Hi everyone. Today is July 13, 2022. Well, you have probably heard about the drop in the price of crypto assets. It began early in the year and has picked up some speed recently. Bitcoin, to name just one example, has fallen from $68,000 to below $20,000.
I think that the most important English language lesson here is that we really need to stop referring to crypto assets like Bitcoin as “cryptocurrency”. After all, events like this recent drop in price demonstrate once again that there is no stability or store of value, in Bitcoin and other similar crypto tools. These are not cryptocurrencies, they are crypto assets.
Alright, let’s get to the vocabulary. Here are another few words in English that you will find helpful if you are going to read or talk about crypto assets and the recent drop in prices.
Vocabulary
- Decentralized Finance: Decentralized finance refers to financial applications run by smart contracts on a blockchain, which do not rely on intermediaries such as brokerages, exchanges, or banks.
- So, here is an important note: Decentralized finance is often shortened and referred to simply as “DeFi”. Get it? Decentralized Finance = DeFi. Practice that pronunciation: De Fi
- Stablecoin: A stablecoin is a crypto asset that is ideally backed by a mix of one or more fiat currencies, such as the US dollar, or maybe mixed with other reasonably stable assets. Stablecoin.
- Token: According to the brokerage firm CoinBase, “A token often refers to any cryptocurrency besides Bitcoin and Ethereum, even though they are also technically tokens. Because Bitcoin and Ethereum are by far the biggest two cryptocurrencies, it’s useful to have a word to describe the universe of other coins.”
- Another word you might hear with virtually the same meaning is “altcoin.” A token.
Discussion
Well, the language used around the topic of crypto assets is varied and it is evolving. You will hear expressions like “crypto coin”, “stablecoin”, “cryptocurrency”, “crypto investment products”, “crypto tokens”, and so on, and so on. In can get confusing. A good shortcut you can use is to just say “crypto”. Crypto is an umbrella expression that in some ways covers all of these concepts. Crypto.
Two other we used in this lesson are the verb “plummet”. To plummet means to fall suddenly, and far. Also, the word “slump”. “To slump” is not as strong as “to plummet”, but which also means to fall, or to slow down. Slump can be used as a verb or a noun: “to slump”, “a slump”. For example, “There has been a serious slump in the price of crypto assets recently.” Slump.
Conclusion
If you want to practice English vocabulary related to crypto assets, you could also review our podcast on Digital Payments.
You can also contact me here if you are interested in taking private conversation classes with me. I will help you become fluent in discussing the economic news of the day in English. I currently have space for 2 new students, so if having weekly conversation classes about the economy interest you, you can visit the web page to learn more.
Soon to come too, is the video seminar “How to give great presentations in English”. This class will help you express yourself in English as best you can by applying all kinds of supplementary techniques that will boost your communication, without having to boost your vocabulary or grammar.
Remember these words from today’s lesson.
Decentralized Finance (DeFi) / Token / Stablecoin / Plummet / Plunge / Crypto / Crypto asset.
Okay. That’s it for now. I will be back next week with another English lesson for economists. See you then.
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Further reading:
Definition of “Token”. https://www.coinbase.com/es/learn/crypto-basics/what-is-a-token
A brief history of Bitcoin crashes and bear markets: 2009–2022 https://cointelegraph.com/news/a-brief-history-of-bitcoin-crashes-and-bear-markets-2009-2022
DeFi risks and the decentralisation illusion https://www.bis.org/publ/qtrpdf/r_qt2112b.htm
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