Virtual currencies like Bitcoin have sparked continuous debate and controversy since their inception. Their highly volatile prices deter many investors but attract others who see potential in this digital wave. Tesla founder Elon Musk is a prominent advocate of virtual currencies—his tweets frequently influence their market fluctuations.
In March 2021, Musk announced Tesla would accept Bitcoin as payment for vehicles, though he later reversed the decision, citing concerns over Bitcoin mining's environmental impact due to excessive fuel consumption. Despite this, his involvement highlights the growing influence of virtual currencies.
Bitcoin surged earlier this year, crashed mid-year, then rebounded post-pandemic. Notably, El Salvador became the first country to adopt Bitcoin as legal tender in September, further cementing its global significance.
Cryptocurrency vs. Virtual Currency
"Rising interest in cryptocurrencies has reignited central banks’ digital currency ambitions." (CNBC, 11/12/21)
The roots "cur-" and "curr-" mean "run" or "flow," reflecting how currency circulates. Related terms include:
- Current (adj) – Present
- Cursor (n) – The moving pointer on a screen
- Concur (v) – To happen simultaneously
The "crypto-" prefix means "hidden" or "encrypted." Example:
"The museum curator left a cryptic message before vanishing."
Since virtual currencies are intangible, virtual (adj) describes them. Other uses:
- Virtual Reality (VR) – Simulated environments
- Virtually (adv) – Nearly (e.g., "He was virtually broke after stock losses.")
👉 Why Bitcoin’s volatility matters
Cold vs. Hot Wallets in Transactions
Bitcoin mining relies on computational power ("hash rate"), demanding massive electricity. China once hosted ~50% of global mining operations, but government bans forced miners to relocate overseas.
"Bitcoin’s price plummeted after China banned cryptocurrency mining."
Security remains a critical concern. Common storage methods include:
- Hot Wallet – Online, internet-connected (prone to hacking)
- Cold Wallet – Offline (e.g., USB devices; more secure)
Terms like mobile/digital wallets surged during COVID-19 for contactless transactions.
Example:
"Banks in Taiwan charge $15–30 NTD per domestic transaction."
Major corporations, including Apple’s Tim Cook and Nike, now engage with crypto, signaling broader future adoption.
FAQs
Q: Why did Tesla stop accepting Bitcoin?
A: Due to environmental concerns linked to Bitcoin’s energy-intensive mining process.
Q: What’s the safest way to store Bitcoin?
A: Cold wallets (offline storage) offer higher security than hot wallets.
Q: Which country adopted Bitcoin as legal tender first?
A: El Salvador, in September 2021.
👉 Future of cryptocurrency transactions
TOEIC Practice Questions
1. Cryptocurrency miners \_\_\_\_\_ ~30,000 tons of e-waste yearly.
- (B) generate ✅
2. ATMs let users \_\_\_\_\_ transactions without visiting banks.
- (D) to complete ✅