Following on from: Even My Granny Wants to Learn About Bitcoin!
In recent years, Bitcoin has become an increasingly popular investment option, with many people drawn to its potential for high returns and decentralization. As a result, it is natural to wonder whether this new asset class is a suitable investment choice for older relatives, such as granny. Granny was introduced to Bitcoin in a previous article; here is the link just in case you missed it: Even My Granny Wants to Learn About Bitcoin!
Does Granny Understand Bitcoin and Crypto?
The first thing to consider is whether granny has the capacity to understand the risks involved in investing in Bitcoin and other crypto assets. In this case the answer is, yes! Because, if granny did not have a good enough grasp of the crypto technology, then it would be important to ensure she was made aware of the potential for volatility and loss of capital before investing any of late grandad’s money he left her.
Furthermore, it would be essential to understand granny’s attitude towards risk and reward. If granny is not comfortable taking on significant risk, then it is probably best to steer her away from Bitcoin as it is a highly speculative asset class.
On the other hand, if granny is a semi-experienced investor (she has bought premium bonds in the past [in the late 70s]) who is comfortable with taking on risk, then it may be worth considering whether Bitcoin could be a good addition to her portfolio. The key is to ensure that granny understands the risks involved and that she is not putting too much of late grandads’ capital into Bitcoin.
However, in this case, granny has been studying and has set her goals on becoming the next ‘bitcoin granny.’
In conclusion, while it is possible for granny and other family relatives to invest in Bitcoin, it is also important to ensure that they understand the risks involved and that they are comfortable taking on the necessary level of risk. If both conditions are met, then it may be worth exploring the potential of this asset class as part of an investment portfolio for granny.
Well, what do you think so far granny? “I want to invest a small amount cautiously.” That is a fantastic attitude that shows granny has been listening!
And although granny has still got a lot to learn about bitcoin and other crypto assets; with a more experienced players help, some careful studying and a slight hand holding; granny is ready to dip her first biscuit into the world of crypto.
Nice one granny! another cup of tea?
Next in the series: Helping Granny to Open a Bitcoin Account
Reference: Author: BitcoinBulldog.com 03-11-2023 All rights Reserved – This Article May Not Be Reproduced Without Prior Written Permission from The Author.