1. Bruno asks Alice if she can give him a _____________ of what cryptocurrencies are.
2. Cryptocurrencies are __________________ digital currencies without a central bank.
3. Bitcoin is controlled by the users cutting out the ___________/ __________.
4. When paying for something, you will receive a Bitcoin address. You then have to add the ____________ to the network.
5. The blockchain is a type of electronic _____________, or record book.
6. Bitcoin cannot be ______________ or hacked.
7. Another big disadvantage of Bitcoin is its _____________.
8. Cryptocurrencies could _____________ the world of finance in the same way that email and social media have changed how we communicate.
KEY
1. breakdown
breakdown: a list of all the separate parts of something. Sp. desglose. E.g. First, let's look at a breakdown of the costs. Please provide us with a breakdown of expenditure by department.
2. decentralised
3. middle man
4. transaction
5. ledger
ledger: a book or electronic document in which a bank, a business, etc. records the money it has paid and received. Sp. libro de contabilidad
E.g.
to enter figures in the purchase/sales ledger
6. counterfeited
counterfeited: made to look exactly like something else, in order to deceive people. Sp. Falsificado
7. volatility
8. revolutionise
Script:
Track 022
Bruno: I’ve been trying to get my head around Bitcoin and crypto-currency but I find it all so confusing. Could you give me a breakdown of what they are and how they work, in simple terms?
Alice: I’ll do my best.
Bruno: OK, so let’s start with the obvious question – what is it exactly?
Alice: Well, Bitcoin is a cryptocurrency, a form of electronic cash.
Bruno: Well, I know that much.
Alice: Good. So you are aware then that cryptocurrencies are decentralised digital currencies without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Bruno: You’ve lost me there.
Alice: OK, let me rephrase that. Basically they’re internet-based currencies but outside of the control of banks and international currencies.
Bruno: OK, right. Is that good?
Alice: Well, yes, in theory. The idea is that Bitcoin is controlled by the users and that it cuts out the middle man.
Bruno: I’m sorry. What do you mean by ‘cuts out the middle man’? I don’t know that term.
Alice: In this context it means that you are not paying fees to banks or other financial services when you buy and sell or transfer money.
Bruno: Right. I like the sound of that. So how does it work? What I mean is: how can I get it?
Alice: Well, you can start by installing a wallet on your computer.
Bruno: A wallet? I’m afraid I don’t follow.
Alice: Well, put simply, it’s a piece of software on your computer that allows you to send, receive or transfer Bitcoin. It’s literally an electronic wallet where you keep your Bitcoin.
Bruno: OK. So how do people buy and sell with Bitcoin?
Alice: To pay for something, you log into your wallet. You receive a Bitcoin address, sometimes in the form of a QR code and you enter how much Bitcoin you want to send. You then add the transaction to the network.
Bruno: I am sorry, I didn’t quite get that last part. You said something about QR codes, right?
Alice: Yes, what I mean by that is those funny square codes that look a bit like barcodes. A lot of businesses use them these days.
Bruno: Oh yes, I know what you mean. OK, I get that part. But I do have another question. If Bitcoin is decentralised like you say, who administers it and verifies these transactions?
Alice: All transactions are tracked on the blockchain, which, to put it in a nutshell, is a type of electronic ledger, or record book.
Each transaction is verified by volunteers, often called ‘miners’. I won’t go into details but Bitcoin miners can also earn Bitcoin by doing this work.
Bruno: OK. And one last question. What are the advantages and disadvantages of Bitcoin and other cryptocurrencies?
Alice: Well, apart from the ones I have already mentioned, it is very secure and resistant to online fraud because of its cryptography, and it cannot be counterfeited or hacked.
Having said that, it is a target for online scammers, so like anything involving money online, you do need to be careful.
The other big disadvantage at the moment is its volatility. You have probably seen on the news that the real world monetary value of Bitcoin has gone up and done a lot over the last few years.
Bruno: So what you are saying is it’s a bit like the stock market and if you invest in Bitcoin, you could lose money.
Alice: Exactly. Like everything in life, there is an element of risk involved, but many experts think it and other cryptocurrencies could revolutionise the world of finance in the same way that email and social media have changed how we communicate.
Bruno: Thanks, Alice. I’ll certainly look into it more now.
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