This video from Grist explains bitcoin, blockchains, and the energy use involved in cryptocurrency transactions.
Students will learn how decentralized transactions work, how bitcoins get mined, the electricity used in these processes, possible solutions, and the counterarguments bitcoin supporters might have.
Teaching Tips
Positives
It uses visuals and simple vocabulary to explain what might otherwise be a confusing subject matter.
It demonstrates a conversation for and against bitcoin's energy consumption using different perspectives and counterarguments.
Additional Prerequisites
Students should have a basic understanding of supply and demand.
Students should understand why diverging from fossil fuel energy consumption is more sustainable.
There is a pop-up ad during the video.
Differentiation
Economics classes can analyze the conversation about bitcoin possibly accelerating the transition to more renewable energy sources, and then determine the validity of that perspective.
Students can research and compare bitcoin's electricity use to other major consumers or sectors.
The description links to their sources for further context.
Cryptocurrency generation requires an extreme amount of electricity. While some estimates claim that nearly 40% of that energy comes from renewable sources, the majority is still generated with fossil fuels. This resource offers an explanation and their sources for easy access. This resource is recommended for teaching.
Standards
Social Sciences
Economics (K-8)
7.8 Examine how economic decisions affect the well-being of individuals, businesses, and society.
Economics: Global Economy (9-12)
HS.24 Explain how current globalization trends and policies affect economic growth, labor markets, labor conditions, human rights, the environment, and resource and income distribution in different nations.
