IELTS: Cryptocurrencies

Cryptocurrency is a combination of cryto, from cryptography, which is to do with using clever sofware codes to protect computer information and systems, and currency, which is the money of a particular country.

The first cryptocurrency is Bitcoin which was created in 2009. Facebook have annouced to lanuch a new cryptocurrency called Libra which is not a real cryptocurrency as it is backed up by a number of real currencies, such as the dollar, the pound, and the Swiss franc to keep it stable.

Cryptocurrencies are subject to whims. They are notoriously volatile which means the value of them could go down and up over a short period of time even in a negative way. It might be an exciting ride, but it could end in disaster. If you want to take the risk, you could make a lot of money, but you could lose a lot of money more than you invested.

Real currencies are reasonably stable as it is under the control of governments and banks.

Phrases

Know a fair bit about

Launching their own digital currency

Backed up by, Back up

Be subject to the whims

Crypto markets

Financial institution

Risky

Notoriously volatile

Unpredictable & Irrational

Metaphorically

be purely digital

Self-driving car

Drive off the edge of a cliff

Over a short period of time

The opposite of volatile

Be dependent of

Sentences

We usually think of money as notes and coins which come from a country’s bank.

It was, in fact, the first cryptocurrency.

It means that metaphorically …

No luck for you this time.

It is not really a cryptocurreny.

It might be an exciting ride, but it could end in disaster.