Elon Musk, the visionary founder and CEO of Tesla and SpaceX, has been named Time magazine’s 2021 Person of the Year—an honor recognizing individuals who have significantly shaped the world’s events. The feature highlights Musk’s groundbreaking work in electric vehicles, space exploration, and his bold vision for human colonization of Mars. But it also spotlights his influential role in the world of digital currency, particularly his vocal support for cryptocurrency and its growing global impact.
From Bitcoin price swings to national adoptions and environmental debates, cryptocurrency remains one of the most talked-about financial innovations of the decade. And few figures have influenced its trajectory more than Elon Musk. His tweets alone have sent major cryptocurrencies soaring or plunging overnight. In early 2021, he even announced that Tesla would accept Bitcoin as payment for vehicles—a move that electrified the market—though the company later reversed course due to environmental concerns over mining energy use.
Despite the volatility, interest in digital assets continues to surge. Bitcoin soared to record highs in late 2021 after a mid-year correction, while El Salvador made history by adopting Bitcoin as legal tender in September—marking a pivotal moment for global crypto adoption. With governments, corporations, and everyday investors watching closely, the future of money may be more digital than ever.
Understanding Cryptocurrency and Virtual Currency
The rise of cryptocurrencies has not only disrupted traditional finance but also reignited central banks’ ambitions to develop their own digital currencies.
“Rising interest in cryptocurrencies has reignited central banks’ digital currency ambitions.” – CNBC
But what exactly do these terms mean?
The word currency comes from the Latin root cur- or curr-, meaning “to run” or “flow.” Just like a current flows in a river, money is meant to circulate. This root appears in many English words:
- Current – happening now
- Cursor – the moving pointer on your screen
- Concur – to happen at the same time
Meanwhile, crypto comes from the Greek kryptos, meaning “hidden” or “secret.” So cryptocurrency literally means “hidden currency”—a reference to its encrypted, secure nature.
“The museum curator left a cryptic message on his desk before he vanished.”
Here, cryptic means mysterious—another use of the same root.
Since these currencies aren’t physical, they’re often called virtual currency. The term virtual means “not physically real but functionally real.” You’ve probably heard of VR—short for virtual reality—a simulated digital environment. In fact, Facebook’s rebranding to Meta signals a major corporate bet on the metaverse, a fully immersive virtual world where digital ownership (including crypto) will play a central role.
Interestingly, in contexts like business or exams such as TOEIC, virtual can also mean “almost” or “nearly”:
“After losing millions in the stock market, Mr. Smith is virtually broke.”
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Hot Wallets vs. Cold Wallets: Securing Your Digital Assets
To understand how cryptocurrency works, you need to know about mining and storage.
Bitcoin relies on mining, a process where powerful computers solve complex mathematical problems to validate transactions and add them to the blockchain. Those who perform this work are called miners, and they require massive amounts of electricity—making cheap, stable power essential.
As a result, regions like Sichuan, Inner Mongolia, and Xinjiang in China once hosted nearly 50% of global mining operations. However, in 2021, the Chinese government banned cryptocurrency mining, citing environmental concerns and energy waste. This led to a mass exodus of miners selling equipment and relocating abroad—a shift that reshaped the global mining landscape.
“The price of Bitcoin plummeted after China announced a ban on cryptocurrency mining.”
But beyond mining, security is a major concern. Where do you store your crypto?
Most users rely on digital wallets—software applications that let you send, receive, and manage your assets. These wallets come in two main types:
🔹 Hot Wallets (Online)
- Connected to the internet
- Easy to access for daily transactions
- Higher risk of hacking
Hot wallets are convenient but vulnerable. Major exchanges have suffered breaches in the past, leading to massive losses.
🔹 Cold Wallets (Offline)
- Stored on physical devices like USBs
- Not connected to the internet
- Much more secure
Because cold wallets are offline, they’re far less susceptible to cyberattacks—ideal for long-term storage.
Wallet types include:
- Mobile wallet
- Digital wallet
- Contactless mobile wallet – increasingly popular since the pandemic for touch-free payments
Note: Your crypto isn’t actually in the wallet. Instead, the wallet holds your private key—a secret code that proves ownership of funds recorded on the blockchain.
The verb transact means to carry out a financial exchange, and its noun form is transaction:
“In Taiwan, banks usually charge customers $15–30 NTD per domestic transaction.”
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The Growing Mainstream Acceptance of Crypto
Elon Musk isn’t alone in embracing digital currency. Tim Cook, CEO of Apple, revealed he owns cryptocurrency. Nike has filed trademarks for virtual sneakers and apparel—hinting at a future where digital goods are bought with crypto in virtual worlds.
Even traditional institutions are taking notice. Central banks worldwide are exploring central bank digital currencies (CBDCs), while fintech platforms make buying and using crypto easier than ever.
Frequently Asked Questions (FAQ)
Q: What is the difference between cryptocurrency and virtual currency?
A: Cryptocurrency refers specifically to decentralized, blockchain-based digital money like Bitcoin or Ethereum. Virtual currency is a broader term that includes any digital form of value, whether centralized (like game tokens) or decentralized.
Q: Why did Elon Musk influence Bitcoin’s price?
A: Musk has over 100 million Twitter followers. When he tweets about Dogecoin or Bitcoin—even jokingly—it creates instant market reactions due to his influence and Tesla’s prior investments.
Q: Is cryptocurrency legal everywhere?
A: No. While countries like the U.S. and Japan regulate it, others like China ban trading and mining. El Salvador is the first nation to adopt Bitcoin as legal tender.
Q: Can I lose my cryptocurrency?
A: Yes—if you lose access to your private key or fall victim to fraud. Unlike banks, most crypto transactions are irreversible.
Q: What does “blockchain” mean?
A: Blockchain is a decentralized digital ledger that records all transactions across a network. It ensures transparency and security without a central authority.
Q: Are digital wallets safe?
A: Cold wallets are very secure. Hot wallets are convenient but riskier—especially if used on compromised devices or networks.
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Final Thoughts
From Mars missions to redefining money, Elon Musk continues to push boundaries. His endorsement of cryptocurrency has brought digital assets into mainstream conversation—sparking debate, innovation, and investment worldwide.
As technology evolves and more industries adopt blockchain solutions, understanding key terms like cryptocurrency, mining, wallet, and transaction becomes essential—not just for investors, but for anyone navigating the modern digital economy.
Whether you're learning English for business, travel, or exams like TOEIC, grasping these concepts gives you an edge in a rapidly changing world.
The era of digital finance is here. Are you ready?