The topic of cryptocurrency and its influence on global finance has become increasingly relevant in IELTS Writing Task 2 examinations. Based on analysis of past papers and current trends, questions about digital currencies and financial technology appear approximately once every 3-4 months, particularly in countries with high cryptocurrency adoption rates like India, South Korea, and Vietnam.
Analysis of Topic and Question Types
Common question types focus on the benefits and drawbacks of cryptocurrency adoption, its impact on traditional banking, and potential future implications for global economics. Here’s a relevant question that has appeared in recent IELTS tests:
Some people believe that cryptocurrency will eventually replace traditional currency systems worldwide. To what extent do you agree or disagree with this statement?
Cryptocurrency adoption trends and impact on global financial systems
Band 8 Sample Essay
In recent years, cryptocurrency has emerged as a revolutionary financial innovation, leading some to predict it will supersede conventional money. While I acknowledge cryptocurrency’s significant potential, I disagree with the notion that it will completely replace traditional currency systems.
Cryptocurrency offers several compelling advantages that support its growing adoption. Firstly, blockchain technology enables secure, transparent transactions without intermediaries, potentially reducing costs and increasing efficiency in global commerce. Additionally, digital currencies provide financial inclusion for the unbanked population, particularly in developing nations where traditional banking infrastructure may be limited.
However, several critical factors make complete replacement of traditional currency unlikely. The primary concern is volatility – cryptocurrency values can fluctuate dramatically within short periods, making them unreliable for everyday transactions and long-term financial planning. Furthermore, regulatory challenges and environmental concerns regarding crypto mining pose significant obstacles to widespread adoption.
Traditional currency systems also maintain distinct advantages. Central banks can implement monetary policies to stabilize economies during crises, a capability absent in decentralized cryptocurrencies. Moreover, conventional currencies benefit from established legal frameworks, widespread acceptance, and centuries of trust-building among users.
In conclusion, while cryptocurrency will likely play an increasingly important role in the global financial ecosystem, it is more probable that it will coexist with traditional currency rather than replace it entirely. A hybrid system incorporating both forms of money may emerge, offering users the best of both worlds.
Band 6.5 Sample Essay
In modern society, cryptocurrency has become very popular and some people think it will take over normal money systems. I partially agree with this idea because while cryptocurrency has benefits, it also faces big problems.
There are some good things about cryptocurrency that make people think it can replace normal money. First, it is very fast to send money anywhere in the world using cryptocurrency. Also, people don’t need banks to use it, which saves money on fees. Many young people like using cryptocurrency because it feels modern and exciting.
However, cryptocurrency has serious problems that make it difficult to replace regular money. The biggest problem is that the price changes too much – one day Bitcoin might be worth a lot, and the next day it might lose value. Also, many older people don’t understand how to use cryptocurrency, and some countries don’t allow it.
Normal money is still important because governments control it to help the economy. Banks and shops everywhere accept regular money, but not all accept cryptocurrency. Also, if your computer gets hacked, you might lose all your cryptocurrency.
In conclusion, I think cryptocurrency will become more common but won’t completely replace normal money. Both types of money will probably be used together in the future.
Analysis of Band Scores
Band 8 Essay Analysis
- Sophisticated vocabulary and complex structures
- Clear position with well-developed arguments
- Coherent paragraphing with effective linking
- Relevant examples and specific details
- Balanced discussion of multiple perspectives
Band 6.5 Essay Analysis
- Simple but clear vocabulary
- Basic argument structure
- Some repetition and informal language
- Limited use of complex sentences
- Less sophisticated examples and reasoning
Key Vocabulary
- cryptocurrency (n) /ˌkrɪptəʊˈkʌrənsi/ – digital or virtual currency
- blockchain (n) /ˈblɒktʃeɪn/ – digital ledger technology
- volatility (n) /ˌvɒləˈtɪləti/ – tendency to change rapidly
- decentralized (adj) /diːˈsɛntrəlaɪzd/ – distributed control system
- monetary policy (n) /ˈmʌnɪtəri ˈpɒlɪsi/ – central bank’s actions
- financial ecosystem (n) /faɪˈnænʃəl ˈiːkəʊsɪstəm/ – network of financial services
- intermediaries (n) /ˌɪntəˈmiːdiəriz/ – middlemen in transactions
Consider practicing with these similar topics:
- Digital currencies’ impact on international trade
- The future of banking in a cryptocurrency era
- Benefits and drawbacks of cashless societies
Share your practice essays in the comments for feedback and improvement suggestions.
