Introduction to Bitcoin for Kids and Teens
This video explains the concept of Bitcoins in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about Bitcoin, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is Bitcoin
- How do you use Bitcoins
- How are Bitcoins created (mining Bitcoin)
- How to get Bitcoins
- What is the value / price of a Bitcoin
- Should you invest in Bitcoin
What is Bitcoin?
Created in January 2009, Bitcoin is now the most popular digital currency – or cryptocurrency – in the world. It has no physical presence – there are no Bitcoin bills or coins. All Bitcoin transactions happen online.
Regular currencies are controlled by the government, but Bitcoin is a decentralized currency; which means it is not controlled by a central authority.
Satoshi Nakamoto is the mysterious name associated with Bitcoin creation but nobody knows for sure who created Bitcoin.
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If there are no physical bills or coins, how can you use Bitcoin?
All Bitcoin transactions happen over the internet, so there is no need for physical bills and coins. People can transfer Bitcoins directly to each other’s digital wallet without the need to go through a bank.
However, people usually don’t use Bitcoin to pay for things. They use it mainly as an investment with an intent of making a profit.
How are Bitcoins created?
New Bitcoins are added by a process called mining. This process is complicated, but in simple terms Bitcoin mining is when computers solve mathematical equations, and as a reward they get Bitcoins.
But, since so many people are trying to mine Bitcoins, it has become very difficult to mine a sizable amount of it.
How can I get Bitcoins?
The most popular way is to buy Bitcoins online at a Bitcoin exchange.
But there are other ways to get bitcoins – buying them at special retail locations and Bitcoin ATMs, mining them, or earning them by playing some online games, completing tasks on websites that offer Bitcoins as a reward, etc.
How much is one Bitcoin worth? What is the price of one Bitcoin?
Bitcoin is a very volatile currency, with wild price fluctuations. In just the first 2 weeks of 2021, one Bitcoin’s value ranged between $29,000 and $41,000!
But you don’t need to buy a whole Bitcoin.
Each Bitcoin is made up of 100 million Satoshis, the smallest part of a bitcoin. So you can buy a fraction of a bitcoin depending on how much money you want to spend.
Is Bitcoin a good investment?
Since Bitcoin is a very volatile currency, there is a huge risk involved with trading Bitcoins.
For example, in November 2017, one Bitcoin was worth around $5,800. In December of the same year, its price skyrocketed to almost $20,000. But just a few months later, Bitcoin was back down to around $6,900.
Because of these huge price fluctuations, Bitcoin is probably not the best investment for individual investors.