Spinny magnet sets up a field that induces a chain reaction of electric fields along the wire going into your house.
This transformation from kinetic to electrical energy carries right through the wires looking for somewhere to complete a circuit so a current can be induced. Toaster is plugged in and turned on and wham! Instant circuit with a tiny bit of it being along wires that can’t quite handle all the current, so the excess energy is shed as heat and light.
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