The Impact of Cryptocurrencies on Traditional Financial Systems - TOEFL Writing Academic Discussion Practice Test

In the TOEFL iBT^® exam, the writing test assesses a candidate's ability to write academically, where they are required to successfully integrate the knowledge into their work and organize the ideas coherently. The two Writing Sections, such as Academic Discussion and Integrated Writing, make up the Writing Section.

In this practice test on 'The Impact of Cryptocurrencies on Traditional Financial Systems', you will hear a lecture on a certain subject from a professor in the Academic Discussion activity. After that, you'll take part in a conversation where you'll have to voice your opinion and provide solid justification for it

The best method to get ready for this part of the test is to practice on tests specifically made for the Academic Discussion format. Let's start your study with our "The Impact of Cryptocurrencies on Traditional Financial Systems"-themed TOEFL Academic Discussion practice exam.

Writing Instructions:

• You will read a discussion related to an academic topic in class where your classmates have written their opinions on the said topic.
• You have 10 minutes to prepare and write your personal opinion on the academic topic. 
• Try to answer the question based on the discussion. You can also take ideas from the opinions posted by your classmates.
• There is no maximum word limit. However, an effective response should be a minimum of 100 words.
• Your response will be judged on the quality and clarity of your writing with well-supported reasons.

Instruction: Your professor is teaching a class on economics. Write a post responding to the professors question. In your response, you should

1. express and support your personal opinion
2. make a contribution to the discussion in your own words.

An effective response will contain at least 100 words. You have ten minutes to write.

Professor: As we explore the topic of cryptocurrencies, I want to hear your thoughts on their impact on traditional financial systems. Do you believe that cryptocurrencies will eventually replace traditional financial systems, or will they exist together with them? Why?

Charlotte: I think cryptocurrencies will eventually replace traditional financial systems. Cryptocurrencies offer a way of doing transactions that is not controlled by one central authority. This can cut down on fraud. It also builds trust. They also provide financial services to people who don't have access to banks, particularly in developing countries. As technology gets better and more people start using cryptocurrencies, traditional financial systems might become old.

George: I believe cryptocurrencies will exist together with traditional financial systems rather than replace them. While cryptocurrencies have many benefits, they also come with big risks. They can be unstable. They also face rules-related issues. Traditional financial systems have built trust and stability over a long time, which isnt easy to replace. I see a future where both systems work together, with cryptocurrencies offering alternative financial options alongside traditional banking.

Before delving into sample responses, let us examine the parameters of a strong TOEFL score!

Sample Response for the Academic Discussion Writing Task on The Impact of Cryptocurrencies on Traditional Financial Systems

Below are the two responses for the Academic Discussion Writing question where one of them showcases a mid-level proficiency while the other exhibits a high level of skills. Through examining the distinctions, you will acquire valuable insights into the components that lead to attaining an exceptional score in the Writing section.

Score 3 Response

I think cryptocurrencies will exist together with traditional financial systems. Cryptocurrencies have many benefits, like being decentralized and helping people without banks. But they also have problems like being unstable and facing rules issues. Traditional financial systems have been around for a long time and people trust them. It's not easy to replace that trust. I think both systems can work together. Cryptocurrencies can offer new options while traditional banks provide stability. This way, we can have the best of both worlds. (Word Count - 82)

Rater’s Comment

This response is adequate but lacks the depth and clarity of a higher-level response. The student correctly identifies the benefits of cryptocurrencies, such as decentralization and financial inclusion, but the explanation is somewhat superficial. The mention of problems like instability and regulatory issues is valid but not elaborated upon. Additionally, the response contains grammatical errors, such as "facing rules issues" instead of "facing regulatory issues" and redundancy in "helping people without banks." The argument that traditional financial systems have built trust over time is a good point, but it could be better developed. The response is generally comprehensible but lacks the sophistication and detailed reasoning expected at a higher level. Overall, while the response addresses the prompt and presents a somewhat clear argument, it falls short in terms of depth, coherence, and grammatical accuracy.

Score 5 Response

While Charlotte raises valid points about the potential of cryptocurrencies to revolutionize financial transactions, I align more with George's perspective that cryptocurrencies will coexist with traditional financial systems. Cryptocurrencies indeed offer decentralized control and can provide financial services to the unbanked, which is a significant advantage. However, the volatility and regulatory challenges associated with cryptocurrencies cannot be overlooked. Traditional financial systems have established a level of trust and stability over decades, which is not easily replicable. Moreover, governments and financial institutions are likely to adapt and integrate blockchain technology into their existing frameworks, creating a hybrid system. This integration can harness the benefits of both worlds, offering stability and innovation simultaneously. Therefore, I foresee a future where cryptocurrencies and traditional financial systems complement each other rather than one replacing the other. (Word count - 131 words)

Rater’s Comment

This response merits a high score due to its clear and well-structured argument. The student effectively acknowledges Charlotte's points about the advantages of cryptocurrencies, such as decentralized control and financial inclusion for the unbanked. However, the student also highlights the significant drawbacks, including volatility and regulatory challenges, which are crucial considerations in this debate. The response is well-organized, beginning with an acknowledgment of the opposing viewpoint and then presenting a reasoned argument for coexistence. The student also introduces the idea of a hybrid system, where traditional financial institutions might integrate blockchain technology, thus offering a balanced perspective. The language is formal and appropriate for an academic discussion, and the response is free from major grammatical errors. Overall, the response is coherent, concise, and effectively contributes to the ongoing discussion, making it a strong example of a high-level response.

Strategies for Taking the Academic Discussion Writing Task 

The TOEFL Academic Discussion Writing Task may seem difficult and can cause you to become nervous. But don't feel scared! You can do this task effectively by incorporating a few vital strategies to ace your proficiency in academic writing.

• It is important to have a detailed examination of the question which is necessary to comprehend both the main idea and the setting for that specific question. It is necessary to consider the provided guidelines, such as providing a response that addresses all relevant angles.
• Finding the key arguments is made simpler by dissecting the question into its constituent parts. It's critical to successfully manage each component at the same time while organising the response.
• Before attempting to write the answer, always plan and come up with ideas and use them as examples so that you can showcase a range of perspectives.
• Making an outline ensures that the response is cohesive and the concepts are well-organized.
• Giving evidence or statistics to support assertions and points of view demonstrates your grasp of the subject.
• Avoid using any slang or informal language; instead, stick to professional language and academic terminologies, paying close attention to grammar and punctuation.

Finally, it's time for you to shine! Attempt the practice question and share your response in the comments! 

Our TOEFL experts are more than willing to provide valuable feedback which would help you achieve your target score!  Let's improve your writing skills together!

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