Cryptocurrency investment has become a hot topic in recent years, and it’s no surprise that this subject has found its way into IELTS Writing Task 2 questions. Based on our analysis of past IELTS exams and current trends, we anticipate that questions related to cryptocurrency investment are likely to appear more frequently in future tests. Let’s examine a relevant question that has appeared in recent IELTS exams and provide sample essays for different band scores.
Some people think that the increased use of digital currencies like Bitcoin will have a positive impact on the global economy. Others believe it could lead to economic instability. Discuss both views and give your own opinion.
Analysis of the Question
This question is a classic example of a discussion essay where you need to:
- Discuss the positive impacts of digital currencies on the global economy
- Discuss the potential economic instability caused by digital currencies
- Provide your own opinion on the matter
Let’s now look at three sample essays addressing this question, each targeting a different band score.
Sample Essay 1 (Band 8-9)
The rise of digital currencies, particularly Bitcoin, has sparked a heated debate about their potential impact on the global economy. While some argue that these cryptocurrencies could revolutionize financial systems and boost economic growth, others warn of the risks they pose to economic stability. This essay will examine both perspectives before offering a balanced view on this complex issue.
Proponents of digital currencies argue that they have the potential to positively transform the global economy in several ways. Firstly, cryptocurrencies can facilitate faster and cheaper international transactions, reducing barriers to global trade and fostering economic growth. This is particularly beneficial for developing countries with limited access to traditional banking systems. Secondly, the decentralized nature of digital currencies could reduce the power of central banks and governments over monetary policy, potentially leading to more stable currencies in countries prone to hyperinflation. Lastly, the blockchain technology underpinning cryptocurrencies has applications beyond finance, which could drive innovation and efficiency across various sectors of the economy.
On the other hand, critics argue that the widespread adoption of digital currencies could lead to economic instability. One major concern is the high volatility of cryptocurrency values, which could introduce significant uncertainty into the financial system if they become widely used. This volatility could make it difficult for businesses and individuals to plan financially and could lead to rapid and unpredictable shifts in wealth. Additionally, the pseudo-anonymous nature of many cryptocurrencies could facilitate tax evasion and illegal activities, potentially undermining government revenues and economic stability. Furthermore, the energy-intensive process of “mining” some cryptocurrencies raises environmental concerns, which could have long-term economic implications.
In my opinion, while digital currencies have the potential to bring about positive changes in the global economy, their current form and the lack of robust regulatory frameworks make them a double-edged sword. I believe that with proper regulation and technological advancements, cryptocurrencies could be integrated into the global financial system in a way that harnesses their benefits while mitigating their risks. However, this will require careful consideration and international cooperation to develop appropriate policies and safeguards.
In conclusion, the impact of digital currencies on the global economy is a complex issue with valid arguments on both sides. While they offer exciting possibilities for financial innovation and inclusion, the potential risks cannot be ignored. As these technologies continue to evolve, it will be crucial for policymakers, financial institutions, and technology developers to work together to shape a future where digital currencies can contribute positively to global economic stability and growth.
(Word count: 420)
Impact of cryptocurrency investment on global economy
Essay Analysis (Band 8-9)
This essay demonstrates excellent characteristics of a high-scoring IELTS Writing Task 2 response:
Task Achievement: The essay fully addresses all parts of the task, discussing both views and providing a clear personal opinion.
Coherence and Cohesion: The essay is well-organized with clear paragraphing. It uses a range of cohesive devices effectively (e.g., “Firstly,” “Secondly,” “On the other hand,” “In conclusion”).
Lexical Resource: The essay uses a wide range of vocabulary with very natural and sophisticated control (e.g., “decentralized nature,” “underpinning,” “pseudo-anonymous,” “mitigating”).
Grammatical Range and Accuracy: The essay demonstrates a wide range of grammatical structures used accurately and appropriately (e.g., complex sentences, passive voice, conditional structures).
Development of Ideas: Each main point is well-developed with relevant examples and explanations.
Balanced Argument: The essay presents a balanced view of both perspectives before offering a nuanced personal opinion.
Conclusion: The conclusion effectively summarizes the main points and reinforces the writer’s position.
Sample Essay 2 (Band 6-7)
The increasing use of digital currencies like Bitcoin has become a topic of debate in recent years. Some people believe it will have a positive effect on the global economy, while others think it might cause economic instability. This essay will discuss both views and give my opinion.
There are several reasons why digital currencies could be good for the global economy. Firstly, they make it easier and cheaper to send money across borders, which can help international trade. This is especially helpful for people in developing countries who might not have access to regular banks. Secondly, digital currencies are not controlled by any government, which means they might be more stable in countries where the normal currency loses value quickly. Also, the technology behind digital currencies, called blockchain, could be used in other areas to make things more efficient.
However, there are also concerns about how digital currencies might cause problems for the economy. One big issue is that the value of digital currencies can change a lot in a short time, which makes them risky to use for everyday transactions. If many people start using them, it could make the whole economy less stable. Another problem is that digital currencies can be used for illegal activities because they are harder to track than regular money. This could lead to more crime and make it harder for governments to collect taxes. Lastly, some digital currencies use a lot of energy to create, which is bad for the environment and could have long-term economic effects.
In my opinion, digital currencies have both good and bad points when it comes to their effect on the global economy. I think that with proper rules and improvements in technology, they could be used in a way that brings more benefits than problems. However, this will take time and cooperation between different countries to make sure it’s done safely.
To conclude, the impact of digital currencies on the global economy is a complicated issue. While they offer some exciting possibilities, there are also real risks to consider. It’s important for governments and financial experts to work together to find ways to use digital currencies that help the economy without causing instability.
(Word count: 368)
Essay Analysis (Band 6-7)
This essay demonstrates good characteristics of a mid-range IELTS Writing Task 2 response:
Task Achievement: The essay addresses all parts of the task, discussing both views and providing a personal opinion.
Coherence and Cohesion: The essay is generally well-organized with clear paragraphing. It uses some cohesive devices (e.g., “Firstly,” “Secondly,” “However,” “To conclude”), though not as sophisticatedly as the Band 8-9 essay.
Lexical Resource: The essay uses a sufficient range of vocabulary, though some expressions are less precise or sophisticated compared to the higher band essay (e.g., “good for the global economy” instead of “positively transform the global economy”).
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentence structures with generally good control, though not as varied as the Band 8-9 essay.
Development of Ideas: Main points are developed with relevant ideas, though some points could be elaborated further.
Balanced Argument: The essay presents both perspectives before offering a personal opinion.
Conclusion: The conclusion summarizes the main points and restates the writer’s position, though less comprehensively than the Band 8-9 essay.
Sample Essay 3 (Band 5-6)
Digital currencies like Bitcoin are becoming more popular these days. Some people think they will be good for the world’s economy, but others worry they might cause problems. I will talk about both ideas and give my opinion.
People who like digital currencies say they can help the economy in some ways. They make it easier to send money to other countries without paying a lot of fees. This can help people in poor countries who don’t have normal banks. Also, digital currencies are not controlled by governments, so they might be more stable in some places. The technology used for digital currencies might also be useful for other things.
But there are also worries about digital currencies. One big problem is that their value changes a lot, which can be risky. If many people use them, it could make the economy unstable. Another issue is that people might use digital currencies for illegal things because they are harder to track. This could cause problems for governments. Some digital currencies also use a lot of electricity, which is bad for the environment.
I think digital currencies have good and bad points. They could be helpful if used correctly, but they could also cause problems if not managed well. Governments need to make rules to make sure digital currencies are used safely.
In conclusion, digital currencies might affect the world’s economy in different ways. They have some benefits, but also some risks. It’s important for experts to find ways to use digital currencies that help people without causing too many problems.
(Word count: 262)
Cryptocurrency regulation and its impact on global economy
Essay Analysis (Band 5-6)
This essay demonstrates characteristics of a lower mid-range IELTS Writing Task 2 response:
Task Achievement: The essay addresses the task, discussing both views and providing a personal opinion, but with less depth and development than higher band essays.
Coherence and Cohesion: The essay has a basic structure with some paragraphing. It uses simple cohesive devices (e.g., “Also,” “But,” “In conclusion”), but less effectively than higher band essays.
Lexical Resource: The essay uses a limited range of vocabulary with some repetition. It lacks the precise and sophisticated language of higher band essays.
Grammatical Range and Accuracy: The essay primarily uses simple sentence structures with occasional attempts at more complex structures. There are some errors, but they do not significantly impede communication.
Development of Ideas: Main points are presented but not fully developed or supported with specific examples.
Balanced Argument: The essay presents both perspectives before offering a personal opinion, but the treatment is more superficial than in higher band essays.
Conclusion: The conclusion restates the main points and the writer’s position, but in a simpler manner than higher band essays.
Key Vocabulary to Remember
Cryptocurrency (noun) – /ˌkrɪptəʊˈkʌrənsi/ – a digital currency in which transactions are verified and records maintained by a decentralized system.
Volatility (noun) – /ˌvɒləˈtɪləti/ – liability to change rapidly and unpredictably, especially for the worse.
Decentralized (adjective) – /diːˈsentrəlaɪzd/ – controlled by several local offices or authorities rather than one single one.
Blockchain (noun) – /ˈblɒktʃeɪn/ – a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
Hyperinflation (noun) – /ˌhaɪpərɪnˈfleɪʃn/ – monetary inflation occurring at a very high rate.
Pseudo-anonymous (adjective) – /ˌsjuːdəʊəˈnɒnɪməs/ – appearing to be anonymous while retaining some identifying characteristics.
Economic stability (noun phrase) – /ˌiːkəˈnɒmɪk stəˈbɪləti/ – a state in which an economy experiences constant growth and low inflation.
Financial inclusion (noun phrase) – /faɪˈnænʃl ɪnˈkluːʒn/ – the availability and equality of opportunities to access financial services.
Regulatory framework (noun phrase) – /ˈreɡjələtəri ˈfreɪmwɜːk/ – a system of regulations and the means to enforce them, usually established by a government to regulate a specific activity.
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.
In conclusion, the topic of cryptocurrency investment and its impact on the global economy is a complex and evolving subject that is likely to appear in future IELTS Writing Task 2 questions. To prepare effectively, practice writing essays on this topic, focusing on developing balanced arguments, using appropriate vocabulary, and structuring your response clearly. Remember to time yourself and aim to write around 250-300 words in 40 minutes.
For additional practice, try writing an essay on the following related topic:
Some people believe that governments should regulate cryptocurrency trading more strictly, while others argue for a free market approach. Discuss both views and give your opinion.
Feel free to share your practice essays in the comments section for feedback and discussion. This active engagement will help you improve your writing skills and prepare more effectively for the IELTS Writing Task 2.
