Cryptocurrency has become a hot topic in recent years, sparking debates about its potential to revolutionize the financial system. This subject has appeared in IELTS Writing Task 2 questions with increasing frequency, reflecting its growing importance in global discussions. Based on past exam trends and current relevance, we can expect questions related to cryptocurrency to continue appearing in future IELTS tests.
Let’s examine a relevant IELTS Writing Task 2 question on this topic:
Some people believe that cryptocurrency will replace traditional currency in the future. To what extent do you agree or disagree with this statement?
Analyzing the Question
This question asks for your opinion on whether cryptocurrency will replace traditional currency. Key points to consider:
- Understand the term “cryptocurrency” and its current role in the financial system
- Compare the advantages and disadvantages of cryptocurrency and traditional currency
- Consider the potential future scenarios for both forms of currency
- Develop a clear stance on the extent to which you agree or disagree with the statement
Sample Essay 1 (Band 8-9)
Cryptocurrency has gained significant attention in recent years, with some proponents arguing that it will eventually supersede traditional forms of money. While I acknowledge the potential of digital currencies, I partially disagree with the notion that they will completely replace conventional currency in the future.
Undoubtedly, cryptocurrencies offer several advantages over traditional money. Firstly, they provide enhanced security and privacy through blockchain technology, making transactions more transparent and less susceptible to fraud. Secondly, cryptocurrencies facilitate faster and cheaper international transfers, bypassing the need for intermediaries and reducing associated fees. Lastly, they offer financial inclusion to the unbanked population, particularly in developing countries where access to traditional banking services is limited.
However, several factors hinder the complete adoption of cryptocurrencies as a replacement for traditional currency. The volatility of cryptocurrency values poses a significant challenge, as rapid fluctuations can lead to economic instability and uncertainty. Moreover, the lack of centralized control and regulation raises concerns about their potential use in illegal activities and tax evasion. Additionally, the energy-intensive nature of cryptocurrency mining has environmental implications that cannot be ignored.
Furthermore, governments and central banks are unlikely to relinquish their control over monetary policy, which is crucial for managing inflation and economic stability. Instead, we may see the emergence of central bank digital currencies (CBDCs) that combine the benefits of cryptocurrencies with the oversight of traditional financial institutions.
In conclusion, while cryptocurrencies will undoubtedly play an increasingly important role in the future of finance, it is more likely that they will coexist with traditional currencies rather than replace them entirely. A hybrid system that leverages the strengths of both digital and conventional currencies is a more plausible scenario for the future of money.
Cryptocurrency and traditional money digital wallets
Sample Essay 2 (Band 6-7)
In recent years, cryptocurrency has become very popular, and some people think it will replace traditional money in the future. I partly agree with this idea because cryptocurrency has some advantages, but I also think there are problems that will stop it from completely replacing normal money.
One reason why cryptocurrency might replace traditional money is that it is very convenient. People can send money quickly and easily to anyone in the world without needing banks. This is especially helpful for people who don’t have bank accounts or live in countries with unstable currencies. Also, cryptocurrency transactions are more private and secure because they use special technology called blockchain.
However, there are some big problems with cryptocurrency that make it difficult to replace normal money completely. First, the value of cryptocurrency changes a lot, which makes it risky to use for everyday things like buying food or paying bills. Second, many governments don’t like cryptocurrency because they can’t control it easily, and they worry about people using it for illegal activities. Third, not everyone understands how to use cryptocurrency, especially older people or those without access to technology.
I think in the future, we will probably see a mix of cryptocurrency and traditional money. Some people will use cryptocurrency for certain things, like online shopping or international money transfers. But traditional money will still be important for everyday use and for governments to control the economy. Maybe banks and governments will create their own digital currencies that combine some features of cryptocurrency with traditional money.
In conclusion, while cryptocurrency has some advantages and will become more common in the future, I don’t think it will completely replace traditional money. Instead, we will likely see both types of currency being used together in different ways.
Sample Essay 3 (Band 5-6)
Nowadays, many people talk about cryptocurrency and think it will become the new money in the future. I think this idea is partly true, but also has some problems.
Cryptocurrency is good because it is easy to use. People can send money fast to other countries without paying big fees to banks. Also, it is safe because it uses special computer technology. Some people like it because governments cannot control it easily.
But cryptocurrency also has big problems. The price of cryptocurrency changes a lot, so it is not stable like normal money. This makes it difficult to use for buying things every day. Also, many people don’t know how to use cryptocurrency, especially old people. Some bad people use cryptocurrency for illegal things, which makes governments worried.
I think in the future, we will have both cryptocurrency and normal money. Some people will use cryptocurrency for some things, like buying things on the internet. But normal money will still be important for most people to use every day. Maybe banks will make their own digital money that is like cryptocurrency but safer.
In conclusion, I think cryptocurrency will be more common in the future, but it will not replace all normal money. Both types of money will be used for different things.
Explanation of Band Scores
Band 8-9 Essay:
- Demonstrates a sophisticated understanding of the topic
- Presents a clear and well-developed argument
- Uses a wide range of vocabulary and complex sentence structures
- Provides specific examples and well-elaborated ideas
- Shows excellent coherence and cohesion throughout
Band 6-7 Essay:
- Shows a good understanding of the topic
- Presents a clear position with some supporting ideas
- Uses a mix of simple and complex sentence structures
- Demonstrates good vocabulary use with some less common words
- Has generally good coherence and cohesion
Band 5-6 Essay:
- Addresses the task but with limited development of ideas
- Uses basic vocabulary and simple sentence structures
- Shows some attempt at coherence but may lack clear progression
- Contains some errors in grammar and vocabulary use
- Presents a basic argument with limited supporting details
Key Vocabulary
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Cryptocurrency (noun) /ˌkrɪptəʊˈkʌrənsi/: A digital or virtual currency that uses cryptography for security.
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Blockchain (noun) /ˈblɒktʃeɪn/: A decentralized, digital ledger used to record transactions across many computers.
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Volatility (noun) /ˌvɒləˈtɪləti/: The tendency to change quickly and unpredictably, especially for the worse.
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Decentralized (adjective) /diːˈsentrəlaɪzd/: Distributed or delegated away from a central authority.
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Financial inclusion (noun phrase) /faɪˈnænʃəl ɪnˈkluːʒən/: The availability and equality of opportunities to access financial services.
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Monetary policy (noun phrase) /ˈmʌnɪtəri ˈpɒləsi/: The actions of a central bank, currency board, or other regulatory committee that determine the size and rate of growth of the money supply.
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Central bank digital currency (CBDC) (noun phrase) /ˈsentrəl bæŋk ˈdɪdʒɪtl ˈkʌrənsi/: A digital form of a country’s fiat currency that is issued and regulated by the nation’s monetary authority.
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Coexist (verb) /ˌkəʊɪɡˈzɪst/: To exist together or at the same time.
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Hybrid system (noun phrase) /ˈhaɪbrɪd ˈsɪstəm/: A system that combines two different elements or approaches.
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Cryptocurrency mining (noun phrase) /ˌkrɪptəʊˈkʌrənsi ˈmaɪnɪŋ/: The process of creating new cryptocurrency tokens and verifying transactions on a blockchain network.
In conclusion, the topic of cryptocurrency as the future of money is likely to remain relevant in IELTS Writing Task 2 questions. To prepare for such questions, consider exploring related themes such as:
- The impact of digital currencies on global economics
- Advantages and disadvantages of a cashless society
- The role of government regulation in cryptocurrency markets
- Environmental concerns related to cryptocurrency mining
- The potential of blockchain technology beyond cryptocurrencies
To further improve your writing skills, try composing your own essay on this topic and share it in the comments section below. This practice will help you refine your ideas and receive feedback from others, enhancing your preparation for the IELTS Writing Task 2.
