The future of money: debating cryptocurrency
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Think about these questions before reading. Share your ideas with a partner.
- How has the way you handle money, such as paying for things or saving, changed in the last ten years? What further changes do you predict for the next decade?
- When it comes to new technologies involving money, would you describe yourself as an early adopter who is willing to take risks, or someone who prefers to wait and see how things develop? Explain your reasoning.
- Imagine a world where physical cash like coins and banknotes no longer exists. What do you think would be the biggest advantages and disadvantages of a completely digital financial system?
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Risky Business
Listen to the dialogue. Notice how the vocabulary and grammar from the lesson are used.
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Answer these questions in your own words. Support your answers with evidence from the article.
01In what way does the article suggest cryptocurrency could promote financial inclusion?
Sample answerIt suggests that crypto could help people who don't have access to traditional banks. They could use it to send and receive money or make payments with just a smartphone, which is more common than a bank account in some parts of the world.
02According to the article, what is one of the main financial risks associated with cryptocurrency?
Sample answerThe article points out its high volatility. This means its value can change dramatically in a very short time, so it's a very risky investment compared to more traditional assets.
03Why might governments face regulatory challenges with cryptocurrencies, based on the issues mentioned in the article?
Sample answerThe article implies that because crypto is decentralized and can be anonymous, it's hard for governments to track transactions. This makes it difficult to apply normal financial rules, prevent illicit activities, or collect taxes.
04How does the article present the overall potential of cryptocurrency, considering both its positive and negative aspects?
Sample answerIt presents a balanced view. On one hand, it highlights the potential for things like financial inclusion. But on the other hand, it warns about serious problems like volatility and its use for illegal purposes. The article doesn't say it's all good or all bad; it shows it's a complex technology with both promise and risks.
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Key vocabulary for discussing investments
Vocabulary
These expressions will help you communicate more naturally and precisely about financial topics like cryptocurrency.
Examples
A steep learning curve — when something is difficult and takes a lot of effort to learn in a short amount of time.
Usage note: Often used with verbs like 'have' or 'face'. For example, 'Understanding blockchain technology has a steep learning curve for beginners.'
To hedge your bets — to reduce your risk of loss by having several different options or investments.
Usage note: This is a common idiom in finance and general decision-making. It's similar to 'diversifying your portfolio' or 'not putting all your eggs in one basket'.
To jump on the bandwagon — to join a popular trend or activity, often because many other people are doing it.
Usage note: This phrase can have a slightly critical tone, suggesting someone is following the crowd without independent thought. For example, 'Many people jumped on the crypto bandwagon without researching it first.'
High-risk, high-reward — describing something that has the potential for a large profit but also a significant chance of failure or loss.
Usage note: This is a common collocation used as an adjective. For example, 'Investing in tech start-ups is a high-risk, high-reward strategy.'
To cash out — to sell an investment, like stocks or crypto, in order to convert it into money.
Usage note: This is a common phrasal verb in the world of finance and investing. For example, 'She decided to cash out her Bitcoin investment when the price doubled.'
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Crypto investment scenarios
What are the potential consequences of these financial actions?
Match the beginning of each sentence with its logical ending.
Drag or click to match
Definitions
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Grammar: mixed conditionals
Grammar
Mixed conditionals combine parts of the second and third conditionals. We use them to talk about a hypothetical past condition and its present result, or a hypothetical present condition and its past result. This structure is very useful for discussing financial decisions and their consequences.
Examples
If I had invested in Bitcoin ten years ago, I would be rich now.
This connects a hypothetical past action (investing) with a present result (being rich). Structure: If + past perfect, would + base verb.
If I understood blockchain technology better, I would have bought some cryptocurrency last year.
This connects a hypothetical present state (understanding technology) with a past action (buying crypto). Structure: If + past simple, would have + past participle.
If the government had regulated the market earlier, we might not have so many financial scams today.
We can use other modals like 'might' or 'could' to express a less certain result.
Key points
- Past condition, present result: If + had + past participle, ... would + infinitive.
- Present condition, past result: If + past simple, ... would have + past participle.
- Pay close attention to the time frame in each part of the sentence (e.g., 'ten years ago', 'now').
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Find the mistake
Read the sentences below, which are all related to finance and cryptocurrency.
Each sentence contains one error. Find and correct it.
01If I would have invested in cryptocurrency five years ago, I would be much richer now.
Corrected version
If I would have had invested in cryptocurrency five years ago, I would be much richer now.
02The market's high volatile makes many traditional investors nervous.
Corrected version
The market's high volatile volatility makes many traditional investors nervous.
03Many people are hesitant to invest on new technologies they don't fully understand.
Corrected version
Many people are hesitant to invest on in new technologies they don't fully understand.
04It seems like everyone is jumping in the bandwagon and buying digital assets.
Corrected version
It seems like everyone is jumping in on the bandwagon and buying digital assets.
05He will definite sell his crypto portfolio if the price reaches a new high.
Corrected version
He will definite definitely sell his crypto portfolio if the price reaches a new high.
06Understanding blockchain technology can be a high learning curve for beginners.
Corrected version
Understanding blockchain technology can be a high steep learning curve for beginners.
07The number of companies accepting crypto payments are clearly growing each year.
Corrected version
The number of companies accepting crypto payments are is clearly growing each year.
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Useful phrases: debating new financial technologies
Vocabulary
When discussing topics like cryptocurrency, people often have strong opinions. These phrases will help you express your views, agree or disagree politely, and add nuance to the conversation.
Examples
The way I see it, the potential is huge, but the risks are just as significant. — Stating a balanced opinion.
Register: neutral. Use this to introduce your main viewpoint at the start of a discussion or when asked for your opinion. It shows you've considered both sides.
I'm not entirely convinced it's the future of finance. — Expressing polite skepticism.
Register: neutral. This is a softer, more diplomatic way to say 'I don't believe it'. Use it to disagree with a very positive statement without being confrontational.
I take your point about decentralization, but what about the regulatory hurdles? — Acknowledging an argument before countering it.
Register: neutral/slightly formal. Excellent for debates. It shows you've listened to the other person's argument before presenting your own counter-argument.
To play devil's advocate for a moment, isn't the volatility a major issue for everyday use? — Introducing an opposing argument for discussion.
Register: neutral. Use this phrase to explore a counter-argument without necessarily agreeing with it yourself. It’s a great way to deepen the discussion.
Ultimately, it all comes down to individual risk tolerance. — Summarizing a key factor or concluding a point.
Register: neutral. Use this to wrap up a complex idea or suggest a fundamental principle that influences the whole topic. It's a good way to find common ground.
I'm cautiously optimistic about the underlying technology, if not the current market. — Expressing a nuanced or specific opinion.
Register: neutral. Perfect for showing you have a detailed understanding. It allows you to agree with one part of an idea (the technology) while disagreeing with another (the market).
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Complete the sentences with words from the box. One word is extra.
Word bank
01For beginners, understanding blockchain technology can be a very learning curve.
02Many investors buy gold to their bets against inflation and stock market volatility.
03When the price of that particular coin soared, it seemed like everyone was jumping on the .
04Investing in new, unproven cryptocurrencies is considered a strategy, but the potential profits can be enormous.
05She decided to her investment when its value tripled, rather than waiting to see if it would go even higher.
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A personal take on crypto investing
The following is a short opinion piece from an amateur investor reflecting on their experience with the world of cryptocurrency.
Read the passage below, then answer the comprehension questions.
A few years ago, it felt like everyone I knew was suddenly a crypto expert. Watching friends post about their gains, it was tempting to jump on the bandwagon. The reality, however, involved a steep learning curve. Understanding blockchain, wallets, and exchanges was definitely more complex than just downloading an app. If I had listened to my friend back in 2015, I would probably be living on a beach right now instead of writing this. But hindsight is easy. For every success story, there are countless others who lost significantly. It's a classic high-risk, high-reward scenario. Some people try to hedge their bets by diversifying, while others go all-in on a single coin, hoping for a massive payout. The hardest part, it seems, is knowing the right moment to cash out before the market inevitably turns. It's clearly not for the faint of heart.
01What was the author's main challenge when first considering cryptocurrency?
Sample answerThe author's main challenge was the steep learning curve and the complexity of understanding the technology behind it, like blockchain and wallets.
02What hypothetical situation does the author describe using a mixed conditional?
Sample answerThe author imagines that if they had invested in 2015, they would probably be retired and living on a beach now.
03According to the passage, what is one strategy investors use to manage risk?
Sample answerInvestors try to hedge their bets by diversifying their investments instead of putting all their money into one asset.
04What can you infer about the author's overall attitude towards crypto investing?
Sample answerThe author's attitude is cautious and realistic. They acknowledge the potential for great rewards but emphasize the high risks and difficulty, suggesting it isn't suitable for everyone.
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Discuss these questions with a partner. Try to use vocabulary from the lesson.
- Some argue that governments should heavily regulate cryptocurrencies to protect consumers from volatility, while others believe regulation stifles innovation. Where do you stand on this issue, and what regulatory challenges do you think are most paramount in your country?
- Considering the idea of 'jumping on the bandwagon', have you ever felt social pressure to invest in something popular? How do you personally evaluate whether a high-risk, high-reward opportunity is worth pursuing, or if it's wiser to hedge your bets with safer options?
- Given the 'steep learning curve' of cryptocurrencies, what role should schools and banks play in educating the public to ensure financial inclusion if this technology becomes mainstream? From an investor's perspective, what factors would signal the right moment to 'cash out'?