ventured into the cryptocurrency hole, chances are friends and family will ask you about Bitcoin and its function as a currency.

Tim Draper – a well-known venture capitalist and legendary bitcoin investor – told the Cointelegraph that it is best to inform newcomers in the crypto space that bitcoin is a safe currency that is not under government control. “Bitcoin does not obey the whims of the government, which floods the market with 13 trillion bitcoins unhindered, thus weakening your life,” he said.

Draper also stated that merchants who accept bitcoins do not have to pay anything from 2% to 4% every time a debit card is swiped. The already low transaction fees are one of the most important benefits for traders who accept cryptocurrency. According to the findings of Forrester and BitPay, a Bitcoin payment service provider, merchants who accept cryptocurrencies through BitPay pay only 1% commission on purchases. The report states: “Composite Merchant avoids 2.25% transaction fees (mainly at US rates) for each transaction made with BitPay.”

In addition, Draper mentioned how important it is for Bitcoin to be unlimited:

“Bitcoin can travel without restrictions from one country to another. Bitcoins are also easy to send money quickly from anywhere in the world. And with bitcoin wallets and smart contracts, all the right people will get paid to participate in a Hollywood movie, for example, as long as the payment was not equal to fractions of a penny. ”
The unlimited nature of Bitcoin is extremely important, especially in countries with high inflation and economic turmoil. For example, in countries like Argentina, the demand for bitcoin grows as foreign debt builds up.

Explain why the price of bitcoin has risen
While Bitcoin and other cryptocurrencies are inherently volatile, many tend to believe that market prices for cryptocurrencies are driven by supply and demand. However, this is only part of the equation.

Bill Barrett, CEO of Abra, a peer-to-peer payment platform that supports over 70 cryptocurrencies, told the Cointelegraph that the price of bitcoin is currently rising because supply exceeds demand. However, Barkhit noted that institutional interest also affects the price of bitcoin:

“On the institutional side, we have shades of gray, which take insane amounts of capital. Not to mention that major hedge fund players have announced their exposure to Bitcoin in their portfolios. I said it would happen this year. ”
Barkhit also noted that interest is increasing, and therefore the price of bitcoin is increasing. For example, one of the most notable cryptocurrency achievements this year was PayPal’s announcement of support for this technology. “The point is, this mix of retail and institutional purchases is increasing bitcoin consumption,” Barrett said.

Explain the difference between Blockchain and Cryptocurrency
Often when discussing this topic with beginners, confusion arises about the differences between blockchain and cryptocurrencies.

Alistair Rennie, general manager of IBM Blockchain, told Cointelegraph that the main difference between blockchain and cryptocurrency is that blockchain is the technology that drives cryptocurrency, and cryptocurrency is a monetary resource.

Rennie also mentioned that blockchain technology allows you to build and maintain trust between different parties. According to Rennie, this is possible thanks to the blockchain’s unique ability to independently verify data for all participants in the transaction. Thus, it makes blockchain useful for solving business problems outside the cryptocurrency area. Rennie explained:

Blockchain acts as an unchanging accounting system for storing information as a user’s account balance. Unlike traditional databases, multiple (encrypted) copies of the database are shared by users, so that any changes are immediately visible. This makes it extremely difficult for malicious programs to deliberately manipulate data. ”

Source: CoinTelegraph