Cryptocurrency

What are cryptocurrencies and how do they work?

Cryptocurrencies are digital decentralised cash systems. Each transaction is controlled by algorithms and takes place directly between users. The amount of money someone owns is stored in a digital wallet on the computer or the cloud, and is protected by an encryption process.

Middle School (Gale In Context)

This is one of the EPIC databases. EPIC is a collection of reliable databases covering lots of different topics. It’s put together especially for New Zealand school students and has articles, images and videos to answer questions like this.

• Enter the keyword 'cryptocurrencies' or 'bitcoin' into the search bar at the top of the page.

• The coloured boxes next to the articles show the content levels.

• Results are grouped by type eg reference, videos and news.

• Select something to look at like the reference article about Cryptocurrency or Blockchain (a system that records transactions).

Tips: To get to the EPIC resources you will need a password from your school librarian first. Or you can chat with one of our AnyQuestions librarians between 1 and 6pm Monday to Friday and they will help you online. Some EPIC databases may also be available through your public library.

Britannica School

This online version of the Encyclopedia Britannica is another reliable database from EPIC.

• Select Secondary and enter keywords like 'cryptocurrency' or 'Bitcoin'.

• Choose an article to read like cryptocurrency (digital asset) or non-fungible token (NFT).

• Use the Related section to explore more.

Tips: Search words, or keywords, are the most important words in our question. Usually it’s better to leave out small words like ‘the’, ‘a’ and ‘of’ and just choose the main ones, eg bitcoin. We can always change our keywords or add more if we need to.

Khan Academy

This is a free website filled with educational videos on a range of topics, including cryptocurrencies.

• Enter the keyword 'cryptocurrency' into the search bar at the top of the page.

• This will bring up a range of videos and articles related to cryptocurrencies eg Bitcoin: What is it?

Tips: Websites that have .org or .net in the address can have good information, but you need to assess how reliable it is. Check the About us link on the website. The Khan Academy About page shows us that Khan Academy is partnered with lots of other reliable organisations, like NASA and MIT (the Massachusetts Institute of Technology, a very prestigious university).

Issues

As cryptocurrencies are becoming more popular, it raises the question of how they should be managed and what risks there are. For example, computer systems being hacked or money transfer errors. All the computers involved in mining, an important process in Bitcoin, use an large amount of energy. The legal status of cryptocurrencies is not always clear. While allowed in New Zealand, some countries have enforced strict laws to ban them. Transactions can be anonymous and untraceable which opens up possibilities for money laundering, tax evasion or the use for criminal activities.

Global Issues (Gale In Context)

This EPIC database has reliable information on issues worldwide. It includes news, global viewpoints, reference materials, information about specific countries, videos and statistics.

• Go to Browse Issues.

• Look through the list for Digital Currencies.

• There will be a good Overview or you can choose to look at other information that is grouped by type of resource eg statistics, videos, audio and news.

Tips: Many web pages have links to further information or to other recommended sites. Following these links is a great way to find out more. This searching method is called “pearl growing” because you are picking up pieces of sand to make a beautiful pearl!

Opposing Viewpoints (Gale In Context)

This is another EPIC database. It gives for and against opinions on different social topics including cryptocurrency.

• Select the Business and Economics issue to bring up a list of topics.

• Choose Digital Currency.

• There will be a good Overview or you can choose to look at other information that is grouped by type of resource eg viewpoints, videos, magazines and news.

Tips: To get to the EPIC resources you will need a password from your school librarian first. Or you can chat with one of our AnyQuestions librarians between 1 and 6pm Monday to Friday and they will help you online. Some EPIC databases may also be available through your public library.

Books

There are many books that have been written about this topic - check out your local public or school library to see what they have.

Here are some recommended titles:

• Heads up money by Marcus Weeks.

• Bitcoin for the befuddled by Conrad Barski and Chris Wilmer.

• A quick history of money : from bartering to Bitcoin by Clive Gifford.

• Digital cryptology by Rachael L Thomas.

SCIS no: 1870135