WSJ Article Highlights Crypto Giving for holidays
Julia Carpenter from the Wall Street Journal published an article today entitled: The 2021 Cash Gifts Guide: From Crypto to Tungsten Cubes. The article discusses an idea that we promote at GiftaBit, that instead of giving cash this holiday season, give the gift of crypto.
Hassles aside, many parents, children and even friends are embracing these new products—at least for the more digital-savvy in their lives. Just as stock certificates and savings bonds were gifts with a purpose in years past, gifts of crypto or NFT art can teach the recipient about financial independence, investing and saving.
The article is spot on about crypto being a great gift. It advocates giving crypto from software wallet to software wallet, which means the recipient must already have a software wallet set up before the gift is given. Technically, there’s nothing wrong with this approach except that it ruins the surprise of the gift. This how the scenario would play out:
Dad: Merry Christmas, son. I am giving you a Bitcoin for the the holiday but before I can give it, you need to set up a software wallet.
Son: A software wallet?
Dad: Yes, let’s sit down and I’ll show you how to do it.
Son: Okay, but where’s my Bitcoin?
Dad: Once you set up the software wallet, I’ll send it to you.
Son: Ah, ok.
The same process holds true for gifting NFTs.
Beyond a paper wallet, a better way to electronically send crypto is to set up a software wallet or a hardware wallet for someone and then just gift them the wallet along with the private key. Doing this is essentially hands them the wallet.
The approach works for crypto, NFTs, and more esoteric crypto positions found in the DEFI world. GiftaBit currently explains how to create and give a paper wallet and when I have a few minutes, I’m going to write about setting up and gifting a software wallet.
It’s great to see the mainstream press jumping aboard the crypto gifting train. As crypto products continue to mature, I expect we’ll see this topic continue to grow in prominence.
Until the next article, crypto gift away!