Bitcoin

With a partner, if possible, discuss whether you’ve come across the following terms:

• Bitcoin
• Currency
• Commodity

Discuss what you know or think you know about Bitcoin, currency, and commodities and what these terms might mean in relation to money and financial literacy.

In this learning activity, you will be learning about cryptocurrency as an alternative method to cash payments.

Blockchain technology

In 2009, the Bitcoin (or BTC) made a new kind of digital currency called cryptocurrency that didn’t require the use of a bank. It was created by an unknown individual(s) using the name Satoshi Nakamoto.

Instead of a bank, technology makes cryptocurrency like the Bitcoin possible. There is a password or key (called digital encryption), or a set of rules created by a computer (called an algorithm), which decides the value of the digital currency safely. This technology is called Blockchain.

The following flow chart describes how Blockchain works in the digital world. Work with a partner, if possible, and follow the arrows of the flowchart.

Usually, money is something of value called a commodity. This comes in the form of a product that can be seen and touched and can be exchanged for items like gold or silver.

With cryptocurrency this is not the case - it only exists on a blockchain, which is like an online register or record of transactions.

Unlike money, cryptocurrency like Bitcoin cannot be exchanged for gold or silver. Cryptocurrency is exchanged over and between networks and uses an online bank such as an e-wallet.

The following image shows a Bitcoin e-wallet. An e-wallet is where digital cards and cryptocurrency is stored. It is an online bank.

Cryptocurrency is still gaining popularity. There are some companies that accept Bitcoin as payment.

You are now going to research more about Bitcoin and online companies on your own or with a partner, if possible.

As you do your research, organize your information into the graphic organizer Bitcoin Research Organizer, or using a method of your choice.

Try to find the answers to the following questions:

• Which industries, and which online companies (their websites) and other retailers accept Bitcoin as payment?
• What can people (consumers) purchase using Bitcoin?
• Which companies used to accept Bitcoin but don’t anymore? Can you find any reasons why?
• Are there any other cryptocurrencies other than Bitcoin?
• Is there a Bitcoin ATM in your hometown?

Display your learning

Create a list of key ideas for what you’ve learned about cryptocurrency online payments in this learning activity. Display your learning in one of the following ways:

What information do you want to include? How will you include it in a way that people will learn? What does your form of advertisement need to include in order to be effective?

Reflection

As you read through these descriptions, which sentence best describes how you are feeling about your understanding of this learning activity? Press the button that is beside this sentence.

Now, record your ideas using a voice recorder, speech-to-text, or writing tool.