Explore the world’s weakest currencies in 2025 - from Lebanon’s collapse to Vietnam’s strategic devaluation - and what these exchange rates reveal about global economics.
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Money talks, but some currencies whisper so quietly you need a magnifying glass to hear them. In the grand theatre of global finance, not all currencies are created equal, while some strut around like peacocks (looking at you, Kuwaiti Dinar), others shuffle about with the confidence of a wet paper bag.
The Lebanese Pound (LBP) currently holds the unfortunate distinction of being the world's weakest currency in 2025, with an exchange rate so low that one U.S. dollar equals approximately 89,500 Lebanese pounds. To put this in perspective, you'd need a small suitcase to carry the equivalent of $100 in Lebanese pounds, assuming you could find enough physical notes.
Currency weakness isn't just about having a lot of zeros after the decimal point. It reflects a complex web of economic factors, including inflation rates, political stability, monetary policy decisions, and investor confidence. This guide on the world's weakest currencies in 2025, explores the economic stories behind their struggles and what it means for the countries (and the people) who use them.
Top 10 weakest currencies in the world (2025)
Here's the lineup of currencies that make your wallet feel surprisingly heavy when travelling abroad:
Rank | Currency | Country | Approx. units per USD |
---|---|---|---|
1 | Lebanese Pound (LBP) | Lebanon | 89,500-90,000 LBP |
2 | Iranian Rial (IRR) | Iran | 800,000-890,000 IRR |
3 | Vietnamese Dong (VND) | Vietnam | 25,960-26,100 VND |
4 | Laotian Kip (LAK) | Laos | 21,500-21,600 LAK |
5 | Indonesian Rupiah (IDR) | Indonesia | 15,400 IDR |
6 | Uzbekistani Som (UZS) | Uzbekistan | 12,700-12,800 UZS |
7 | Syrian Pound (SYP) | Syria | 13,000 SYP |
8 | Guinean Franc (GNF) | Guinea | 8,600 GNF |
9 | Paraguayan Guarani (PYG) | Paraguay | 7,800 PYG |
10 | Malagasy Ariary (MGA) | Madagascar | 4,600 MGA |
Exchange rates are approximate and fluctuate daily. Data compiled from multiple financial sources as of July 2025.
What makes a currency weak?
Before we roll our eyes at long strings of zeros, let’s get clear on what actually drives currency weakness.
Exchange rates show how much of one currency you need to buy another, usually measured against the U.S. dollar. But a low exchange rate isn’t automatically a red flag. Just like shoe sizes, bigger numbers aren’t necessarily worse, they’re just different.
The real reasons a currency weakens?
- Persistent inflation that eats away at value
- Short-term monetary policies that undermine long-term confidence
- Trade imbalances and shrinking foreign reserves
- Political instability that rattles investor trust
When investors lose faith, money moves fast, and exchange rates feel the impact. In short, weak currencies aren’t a punchline, they’re a signal of deeper economic tension.
Country spotlights - case studies behind the weakest currencies
Lebanon | A financial collapse without precedent
Lebanon’s currency crisis is a case study in how not to run an economy. As of mid-2025, the Lebanese pound trades at over 89,500 LBP per USD, making it one of the weakest currencies in the world.
The collapse stemmed from a banking sector that functioned like a state-sponsored Ponzi scheme: banks attracted deposits with sky-high interest rates, only to lend most of those funds to a debt-laden government. When confidence evaporated, the system imploded. Add in the 2019 mass protests and the devastating 2020 Beirut port explosion, and the result was economic freefall.
Today, Lebanese citizens navigate a surreal economy where ATMs limit withdrawals to tiny amounts, and many businesses have shifted to unofficial dollar pricing. A shadow economy thrives alongside the official one, proof that when trust in institutions fails, people find their own workarounds.
Iran | Sanctions, inflation, and isolation
The Iranian rial now trades at over 1,000,000 IRR per USD (yes, that's six zeros). Sanctions have cut Iran off from the global financial system, leaving its oil-rich economy unable to fully monetise its most valuable resource.
It's like owning a garage full of Ferraris with no keys to drive them. In response, Iran has attempted to bypass sanctions with crypto experiments and barter agreements, but none have stabilised the currency.
Inflation routinely exceeds 40%, and as a result Iranians have turned to gold, property, and U.S. dollars to preserve what little value they can. In a country known for its resilience, the rial’s collapse remains a stark reminder of the long-term costs of economic isolation.
Vietnam | Weak by design, not disaster
The Vietnamese dong trades at around 26,000 VND per USD, but that doesn’t signal a crisis, it actually reflects deliberate policy. Vietnam maintains a weaker currency to keep exports competitive, a strategy known as competitive devaluation.
This has helped transform Vietnam into a global manufacturing hub, attracting companies looking to diversify away from China. It's like running a permanent sale on your national output - foreign buyers love the prices, and Vietnamese factories stay busy.
The challenge lies in balance. The government works to avoid the inflation traps that have plagued other countries on this list, proving that not all weak currencies come from failure, some are tools of long-term economic strategy.
Laos | Trapped by debt and dependency
The Laotian kip now trades at around 21,800 LAK per USD, weighed down by inflation above 25% and a debt-to-GDP ratio over 125%. Much of that debt is owed to China, tied to major infrastructure projects that haven’t yet paid off economically.
Laos is a landlocked nation with limited industrial capacity and high import dependence, leaving its currency exposed whenever commodity prices shift. With little monetary wiggle room, the kip’s trajectory reflects deeper economic vulnerabilities.
Sierra Leone | A currency redefined, but still fragile
In 2022, Sierra Leone redenominated its currency, removing three zeros from the leone to simplify transactions. But even the new leone remains weak due to decades of disruption: civil war, the Ebola outbreak, COVID-19, and swings in diamond prices.
This is an economy that's faced shock after shock, and recovery is slow. The mining sector, especially diamonds, still dominates, leaving the leone vulnerable to commodity price drops.
Healthcare challenges and limited infrastructure add even more pressure, reducing productivity and increasing fiscal strain. The leone’s weakness tells the story of a country rebuilding piece by piece, with its currency reflecting both the past and the uphill path ahead.
Why some countries choose to keep their currency weak
Believe it or not, some countries actually prefer their currencies to be weaker - and for good economic reasons. It's counterintuitive, like preferring to drive in the slow lane, but the strategy can be remarkably effective.
Export competitiveness represents the primary motivation. A weaker currency makes domestic products cheaper for foreign buyers, essentially providing a permanent discount. German cars might be excellent, but if Vietnamese motorcycles cost 70% less due to currency differences, guess which ones developing countries will buy?
Countries like China famously maintained an artificially weak currency for decades, helping fuel their manufacturing boom. The strategy worked so well that other countries accused them of "currency manipulation" - the economic equivalent of being too good at a game and getting accused of cheating.
However, this approach carries significant risks. Import costs rise dramatically, making everything from oil to smartphones more expensive for domestic consumers
Long-term currency weakness can also trigger capital flight, where wealthy citisens move their money abroad. When your own citisens don't trust your currency, convincing foreigners becomes considerably more challenging.
Does a weak currency mean a weak economy?
We’ve established that a weak currency doesn't automatically signal economic disaster,sometimes it's just a reflection of different economic structures and historical circumstances.
Indonesia and Vietnam serve as the best examples of countries with numerically weak currencies but relatively strong economies. Both nations have achieved consistent growth, reduced poverty, and built increasingly diversified economies despite their currencies requiring calculators to count properly.
The key lies in purchasing power parity - what matters isn't how many zeros follow your currency symbol, but what those zeros can actually buy. A Vietnamese worker earning 10 million dong monthly isn't necessarily poor if that amount provides a comfortable living standard within the Vietnamese economy.
The real measure of economic health involves factors like employment rates, productivity growth, infrastructure development, and living standards. A country with a weak currency but growing wages, improving infrastructure, and expanding opportunities may be economically healthier than a nation with a strong currency but declining industries and rising unemployment.
What are the consequences of a weak currency?
In essence, a weak currency makes daily life more expensive, with rising prices on imports like food, fuel, and electronics. Added into the mix, Inflation erodes savings, and capital flight accelerates as people move their money into more stable currencies.
Over time, foreign currencies may replace the local one in everyday use, limiting government control. Internationally, weak currencies hurt credit ratings and investor confidence, reinforcing instability.
Final thoughts
Currency weakness is more than just numbers, it’s a signal. We’ve learnt above that it can both expose deep economic flaws or reflect deliberate strategies for growth. Lebanon and Iran highlight how instability and isolation can erode value fast, while Vietnam shows how weakness can fuel exports and development.
These disparities then shape the country’s trade, capital flows, and financial stability worldwide, causing a wider ripple effect. In a global economy, no currency moves alone; each affects the rest. And behind every weak currency are real people navigating inflation, opportunity, or uncertainty.
NEWS AND UPDATES

What's driving the crypto market this week? Get fast, clear updates on the top coins, market trends, and regulation news.
Welcome to Tap’s weekly crypto market recap.
Here are the biggest stories from last week (8 - 14 July).
💥 Bitcoin breaks new ATH
Bitcoin officially hit above $122,000 marking its first record since May and pushing total 2025 gains to around +20% YTD. The rally was driven by heavy inflows into U.S. spot ETFs, over $218m into BTC and $211m into ETH in a single day, while nearly all top 100 coins turned green.
📌 Trump Media files for “Crypto Blue‑Chip ETF”
Trump Media & Technology Group has submitted an S‑1 to the SEC for a new “Crypto Blue Chip ETF” focused primarily on BTC (70%), ETH (15%), SOL (8%), XRP (5%), and CRO (2%), marking its third crypto ETF push this year.
A major political/media player launching a multi-asset crypto fund signals growing mainstream and institutional acceptance, and sparks fresh conflict-of-interest questions. We’ll keep you updated.
🌍 Pakistan launches CBDC pilot & virtual‑asset regulation
The State Bank of Pakistan has initiated a pilot for a central bank digital currency and is finalising virtual-asset laws, with Binance CEO CZ advising government efforts. With inflation at just 3.2% and rising foreign reserves (~$14.5b), Pakistan is embracing fintech ahead of emerging-market peers like India.
🛫 Emirates Airline to accept crypto payments
Dubai’s Emirates signed a preliminary partnership with Crypto.com to enable crypto payments starting in 2026, deepening the Gulf’s commitment to crypto-friendly infrastructure.
*Not to take away from the adoption excitement, but you can book Emirates flights with your Tap card, using whichever crypto you like.
🏛️ U.S. declares next week “Crypto Week”
House Republicans have designated 14-18 July as “Crypto Week,” aiming for votes on GENIUS (stablecoin oversight), CLARITY (jurisdiction clarity), and Anti‑CBDC bills. The idea is that these bills could reshape how U.S. defines crypto regulation and limit federal CBDC initiatives under Trump-aligned priorities.
Stay tuned for next week’s instalment, delivered on Monday mornings.

Explore why Bitcoin and the crypto market are worth $2.1 trillion and why skepticism still lingers among Americans in this deep dive.
Decoding the disconnect: America's cautious approach to crypto
Bitcoin and the broader crypto market have soared to a staggering $2.1 trillion in value, but why does skepticism still linger among so many Americans?
Despite increasing adoption, digital currencies remain shrouded in doubt, revealing a significant trust gap that continues to challenge the industry. As cryptocurrencies become more woven into everyday financial transactions, closing this trust deficit is essential for ensuring sustained growth and mainstream acceptance.
In this article, we'll dive into the key reasons behind this persistent mistrust, uncover the expanding real-world uses of digital assets, and explore how education and technological advancements can help bridge the confidence gap. Keep in mind, the data presented draws from multiple studies, so some figures and age groupings may vary slightly.
A Look at the Current State of Crypto Trust
To truly understand cryptocurrency adoption and the accompanying trust issues, it’s essential to examine the latest statistics and demographic data. This section breaks down public sentiment toward crypto and provides a snapshot of its user base.
General Public Sentiment
Percentage of Americans Who Own Cryptocurrency
Cryptocurrency adoption has seen slow but steady growth over the years. According to surveys conducted by Pew Research Center in 2021 and 2023, 17% of Americans have invested in, traded, or used cryptocurrency, up slightly from 16% in 2021.
While estimates vary, Security.org places this figure higher, estimating that roughly 40% of the U.S. population - around 93 million adults - own some form of cryptocurrency.
Both studies agree that younger generations are driving much of this growth, with 30% of Americans aged 18-29 reporting they have experience with crypto.
Trust Levels in Cryptocurrency
Despite rising adoption rates, trust in cryptocurrency remains a significant hurdle. Pew Research Center found that 75% of Americans have little or no confidence that cryptocurrency exchanges can safeguard their funds. Similarly, a recent report by Morning Consult shows that 7 in 10 consumers familiar with crypto express low or no trust in it.
This contrasts the 31% who have some or high trust, or the 24% in the Pew study who are “somewhat” to “extremely” confident in cryptocurrencies.
Demographics of Crypto Adopters
- Age Groups
Cryptocurrency adoption trends reveal a distinct generational divide. According to the 2023 Morning Consult survey, Gen Z adults (ages 18-25) lead in crypto ownership at 36%, closely followed by Millennials at 30%.
These younger groups are also more inclined toward future investments, with 39% of Gen Z and 45% of Millennials planning to invest in crypto in the coming years. Over half of both generations view cryptocurrency and blockchain as the future, while a notable percentage (27% of Gen Z and 21% of Millennials) considered opening an account with a crypto exchange in the past year.
When compared to other asset classes, data from Bankrate’s 2021 survey reveals that younger Millennials (ages 25-31) favor real estate and stock market investments, while Baby Boomers have the least interest in cryptocurrency. Older Millennials (32-40) lean toward cash investments, with cryptocurrency’s appeal steadily declining with age.
Interestingly, the report also highlights gender differences, showing that 80% of women familiar with crypto express low confidence, compared to 71% of men, indicating a broader trust gap among female users.
- Income Levels
Contrary to common assumptions, cryptocurrency adoption is not confined to high-income individuals. The same Pew Research Center survey revealed that crypto ownership is relatively evenly spread across income brackets:
- 13% of those earning less than $56,600 annually own crypto.
- 19% of those earning between $56,600 and $169,800 own crypto.
- 22% of those earning over $169,800 own crypto.
This data suggests that while higher earners may be more inclined to own cryptocurrency, the appeal of digital assets spans various income levels.
- Educational Background
Education also plays a role in crypto adoption. A 2022 report by Triple-A found that the majority of crypto owners are “highly educated”:
- 24% of crypto owners have graduated from middle or high school.
- 10% have some vocational or college education.
- 39% are college graduates.
- 27% hold postgraduate degrees.
This shows that while those with some college education or a degree are more likely to own crypto, it is not exclusively a pursuit of the highly educated.
This demographic data paints a picture of cryptocurrency adopters as predominantly younger, spread across a range of income levels, and with diverse educational backgrounds. However, the trust gap between crypto and traditional financial systems remains a significant barrier to wider acceptance of digital assets.
Key Trust Barriers
To bridge the gap between cryptocurrency adoption and trust, it’s crucial to understand the major concerns fueling skepticism. This section explores these concerns and contrasts them with similar risks in traditional financial systems.
The Primary Concerns of Skeptics
Volatility
One of the most significant barriers to cryptocurrency adoption is its notorious volatility, particularly for investors seeking stable, long-term assets. Bitcoin, the most well-known cryptocurrency, symbolizes this risk.
In 2022, Bitcoin’s volatility was stark. Its 30-day volatility reached 64.02% in June, driven by broader economic uncertainty and market downturns, compared to the S&P 500’s much lower volatility of 4.71% during the same period.
Over the course of the year, Bitcoin’s price swung from a peak of $47,835 to a low of $18,490, marking a substantial 61% decline from its highest point in 2022. Factors such as rising interest rates, geopolitical tensions, and major crypto market disruptions, like the TerraUSD collapse and Celsius’ liquidity crisis, played a pivotal role.
This extreme volatility reinforces the perception of cryptocurrencies as high-risk investments.
However, traditional stock markets, while typically more stable than crypto, can also experience sharp fluctuations, especially in times of economic stress. For instance, the CBOE Volatility Index (VIX), which measures expected near-term volatility in the U.S. stock market, dropped by 23% to 28.71 on June 30, 2022, far below the 82.69 peak recorded during the early COVID-19 market turbulence in March 2020. This shows that even stock markets, generally seen as safer, can experience moments of intense volatility, particularly during global crises.
Additionally, when compared to the "Magnificent Seven" (a group of top-performing and influential stocks) Bitcoin’s volatility doesn't stand out as unusual. In fact, over the past two years, Bitcoin has shown less volatility than Netflix (NFLX) stock.
On a 90-day timeframe, NFLX had an average realized volatility of 53%, while Bitcoin’s was slightly lower at 46%. The reality is that among all S&P 500 companies, Bitcoin has demonstrated lower annualized historical volatility than 33 of the 503 constituents.
In October 2023, Bitcoin was actually less volatile than 92 stocks in the S&P 500, based on 90-day realized historical volatility figures, including some large-cap and mega-cap companies.
Security
Security concerns are another major hurdle in building trust with cryptocurrencies. Cryptocurrency exchanges and wallets have been targeted by numerous high-profile hacks and frauds, raising doubts about the safety of digital assets. It comes as no surprise that a study from Morning Consult found that 67% of Americans believe having a secure and trustworthy platform is essential to entering the crypto market.
While security threats in the crypto space are well-documented, traditional banking systems are not immune to fraud either. Federal Trade Commission data reveals that consumer fraud losses in the traditional financial sector hit a record high of $10 billion in 2023, marking a 14% increase from the previous year.
Although traditional banks have more safeguards in place to protect consumers, they remain vulnerable to attacks, showing that security is a universal challenge across both crypto and traditional finance.
Prevention remains key, which in this case equates to using only reliable platforms or hardwallets.
Regulatory Uncertainty
Regulatory ambiguity continues to be a critical barrier for both cryptocurrency investors and businesses. The evolving landscape creates uncertainty about the future of digital assets.
Currently, cryptocurrency is legal in 119 countries and four British Overseas Territories, covering more than half of the world’s nations. Notably, 64.7% of these countries are emerging and developing economies, primarily in Asia and Africa.
However, only 62 of these 119 countries (52.1%) have comprehensive regulations in place. This represents significant growth from 2018, when only 33 jurisdictions had formal regulations, showing a 53.2% increase, but still falls short in creating a sense of “unified safety”.
In the United States, regulatory views remain fragmented. Various agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have conflicting perspectives on how to classify and regulate cryptocurrencies. Since 2019, the SEC has filed over 116 crypto-related lawsuits, adding to the regulatory uncertainty faced by the industry.
The Growing Integration Of Digital Assets In Daily Life
As we progress further into the digital age, cryptocurrencies and digital assets are increasingly becoming part of our everyday financial transactions. This shift is driven by two key developments: the rise of crypto payment options and the growing adoption of Central Bank Digital Currencies (CBDCs).
According to a MatrixPort report, global cryptocurrency adoption has now reached 7.51% of the population, underscoring the expanding influence of digital currencies worldwide. By 2025, this rate is expected to surpass 8%, signaling a potential shift from niche usage to mainstream acceptance.
The list of major retailers embracing cryptocurrency as a payment method continues to grow. Some notable companies now accepting crypto include:
- Microsoft: Accepts Bitcoin for Xbox store credits.
- AT&T: The first major U.S. mobile carrier to accept crypto payments.
- Whole Foods: Accepts Bitcoin via the Spedn app.
- Overstock: One of the first major retailers to accept Bitcoin.
- Starbucks: Allows customers to load their Starbucks cards with Bitcoin through the Bakkt app.
A 2022 Deloitte survey revealed that nearly 75% of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years. This trend highlights the growing mainstream acceptance of digital assets as a legitimate payment method.
Crypto-backed debit cards are further bridging the gap between digital assets and everyday transactions. These cards enable users to spend their cryptocurrency at any merchant that accepts traditional debit cards.
According to Factual Market Research, the global crypto card market is projected to reach $9.5 billion by 2030, with a compound annual growth rate (CAGR) of approximately 31.6% from 2021 to 2030. This growth reflects the increasing popularity of crypto-backed debit cards as a way for consumers to integrate their digital assets into daily spending.
The Rise of Central Bank Digital Currencies (CBDCs)
Central Bank Digital Currencies (CBDCs) represent digital versions of a country’s fiat currency, issued and regulated by the national monetary authority. In 2024, the global progress of CBDCs has seen a significant uptick, with marked advances in both research and adoption. As of this year:
- 11 countries have fully launched CBDCs, including the Bahamas, Nigeria, Jamaica, and China.
- 44 countries are conducting pilot programs, up from 36, reflecting growing interest in testing the functionality and stability of digital currencies.
- 66 nations are at advanced stages of CBDC development, contributing to a global landscape where 134 countries (accounting for 98% of the world’s economy) are engaged in CBDC projects.
In the United States, the Federal Reserve is exploring the feasibility of a CBDC through Project Hamilton, a collaborative research initiative with MIT. This exploration aligns with broader goals to reduce reliance on cash, enhance financial inclusion, and improve control over national monetary systems amid the rise of digital payments and cryptocurrencies.
The introduction of CBDCs could significantly reshape daily financial transactions in several ways:
- Increased financial inclusion: CBDCs could offer digital payment access to the 1.4 billion adults who remain unbanked, according to World Bank estimates.
- Faster and cheaper transactions: CBDCs could streamline both domestic and cross-border payments, reducing costs and settlement times.
- Enhanced monetary policy: Central banks would gain more direct control over money supply and circulation.
- Improved traceability: CBDCs could help combat financial crimes and reduce tax evasion by providing greater transaction transparency.
However, challenges persist, including concerns about privacy, cybersecurity risks, and the potential disruption of existing banking systems.
As digital assets continue to integrate into everyday life, they hold the potential to transform how we think about and use money. Despite these challenges, trends in both private cryptocurrency adoption and CBDC development point to a future where digital assets play a central role in our financial systems.
Building Trust Through Technology and Education
According to the 2023 Web3 UI/UX Report, nearly 48% of users cite security concerns and asset protection as the primary barriers to crypto adoption. Other challenges include high transaction fees and the steep learning curve needed to fully grasp both the technology and its benefits.
Despite these obstacles, the blockchain sector has made significant strides as it matures, particularly in enhancing security. Hack-related losses in the crypto market dropped from $3.7 billion in 2022 to $1.8 billion in 2023, underscoring the progress in safeguarding digital assets.
The increased adoption of offline hardware wallets and multi-signature wallets, both of which add critical layers of security, reflects this momentum. Advances in smart contract auditing tools and stronger compliance standards are also minimizing risks, creating a safer environment for both users and institutions.
These improvements highlight the industry’s commitment to establishing a more secure foundation for digital transactions and bolstering confidence in blockchain as a reliable financial technology.
In another positive development, in May 2023, the European Council approved the first comprehensive legal framework for the cryptocurrency industry. This legislation sets a new standard for regulatory transparency and oversight, further reinforcing trust.
Financial Literacy Initiatives
The rise of crypto education in the U.S. is playing a pivotal role in increasing public understanding and encouraging adoption. Programs such as Coinbase Earn aim to simplify the onboarding process for new users, directly addressing the complexity and security concerns that often deter people from engaging with crypto.
According to recent data, 43% of respondents feel that insufficient knowledge is a key reason they avoid the sector, highlighting the ongoing need for crypto-related learning.
Additionally, Chainalysis' 2024 Global Crypto Adoption Index noted a significant increase in crypto interest following the launch of spot Bitcoin ETFs in the U.S. earlier in the year. This development enabled investors to trade ETF shares tied to Bitcoin directly on stock exchanges, making it easier to enter the market without needing extensive technical expertise - thus driving a surge in adoption.
These advancements in security and education are gradually fostering greater trust in the cryptocurrency ecosystem. As the sector continues to evolve, these efforts may pave the way for broader adoption and deeper integration of digital assets into daily financial life.
The Future of Digital Asset Adoption
As digital assets continue to evolve and capture mainstream attention, their potential to transform the financial landscape is becoming increasingly evident. From late 2023 through early 2024, global crypto transaction volumes surged, surpassing the peaks of the 2021 bull market (as illustrated below).
Interestingly, much of this growth in adoption was driven by lower-middle income countries, highlighting the global reach of digital assets.
Below, we explore projections for cryptocurrency usage and its potential impact on traditional banking and finance.
Projections for Crypto Usage in the Next 5-10 Years
Several studies and reports offer insights into the expected growth of cryptocurrency over the next decade:
Global Adoption
The global cryptocurrency market revenue is projected to reach approximately $56.7 billion in 2024, with the United States leading the charge, expected to generate around $9.8 billion in revenue. Statista predicts the number of global crypto users will hit 861 million by 2025, marking a significant shift toward mainstream use.
Institutional Adoption
The 2023 Institutional Investor Digital Assets Study found that 65% of the 1,042 institutional investors surveyed plan to buy or invest in digital assets in the future.
As of 2024, digital currency usage among U.S. organisations is expanding, particularly in sectors such as finance, retail, and technology. Hundreds of financial services and fintech firms are now involved in digital assets, whether in payment processing, investments, or blockchain-based applications. This includes major companies utilising cryptocurrencies as stored value and exploring stablecoin use cases to enhance transaction efficiency.
Notably, major U.S. companies are increasingly engaging with blockchain and digital assets, as regulatory clarity improves and security concerns are addressed.
Retail Adoption
At present, about 85% of major retailers generating over $1 billion in annual online sales accept cryptocurrency payments. In contrast, 23% of mid-sized retailers, with online sales between $250 million and $1 billion, currently accept crypto payments. This growing trend points to an expanding role for digital assets in retail, especially among large-scale businesses.
Potential Impact on Traditional Banking and Finance
The rise of digital asset utilisation is poised to reshape traditional banking systems in multiple areas. For starters, the growth of blockchain technology and digitised financial services is driving the decentralised finance (DeFi) market, which is projected to reach $450 billion by 2030, with a compound annual growth rate (CAGR) of 46%.
In Q3 2024 alone, trading on decentralised exchanges surpassed $100 billion, marking the third consecutive month of growth in trading volume. This trend underscores the increasing interest and activity in the decentralised finance space.
As Central Bank Digital Currencies (CBDCs) are likely to be adopted by 80% of central banks by 2030, the role of commercial banks in money distribution could diminish significantly. Meanwhile, blockchain technology and stablecoins are expected to revolutionise cross-border B2B payments, with 20% of these transactions powered by blockchain by 2025. Stablecoin payment volumes are projected to hit $620 billion by 2026.
Furthermore, the investment landscape is set to evolve as asset tokenisation scales, potentially reaching a value of $16 trillion, making crypto a standard component in investment portfolios.
With regulatory clarity expected to improve - more than half of financial institutions anticipate clearer rules within the next three years - crypto integration is likely to become more widespread. These developments emphasise the transformative potential of digital assets across payments, investments, and financial structures globally.
Bridging the trust gap in crypto adoption
The cryptocurrency landscape is experiencing a surge in institutional interest, which could be a pivotal moment for integrating digital assets into traditional finance. Financial giants like BlackRock are at the forefront of this movement, signaling a shift in mainstream perception and adoption of cryptocurrencies.
Historically, the introduction of new investment vehicles around Bitcoin has spurred market growth. As Markus Thielen, founder of 10x Research, highlights, the launch of spot ETFs could bring about a new wave of institutional involvement, potentially driving the next phase of market expansion.
This growing institutional momentum, combined with evolving regulatory frameworks, is reshaping the crypto ecosystem. However, a key question remains: Will these developments be enough to close the trust gap and push cryptocurrencies into mainstream adoption?
As we stand at this crossroads, the future of digital assets hangs in the balance. The coming years will be critical in determining whether cryptocurrencies can overcome persistent skepticism and fully integrate into the global financial system, or if they will remain a niche, yet impactful, financial instrument.

Millennials and Gen Z are revolutionizing the financial landscape, leveraging cryptocurrencies to challenge traditional systems and redefine money itself. Curious about how this shift affects your financial future? Let's uncover the powerful changes they’re driving!
The financial world is undergoing a significant transformation, largely driven by Millennials and Gen Z. These digital-native generations are embracing cryptocurrencies at an unprecedented rate, challenging traditional financial systems and catalysing a shift toward new forms of digital finance, redefining how we perceive and interact with money.
This movement is not just a fleeting trend but a fundamental change that is redefining how we perceive and interact with money.
Digital Natives Leading the Way
Growing up in the digital age, Millennials (born 1981-1996) and Gen Z (born 1997-2012) are inherently comfortable with technology. This familiarity extends to their financial behaviours, with a noticeable inclination toward adopting innovative solutions like cryptocurrencies and blockchain technology.
According to the Grayscale Investments and Harris Poll Report which studied Americans, 44% agree that “crypto and blockchain technology are the future of finance.” Looking more closely at the demographics, Millenials and Gen Z’s expressed the highest levels of enthusiasm, underscoring the pivotal role younger generations play in driving cryptocurrency adoption.
Desire for Financial Empowerment and Inclusion
Economic challenges such as the 2008 financial crisis and the impacts of the COVID-19 pandemic have shaped these generations' perspectives on traditional finance. There's a growing scepticism toward conventional financial institutions and a desire for greater control over personal finances.
The Grayscale-Harris Poll found that 23% of those surveyed believe that cryptocurrencies are a long-term investment, up from 19% the previous year. The report also found that 41% of participants are currently paying more attention to Bitcoin and other crypto assets because of geopolitical tensions, inflation, and a weakening US dollar (up from 34%).
This sentiment fuels engagement with cryptocurrencies as viable investment assets and tools for financial empowerment.
Influence on Market Dynamics
The collective financial influence of Millennials and Gen Z is significant. Their active participation in cryptocurrency markets contributes to increased liquidity and shapes market trends. Social media platforms like Reddit, Twitter, and TikTok have become pivotal in disseminating information and investment strategies among these generations.
The rise of cryptocurrencies like Dogecoin and Shiba Inu demonstrates how younger investors leverage online communities to impact financial markets2. This phenomenon shows their ability to mobilise and drive market movements, challenging traditional investment paradigms.
Embracing Innovation and Technological Advancement
Cryptocurrencies represent more than just investment opportunities; they embody technological innovation that resonates with Millennials and Gen Z. Blockchain technology and digital assets are areas where these generations are not only users but also contributors.
A 2021 survey by Pew Research Center indicated that 31% of Americans aged 18-29 have invested in, traded, or used cryptocurrency, compared to just 8% of those aged 50-64. This significant disparity highlights the generational embrace of digital assets and the technologies underpinning them.
Impact on Traditional Financial Institutions
The shift toward cryptocurrencies is prompting traditional financial institutions to adapt. Banks, investment firms, and payment platforms are increasingly integrating crypto services to meet the evolving demands of younger clients.
Companies like PayPal and Square have expanded their cryptocurrency offerings, allowing users to buy, hold, and sell cryptocurrencies directly from their platforms. These developments signify the financial industry's recognition of the growing importance of cryptocurrencies.
Challenges and Considerations
While enthusiasm is high, challenges such as regulatory uncertainties, security concerns, and market volatility remain. However, Millennials and Gen Z appear willing to navigate these risks, drawn by the potential rewards and alignment with their values of innovation and financial autonomy.
In summary
Millennials and Gen Z are redefining the financial landscape, with their embrace of cryptocurrencies serving as a catalyst for broader change. This isn't just about alternative investments; it's a shift in how younger generations view financial systems and their place within them. Their drive for autonomy, transparency, and technological integration is pushing traditional institutions to innovate rapidly.
This generational influence extends beyond personal finance, potentially reshaping global economic structures. For industry players, from established banks to fintech startups, adapting to these changing preferences isn't just advantageous—it's essential for long-term viability.
As cryptocurrencies and blockchain technology mature, we're likely to see further transformations in how society interacts with money. Those who can navigate this evolving landscape, balancing innovation with stability, will be well-positioned for the future of finance. It's a complex shift, but one that offers exciting possibilities for a more inclusive and technologically advanced financial ecosystem. The financial world is changing, and it's the young guns who are calling the shots.

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.
What is the "Travel Rule"?
You might have heard of the "Travel Rule" before, but do you know what it actually mean? Well, let me break it down for you. The Travel Rule, also known as FATF Recommendation 16, is a set of measures aimed at combating money laundering and terrorism financing through financial transactions.
So, why is it called the Travel Rule? It's because the personal data of the transacting parties "travels" with the transfers, making it easier for authorities to monitor and regulate these transactions. See, now it all makes sense!
The Travel Rule applies to financial institutions engaged in virtual asset transfers and crypto companies, collectively referred to as virtual asset service providers (VASPs). These VASPs have to obtain and share "required and accurate originator information and required beneficiary information" with counterparty VASPs or financial institutions during or before the transaction.
To make things more practical, the FATF recommends that countries adopt a de minimis threshold of 1,000 USD/EUR for virtual asset transfers. This means that transactions below this threshold would have fewer requirements compared to those exceeding it.
For transfers of Virtual Assets falling below the de minimis threshold, Virtual Asset Service Providers (VASPs) are required to gather:
- The identities of the sender (originator) and receiver (beneficiary).
- Either the wallet address associated with each transaction involving Virtual Assets (VAs) or a unique reference number assigned to the transaction.
- Verification of this gathered data is not obligatory, unless any suspicious circumstances concerning money laundering or terrorism financing arise. In such instances, it becomes essential to verify customer information.
Conversely, for transfers surpassing the de minimis threshold, VASPs are obligated to collect more extensive particulars, encompassing:
- Full name of the sender (originator).
- The account number employed by the sender (originator) for processing the transaction, such as a wallet address.
- The physical (geographical) address of the sender (originator), national identity number, a customer identification number that uniquely distinguishes the sender to the ordering institution, or details like date and place of birth.
- Name of the receiver (beneficiary).
- Account number of the receiver (beneficiary) utilized for transaction processing, similar to a wallet address.
By following these guidelines, virtual asset service providers can contribute to a safer and more transparent virtual asset ecosystem while complying with international regulations on anti-money laundering and countering the financing of terrorism. It's all about ensuring the integrity of financial transactions and safeguarding against illicit activities.
Implementation of the Travel Rule in the United Kingdom
A notable shift is anticipated in the United Kingdom's oversight of the virtual asset sector, commencing September 1, 2023.
This seminal development comes in the form of the Travel Rule, which falls under Part 7A of the Money Laundering Regulations 2017. Designed to combat money laundering and terrorist financing within the virtual asset industry, this new regulation expands the information-sharing requirements for wire transfers to encompass virtual asset transfers.
The HM Treasury of the UK has meticulously customized the provisions of the revised Wire Transfer Regulations to cater to the unique demands of the virtual asset sector. This underscores the government's unwavering commitment to fostering a secure and transparent financial ecosystem. Concurrently, it signals their resolve to enable the virtual asset industry to flourish.
The Travel Rule itself originates from the updated version of the Financial Action Task Force's recommendation on information-sharing requirements for wire transfers. By extending these recommendations to cover virtual asset transfers, the UK aspires to significantly mitigate the risk of illicit activities within the sector.
Undoubtedly, the Travel Rule heralds a landmark stride forward in regulating the virtual asset industry in the UK. By extending the ambit of information-sharing requirements and fortifying oversight over virtual asset firms
Implementation of the Travel Rule in the European Union
Prepare yourself, as a new regulation called the Travel Rule is set to be introduced in the world of virtual assets within the European Union. Effective from December 30, 2024, this rule will take effect precisely 18 months after the initial enforcement of the Transfer of Funds Regulation.
Let's delve into the details of the Travel Rule. When it comes to information requirements, there will be no distinction made between cross-border transfers and transfers within the EU. The revised Transfer of Funds regulation recognizes all virtual asset transfers as cross-border, acknowledging the borderless nature and global reach of such transactions and services.
Now, let's discuss compliance obligations. To ensure adherence to these regulations, European Crypto Asset Service Providers (CASPs) must comply with certain measures. For transactions exceeding 1,000 EUR with self-hosted wallets, CASPs are obligated to collect crucial originator and beneficiary information. Additionally, CASPs are required to fulfill additional wallet verification obligations.
The implementation of these measures within the European Union aims to enhance transparency and mitigate potential risks associated with virtual asset transfers. For individuals involved in this domain, it is of utmost importance to stay informed and adhere to these new guidelines in order to ensure compliance.
What does the travel rules means to me as user?
As a user in the virtual asset industry, the implementation of the Travel Rule brings some significant changes that are designed to enhance the security and transparency of financial transactions. This means that when you engage in virtual asset transfers, certain personal information will now be shared between the involved parties. While this might sound intrusive at first, it plays a crucial role in combating fraud, money laundering, and terrorist financing.
The Travel Rule aims to create a safer environment for individuals like you by reducing the risks associated with illicit activities. This means that you can have greater confidence in the legitimacy of the virtual asset transactions you engage in. The regulation aims to weed out illicit activities and promote a level playing field for legitimate users. This fosters trust and confidence among users, attracting more participants and further driving the growth and development of the industry.
However, it's important to note that complying with this rule may require you to provide additional information to virtual asset service providers. Your privacy and the protection of your personal data remain paramount, and service providers are bound by strict regulations to ensure the security of your information.
In summary, the Travel Rule is a positive development for digital asset users like yourself, as it contributes to a more secure and trustworthy virtual asset industry.
Unlocking Compliance and Seamless Experiences: Tap's Proactive Approach to Upcoming Regulations
Tap is fully committed to upholding regulatory compliance, while also prioritizing a seamless and enjoyable customer experience. In order to achieve this delicate balance, Tap has proactively sought out partnerships with trusted solution providers and is actively engaged in industry working groups. By collaborating with experts in the field, Tap ensures it remains on the cutting edge of best practices and innovative solutions.
These efforts not only demonstrate Tap's dedication to compliance, but also contribute to creating a secure and transparent environment for its users. By staying ahead of the curve, Tap can foster trust and confidence in the cryptocurrency ecosystem, reassuring customers that their financial transactions are safe and protected.
But Tap's commitment to compliance doesn't mean sacrificing user experience. On the contrary, Tap understands the importance of providing a seamless journey for its customers. This means that while regulatory requirements may be changing, Tap is working diligently to ensure that users can continue to enjoy a smooth and hassle-free experience.
By combining a proactive approach to compliance with a determination to maintain user satisfaction, Tap is setting itself apart as a trusted leader in the financial technology industry. So rest assured, as Tap evolves in response to new regulations, your experience as a customer will remain top-notch and worry-free.
Unveiling the future of money: Explore the game-changing Central Bank Digital Currencies and their potential impact on finance.
Since the debut of Bitcoin in 2009, central banks have been living in fear of the disruptive technology that is cryptocurrency. Distributed ledger technology has revolutionized the digital world and has continued to challenge the corruption of central bank morals.
Financial institutions can’t beat or control cryptocurrency, so they are joining them in creating digital currencies. Governments have now been embracing digital currencies in the form of CBDCs, otherwise known as central bank digital currencies.
Central bank digital currencies are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country's fiat currency, acting as a digital currency version of the national currency. CBDCs are created and regulated by a country's central bank and monetary authorities.
A central bank digital currency is generally created for a sense of financial inclusion and to improve the application of monetary and fiscal policy. Central banks adopting currency in digital form presents great benefits for the federal reserve system as well as citizens, but there are some cons lurking behind the central bank digital currency facade.
Types of central bank digital currencies
While the concept of a central bank digital currency is quite easy to understand, there are layers to central bank money in its digital form. Before we take a deep dive into the possibilities presented by the central banks and their digital money, we will break down the different types of central bank digital currencies.
Wholesale CBDCs
Wholesale central bank digital currencies are targeted at financial institutions, whereby reserve balances are held within a central bank. This integration assists the financial system and institutions in improving payment systems and security payment efficiency.
This is much simpler than rolling out a central bank digital currency to the whole country but provides support for large businesses when they want to transfer money. These digital payments would also act as a digital ledger and aid in the avoidance of money laundering.
Retail CBDCs
A retail central bank digital currency refers to government-backed digital assets used between businesses and customers. This type of central bank digital currency is aimed at traditional currency, acting as a digital version of physical currency. These digital assets would allow retail payment systems, direct P2P CBDC transactions, as well as international settlements among businesses. It would be similar to having a bank account, where you could digitally transfer money through commercial banks, except the currency would be in the form of a digital yuan or euro, rather than the federal reserve of currency held by central banks.
Pros and cons of a central bank digital currency (CBDC)
Central banks are looking for ways to keep their money in the country, as opposed to it being spent on buying cryptocurrencies, thus losing it to a global market. As digital currencies become more popular, each central bank must decide whether they want to fight it or profit from the potential. Regardless of adoption, central banks creating their own digital currencies comes with benefits and disadvantages to users that you need to know.
Pros of central bank digital currency (CBDC)
- Cross border payments
- Track money laundering activity
- Secure international monetary fund
- Reduces risk of commercial bank collapse
- Cheaper
- More secure
- Promotes financial inclusion
Cons of central bank digital currency (CDBC)
- Central banks have complete control
- No anonymity of digital currency transfers
- Cybersecurity issues
- Price reliant on fiat currency equivalent
- Physical money may be eliminated
- Ban of distributed ledger technology and cryptocurrency
Central bank digital currency conclusion
Central bank money in an electronic form has been a big debate in the blockchain technology space, with so many countries considering the possibility. The European Central Bank, as well as other central banks, have been considering the possibility of central bank digital currencies as a means of improving the financial system. The Chinese government is in the midst of testing out their e-CNY, which some are calling the digital yuan. They have seen great success so far, but only after completely banning Bitcoin trading.
There is a lot of good that can come from CBDCs, but the benefits are mostly for the federal reserve system and central banks. Bank-account holders and citizens may have their privacy compromised and their investment options limited if the world adopts CBDCs.
It's important to remember that central bank digital currencies are not cryptocurrencies. They do not compete with cryptocurrencies and the benefits of blockchain technology. Their limited use cases can only be applied when reinforced by a financial system authority. Only time will tell if CBDCs will succeed, but right now you can appreciate the advantages brought to you by crypto.
Tap makes entering the Bitcoin world simple. Buy, sell, hold, and trade Bitcoin easily on our secure platform.
Welcome to this week's Crypto Update, your go-to destination for the latest news in the exciting world of cryptocurrencies. Let's dive right into the highlights of the past week in the dynamic crypto market.
Etherscan's AI Tool for Smart Contracts:
Etherscan has launched Code Reader, an advanced tool that utilizes AI to retrieve and interpret source code from specific Ethereum contract addresses. Code Reader leverages OpenAI's powerful language model to generate comprehensive insights into contract source code files. The tool allows users to gain a deeper understanding of contract code, access comprehensive lists of smart contract functions, and explore contract interactions with decentralized applications. To access and utilize Code Reader, users need a valid OpenAI API Key and sufficient OpenAI usage limits. However, researchers caution about the challenges posed by current AI models, including computing power limitations, data synchronization, network optimization, and privacy concerns.
SEC's increased scrutiny on cryptocurrencies sparks debate:
The U.S. Securities and Exchange Commission's (SEC) increased scrutiny has led to a prominent debate concerning the future of XRP and Ethereum. Max Keiser, a well-known Bitcoin advocate, predicts the downfall of XRP and Ethereum due to regulatory overreach. In contrast, John Deaton, representing XRP holders, opposes this view, arguing for a more balanced regulatory approach. The cryptocurrency community is now anxiously awaiting regulatory clarity, as the SEC's actions remain unpredictable.
It's important to note that the regulatory environment is constantly evolving and can have significant impacts on the cryptocurrency market, including Ethereum. Therefore, it is advisable to stay informed about the latest developments.
A Call for Clarity: Federal reserve governor advocates for clearer crypto regulations:
Michelle Bowman, a Federal Reserve Governor, has urged global regulators to establish clearer regulations for emerging banking activities, particularly banking as a service and digital assets. She emphasized the need for a well-defined regulatory framework to address the supervisory void and uncertainties that financial institutions currently face. Bowman's call aligns with the growing demand for enhanced regulation of digital assets. A robust and comprehensive regulatory framework is crucial for ensuring the stability and integrity of the banking sector, mitigating risks, protecting consumers, and fostering innovation.
Turkish lira hit a record low against the US dollar
The Turkish lira hit a historic low, trading at 25.74 per US dollar, following Turkey's central bank decision to raise interest rates by 650 basis points to 15%. While the hike was expected, it fell short of the anticipated 21%, and analysts believe a larger increase was needed to show the government's resolve to fight inflation. The lira's devaluation has been part of a larger trend, prompting citizens to invest in alternative assets like digital currencies and gold. The central bank, now under new leadership, has adopted a more gradual approach to rate adjustments, seeking to stabilize the economy. However, the uncertainty surrounding Turkey's economic future persists.
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When you find a platform that makes managing crypto easy and actually enjoyable, it’s only natural to spread the word. With Tap’s Referral Program, you can turn that good deed into rewards and help your friends unlock premium features while you earn bonuses every time they join and trade. Win-win.
Quick highlights:
- Both you and your friend earn bonuses when they upgrade from Essential to a higher tier
- Your bonus is immediately available, while your friend's is locked for 12 months (helping them build long-term wealth)
- Friends have 60 days after completing verification to upgrade and qualify
- Bonus amounts vary based on which premium tier your friend chooses
Why share Tap with your friends?
Think about the last time a friend's recommendation genuinely improved your life. Maybe it was an investment tip that paid off, or a service that simplified something complicated. Financial platforms work the same way - when you find something that truly helps, it's worth sharing.
Cus let’s be honest, the digital asset world can feel overwhelming for newbies. Between choosing the right platform, understanding different service tiers, and navigating security requirements, many people never move beyond basic accounts. That's where your recommendation becomes valuable.
Your friends will likely trust your judgment because you've already explored the platform, experienced the premium features, and can speak authentically about the difference between Tap's Essential tier and the upgraded options.
Understanding Tap's user privilege tiers
One thing that sets Tap apart is its tiered approach to services. Rather than offering the same basic experience to everyone, they provide increasingly valuable features that mirror the financial situation of the user:
Essential - The starting point for all new users
Plus - Enhanced features for growing portfolios
Prime - Advanced tools for serious investors
Premier - Professional-grade capabilities
Platinum - Premium institutional-level access
Prestige - The ultimate tier for sophisticated users
When your friends start with an Essential account, they get a taste of what Tap offers. But the real value unlocks when they upgrade to higher tiers, accessing features that can significantly impact their digital asset strategy.

How Tap's referral program works
Here's the straightforward process:
Step 1: Share your unique link
Every verified Tap user gets a personal referral link in their app. This tracks anyone who signs up through your recommendation. Open the app, click on your profile picture and select Refer a Friend.
Step 2: Your friend creates their account
Using your referral link, they’ll need to open an account and complete their KYC (Know Your Customer) verification (standard security procedures for financial platforms).
Step 3: The 60-day window
Once their verification is approved, your friend has 60 days to upgrade from Essential to any higher tier (Plus, Prime, Premier, Platinum, or Prestige).
- The 60-day upgrade window encourages new users to actively explore the platform and make an informed decision about premium features and which one best suits their needs.
Step 4: Bonuses are credited
When they upgrade, you both receive bonuses. Yours is immediately available, while theirs is locked for 12 months to encourage long-term wealth building. Reward amounts vary based on the tier they upgrade to.
Step 5: Claim your bonus
You'll need to claim your bonus through the mobile app as it won't be automatically added to your balance. Go back to where you found the referral link and select Your Rewards.
Important program details
Eligibility requirements:
- You must have a verified account in good standing
- Both parties must complete the KYC requirements
- Maintain compliance with Tap's terms and conditions
Geographic availability:
- Currently available for Tap customers globally
- US customers will have access announced at a future date
Ready to start referring?
Tap’s referral program lets you earn rewards just by introducing friends to the premium features you already love. When you share your upgrade experience, you’re not just helping friends discover smarter tools, you’re essentially giving them a shortcut to better digital asset management.
Remember, your referral means more because it’s real, based on your own journey with Tap’s premium tiers. When you refer people who’ll genuinely benefit, everyone wins: you earn bonuses, your friends level up their portfolio game, and Tap grows with the kind of users who truly get it.
So don’t spam - share smart. Thoughtful referrals lead to better rewards all around.

For millennia, humans have defined value through the tangible: gold you could hold, land you could stand on, and later, paper notes backed by government promises. But in just over a decade, cryptocurrency has fundamentally challenged these ancient conventions, introducing a radical new proposition: what if value could exist purely as information, secured not by central authorities but by mathematics and collective consensus?
Consider this: cryptocurrency isn't merely a financial innovation; it represents a philosophical, cultural, and psychological revolution in how we conceptualise value itself. While traditional economists and crypto bros might view crypto assets as speculative instruments, they miss the broader transformation occurring beneath the price charts - a complete reconstruction of our relationship with money, trust, and economic participation.
As we'll explore, this shift extends far beyond trading and investing. It's reshaping how entire generations think about wealth preservation, questioning long-held assumptions about institutional authority, and expanding financial access to previously excluded populations. From Bitcoin's deflationary model to the complex ecosystems of decentralised finance, crypto is rewriting the very language of value in the digital age. Let’s explore it.
From tangible to digital: the evolution of wealth perception
"Where exactly is your Bitcoin?" This seemingly simple question reveals the profound shift occurring in our collective understanding of wealth. For centuries, value storage meant physical possession (again, gold bars in vaults, cash in wallets, or property deeds in filing cabinets). The materiality of these assets provided psychological comfort; you could literally touch your wealth.
Cryptocurrency challenges this fundamental association between physicality and value. When someone owns Bitcoin, they don't possess a digital coin in the conventional sense. Instead, they control access to a position on an immutable ledger - a concept so abstract that it requires significant cognitive adjustment for many traditional investors.
From a behavioural aspect, the difficulty many people have with accepting cryptocurrency stems from our evolutionary programming: our brains developed to value tangible resources (food, shelter, tools). Abstract representations of value require more cognitive processing, which is why many people struggle with the concept of crypto despite understanding it intellectually.
This transition mirrors other historical shifts in value perception. When paper money first replaced gold coins, many resisted the change, insisting that value couldn't exist in mere paper promises. Today's movement from government-issued currency to algorithmic scarcity follows a similar pattern of initial resistance followed by gradual normalisation.
What makes the current transition unique is its complete divorce from the physical realm. Bitcoin, Ethereum, and thousands of other digital assets exist exclusively as information, secured through cryptography, distributed across thousands of computers worldwide, and accessible only through digital keys. This represents not an incremental change but a quantum leap in how we conceptualise ownership and store value.
Decentralisation: redefining trust and authority
Perhaps crypto's most revolutionary aspect isn't its digital nature but its decentralised structure. For centuries, we've outsourced trust to centralised institutions, for example, banks to protect our deposits, governments to manage currency supplies, and credit agencies to verify our financial identities.
Cryptocurrency proposes an alternative: what if trust could be encoded into protocol rules, distributed across networks, and verified by mathematics rather than human authorities?
When Satoshi Nakamoto created Bitcoin, it wasn't just a new asset class - it was a fundamental challenge to the monopoly on money creation. By solving the double-spend problem without requiring a central authority, blockchain technology essentially digitised trust itself.
This decentralisation has profound implications across the financial landscape:
- Banking without banks: Cryptocurrency enables people to become their own financial institutions: storing, transferring, and managing wealth without intermediaries who charge fees and impose conditions.
- Censorship resistance: When value exists on distributed networks, it becomes extraordinarily difficult for any single entity to freeze assets or block transactions, creating new forms of financial freedom.
- Global accessibility: Traditional financial systems reflect geographic and political boundaries. Decentralised networks operate independently of these constraints, allowing anyone with internet access to participate in the global economy.
In emerging markets particularly, this shift from institutional to algorithmic trust has accelerated rapidly. When Venezuela experienced hyperinflation exceeding 1,000,000% in 2018, many citizens turned to Bitcoin not as a speculative investment but as a practical necessity, literally a more stable store of value than their national currency. Similar adoption patterns have emerged across countries with unstable monetary policies or restrictive capital controls.
Some may view decentralisation as more than just a technological preference and more of a direct response to institutional failure. For example, when central banks and governments repeatedly mismanage monetary policy, people naturally tend to seek alternatives that can't be arbitrarily inflated or confiscated.
Scarcity, security & the psychology of hodling
Unlike fiat currencies that can be created indefinitely by central banks, Bitcoin introduced the concept of absolute digital scarcity: only 21 million will ever exist. Again, this fixed supply fundamentally changed how people think about money's relationship to inflation and time.
The term "HODL" (originally a typo for "hold") has evolved from crypto-community slang into a philosophy reflecting a significant psychological shift. Hodlers view cryptocurrency not as a short-term trading vehicle but as a long-term store of value, for some: digital assets worth preserving across generations.
Economist Saifedean Ammous, author of The Bitcoin Standard, argues that Bitcoin marks a return to "hard money" principles. He suggests that for most of human history, money was tied to inherently scarce resources like gold, which couldn't be artificially increased. In contrast, the widespread use of elastic fiat currencies in the 20th century is, in his view, a historical outlier. Bitcoin, with its fixed supply, reintroduces the idea of money that resists debasement.
This scarcity-based mindset has also impacted saving behaviours, particularly among younger generations. While traditional financial advisors typically recommend diversified portfolios with 3-6 months of emergency savings, many crypto adopters maintain much larger reserves, viewing fiat currency as an inherently depreciating asset and cryptocurrency as a hedge against monetary expansion.
The psychological security derived from mathematically guaranteed scarcity creates powerful emotional attachments. For many hodlers, their relationship with cryptocurrency transcends normal investment dynamics - it becomes a vote of confidence in a different economic model. This faith often persists through extreme market volatility, confounding traditional economic rationality models.
From a psychological perspective, consider this: the willingness to endure 70-80% drawdowns without selling suggests something deeper than profit motivation. For committed crypto holders, their assets represent not just potential financial gain but ideological alignment and identity. They're invested emotionally as well as financially.
Financial sovereignty and the global unbanked
For approximately 1.7 billion adults worldwide without access to banking services, cryptocurrency offers something revolutionary: financial inclusion without institutional permission. This aspect of the crypto revolution rarely makes headlines but represents one of its most profound impacts.
In regions where banking infrastructure is limited, cryptocurrency enables financial activities previously impossible:
- Cross-border remittances: Migrant workers can send money home without exorbitant fees or lengthy delays
- Savings protection: Citisens in economically unstable regions can store value beyond the reach of local currency depreciation
- Microfinance access: Blockchain-based lending platforms enable credit access without traditional banking relationships
The concept of "being your own bank" carries different significance for someone in rural Kenya than for someone in Manhattan. For the latter, it might represent philosophical alignment; for the former, it could mean the first real opportunity to participate in the global financial system.
Even in developed economies, cryptocurrency offers financial sovereignty to those facing exclusion. Sex workers, political dissidents, and others vulnerable to financial censorship have found in crypto a way to operate beyond institutional control, though, of course, this same quality raises legitimate concerns about illicit usage.
Risk, reward, and a new investment ethos
Cryptocurrency has also introduced an entirely different relationship with financial risk. Traditional investment wisdom emphasises diversification, steady appreciation, and risk mitigation. The crypto ecosystem, by contrast, has “normalised” extreme volatility, concentrated positions, and experimental financial protocols.
DeFi (decentralised finance) platforms exemplify this new investment psychology. These permissionless protocols enable users to lend, borrow, and trade directly through smart contracts, often offering yields far exceeding traditional finance but with correspondingly higher risks. The willingness to lock millions of dollars, or just hundreds, into experimental code represents a profound shift in risk tolerance.
What traditional investors might see as reckless, many crypto participants view as rational, given their time horizon and beliefs about technological adoption. If someone genuinely believes blockchain technology will transform finance, accepting short-term volatility for potential long-term exponential growth aligns with that conviction.
The future of value: identity, data, and the Metaverse
As crypto continues evolving, its impact on value perception extends into emerging domains like digital identity, data ownership, and virtual economies. Blockchain technology enables new forms of value representation far beyond simple currency.
The next frontier isn't just about money - it's about tokenising aspects of human activity that were previously outside economic systems. From attention to data to reputation, blockchain enables us to capture, measure, and exchange forms of value that were previously intangible. Enter Web3.
Several emerging trends suggest how our concept of value might further evolve:
- Digital identity as asset: Self-sovereign identity systems enable individuals to control and potentially monetise their verified credentials and reputation
- Data ownership: Blockchain-based systems allow users to control, track, and be compensated for their data rather than surrendering it to platforms
- Virtual property: As metaverse platforms develop, ownership of digital land, items, and experiences increasingly resembles traditional property rights
The integration of AI with blockchain technology particularly suggests radical possibilities. Autonomous economic agents (software that can hold assets, make transactions, and provide services) may create entirely new economic relationships not predicated on human participation at all.
Looking toward 2035-2045, we might see value systems where:
- Human attention becomes explicitly priced and compensated through micropayment systems
- Algorithmic reputation scores function as forms of capital across platforms
- Digital and physical assets become increasingly interchangeable through tokenisation
The distinction between 'real' and 'virtual' value is already dissolving. For digital natives, ownership of a rare game item or social token can feel as significant as physical possessions. As virtual experiences consume more of our time and attention, this trend will likely only accelerate.
Conclusion: the value revolution has already begun
Cryptocurrency's true revolution isn't financial - it's conceptual, transforming how we understand value itself. Beyond creating wealth or challenging institutions, crypto expands money's definition through mathematical scarcity, programmable assets, and community governance.
This philosophical shift fundamentally redefines our relationship with ownership, trust, and economic participation.
As digital and physical value boundaries blur, both opportunities and challenges emerge. Whether you participate or not, understanding these paradigm shifts will be crucial for navigating our economic future where value is increasingly defined by consensus rather than decree.

You've heard the stories. Someone bought Bitcoin for a few dollars and is now set for life. Maybe it's a friend, a news story, or that one person who won't stop talking about crypto. And now you're wondering: "Is it too late to buy Bitcoin?"
You're not alone. People have asked this exact question at every price point – when Bitcoin hit $100, $1,000, $10,000, even $100,000. Some jumped in, others waited, convinced they'd missed their chance.
Here's the reality: timing markets is tough. What feels "too late" today might look like perfect timing in a few years. Or maybe it really is too late. Nobody knows for sure.
This guide breaks down what you need to know. We'll look at Bitcoin's wild price history, where things stand today, and the arguments on both sides. You'll get the facts you need to make your own decision – because that's exactly what this is: your decision to make.
Let’s look at Bitcoin's price history and market cycles
Understanding where Bitcoin has been helps put today's prices in perspective. Let's take a trip down memory lane.
The Early Days (2009-2013)
Bitcoin started as an experiment. In 2009, it literally had no price – people were just testing this weird new digital money. The first recorded Bitcoin transaction was someone buying two pizzas for 10,000 Bitcoin. Today, those pizzas would be worth hundreds of millions.
By 2013, Bitcoin had climbed to around $100. People who bought in were called crazy by friends and family. "Digital monopoly money," they said. Yet those "crazy" people watched their investment grow 100x over the next few years.

Source: CoinGecko
The First Big Rally (2014-2017)
This is when Bitcoin started getting serious attention. The price swung wildly, dropping to $200 in 2015, then shooting up like a rocket. By late 2017, Bitcoin hit nearly $20,000.
Suddenly, everyone was talking about it. Your dentist was giving you crypto tips. The guy at the grocery store was checking Bitcoin prices on his phone. Classic bubble behaviour.
The Crypto Winter (2018-2020)
Then reality hit. Bitcoin crashed back down to around $3,200 in 2018. All those people who bought near the top? They were underwater big time. Many sold at a loss and swore off crypto forever.
This period taught everyone an important lesson: Bitcoin goes through cycles. Big ups, big downs, and long stretches where not much happens.
The Institutional Era (2021-Present)
Something changed around 2020. Big companies started buying Bitcoin. Tesla put it on their balance sheet. PayPal let customers buy it. Suddenly, this wasn't just for tech nerds anymore.
Bitcoin hit new all-time highs, then crashed again, then recovered. The pattern repeated, but with one key difference: institutional players were now in the game.
Where Bitcoin stands in 2025
Fast forward to today. Bitcoin has been through multiple cycles, survived countless "death" predictions, and keeps bouncing back. But where exactly are we now?
Current market sentiment
The Bitcoin market today feels different from previous cycles. There's less wild speculation and more measured interest. Sure, you still have people expecting Bitcoin to hit a million dollars, but you also have pension funds quietly adding it to their portfolios.
Institutional adoption updates
Major financial institutions now offer Bitcoin services. You can buy Bitcoin ETFs through your regular brokerage account. Companies hold Bitcoin as treasury reserves. This wasn't even imaginable in Bitcoin's early days.
Regulatory landscape
Governments are still figuring out how to handle Bitcoin, but the conversation has shifted. Instead of trying to ban it outright, most are working on regulations. While sure, this creates uncertainty in the short term, but potentially provides more stability long term.
Why people think they've "missed the boat"
Let's be honest about the psychology here. There are real reasons why Bitcoin feels intimidating to newcomers.
Every Bitcoin article mentions someone who became a millionaire from a small investment. These stories are true, but they're also rare. It's like hearing about lottery winners – inspiring but not exactly a strategy.
The media loves extreme stories. "Bitcoin crashes 50%!" gets more clicks than "Bitcoin remains volatile as expected." This creates a distorted view of what normal Bitcoin behaviour looks like.
When Bitcoin costs tens of thousands of dollars, buying "one Bitcoin" feels impossible for most people. But here's what many don't realise: you can buy fractions of Bitcoin. You don't need to buy a whole one.
The case for why it's NOT too late
Let's look at the strongest arguments for Bitcoin still having room to grow.
- Limited supply meets growing demand
There will only ever be 21 million BTC. Ever. This is coded into the system and can't be changed. Meanwhile, more people and institutions want exposure to Bitcoin every year. Basic economics suggests this could push prices higher.
- Digital gold is still emerging
Many investors view Bitcoin as "digital gold" - a store of value for the internet age. Gold has a multi-trillion-dollar market cap. Bitcoin's market cap is much smaller. If Bitcoin really becomes digital gold, there could be significant room for growth.
- Global adoption is just beginning
Most of the world still doesn't own Bitcoin. If adoption continues spreading globally, especially in countries with unstable currencies, demand could increase substantially.
- Technology infrastructure is improving
Bitcoin is becoming easier to buy, store, and use. Better infrastructure typically leads to broader adoption, which could support higher prices over time.
The case for why it MIGHT be too late
Now let's examine the other side honestly.
- Volatility remains extreme
Bitcoin still swings wildly in price. A 20% drop in a day isn't unusual. This kind of volatility makes it unsuitable for many people's financial situations.
- Regulatory uncertainty
Governments could still impose harsh restrictions. While outright bans seem less likely, heavy regulations could limit Bitcoin's growth potential.
- Environmental concerns
Bitcoin mining uses significant energy. As climate concerns grow, this could become a bigger issue for institutional adoption.
- Competition from other technologies
Bitcoin was the first cryptocurrency, but it's not the only one. Newer technologies might offer better solutions for digital payments or store-of-value use cases.
Smart approaches to Bitcoin investment
If you're considering Bitcoin, here are strategies others have used.
Dollar-cost averaging
Instead of buying all at once, some people buy a small amount regularly, maybe $50 or $100 per month. This spreads out your purchase price over time, reducing the impact of Bitcoin's volatility.
Think of it like filling up your gas tank. You don't wait for the perfect price, you just buy what you need when you need it.
The "coffee money" strategy
Some people only invest money they'd otherwise spend on small luxuries. Skip the daily coffee shop visit and put that $5 into Bitcoin instead. It's money you wouldn't miss if you lost it.
Set clear time horizons
Bitcoin is volatile short-term but has trended upward over longer periods. People who view it as a long-term hold (5+ years) tend to stress less about daily price movements.
Position sizing that won't ruin your life
A common rule of thumb is never invest more than you can afford to lose completely. For most people, this means Bitcoin should be a small portion of their overall portfolio.
Expert perspectives and market analysis
What are the professionals saying about Bitcoin's future?
Financial advisor views
Traditional financial advisors are split. Some now recommend small Bitcoin allocations (1-5% of a portfolio) as a hedge against inflation and currency debasement. Others remain sceptical due to volatility concerns. DYOR.
Crypto analyst predictions
Crypto analysts range from extremely bullish (predicting six or seven-figure Bitcoin prices) to cautiously optimistic. What most agree on is that Bitcoin will likely remain volatile but could trend higher over very long time periods due to supply-demand metrics.
Historical precedent
Looking at other revolutionary technologies, adoption often happens in waves. The internet, smartphones, and even electricity followed similar patterns: periods of rapid growth followed by corrections, then more growth as the technology matured.
Alternative ways to get Bitcoin exposure
If you’re on the fence and don't have to buy Bitcoin directly, here are other options to consider.
Bitcoin ETFs
Exchange-traded funds let you buy Bitcoin exposure through your regular brokerage account. You don't need to worry about digital wallets or private keys. The downside is that you don't actually own the Bitcoin, you own shares in a fund that owns Bitcoin.
Bitcoin mining stocks
Some companies focus on Bitcoin mining. Their stock prices often correlate with Bitcoin's price but add additional business risks.
Blockchain technology investments
You could invest in companies building blockchain infrastructure rather than Bitcoin itself. This gives you exposure to the broader technology trend.
Common mistakes to avoid
Learn from others' expensive mistakes.
- Investing money you can't afford to lose
This is the big one. Bitcoin can and does lose significant value quickly. Never invest money you need for rent, groceries, or emergencies.
- Trying to time the market perfectly
Waiting for the "perfect" entry point often means never buying at all. Even professional traders struggle to time markets consistently.
- Falling for get-rich-quick schemes
If someone promises guaranteed returns or secret strategies, run the other way. Legitimate Bitcoin investment is boring: buy, hold, and wait.
- Neglecting security
If you buy Bitcoin directly, you're responsible for keeping it safe. Learn about proper storage before you buy, not after.
- Making emotional decisions
Bitcoin's price swings can trigger strong emotions. Having a plan before you invest helps you stick to it when prices get crazy.
How to buy bitcoin safely (if you decide to)
Should you choose to buy Bitcoin, here's how to buy Bitcoin safely through Tap:
- Download the app
- Create an account and complete the verification process
- Open your unique Bitcoin wallet within the app
- Enter the amount you would like to buy
- Confirm the trade, and your BTC will be added to your wallet.

(Psst: here’s a more detailed guide)
The bottom line: making your decision
So, is it too late to buy Bitcoin? Here's what we know for sure:
Bitcoin has gone through multiple cycles where people thought they'd missed out, only to see new opportunities emerge later. The technology has survived longer than most critics expected and continues attracting institutional interest.
At the same time, Bitcoin remains highly volatile and speculative. Past performance doesn't guarantee future results. What worked for early adopters might not work going forward.
Your decision should depend on your personal financial situation, risk tolerance, and investment timeline. If losing your entire Bitcoin investment would seriously impact your life, then it's probably not right for you. If you can afford to lose the money and want exposure to this technology, then the timing question becomes less important.
Remember, there's no rule saying you have to make this decision today. You can take time to learn more, watch how the market develops, and decide later. Sometimes the best investment decision is waiting until you fully understand what you're buying.
Whatever you decide, make sure it's based on your own research and financial situation, and not the fear of missing out or pressure from others. The right choice is the one that lets you sleep well at night.

Badger DAO (BADGER) is a decentralised autonomous organisation focused on building products and infrastructure to bring Bitcoin to decentralised finance (DeFi) ecosystems. In a crypto landscape where Bitcoin and DeFi often exist as separate domains, Badger distinguishes itself by creating bridges that allow Bitcoin holders to participate in Ethereum's DeFi ecosystem without sacrificing their BTC holdings.
Let's explore how this platform is addressing the challenges of Bitcoin integration in DeFi, yield generation, and cross-chain interoperability.
TLDR
- Bitcoin in DeFi: Badger creates infrastructure that allows Bitcoin holders to utilise their BTC within Ethereum's DeFi ecosystem through tokenised Bitcoin assets like WBTC, renBTC, and more.
- Community governance: As a DAO, Badger operates through decentralised governance where BADGER token holders vote on protocol decisions, development, and treasury allocations.
- Multi-product ecosystem: Utilises BadgerDAO (governance), Sett Vaults (yield strategies), and DIGG (elastic supply BTC-pegged token).
What is Badger DAO all about?
Founded in 2020 by Chris Spadafora and a team of DeFi enthusiasts, Badger DAO launched in December 2020 with a fair distribution model that included no pre-sale or venture capital funding. The platform enables Bitcoin holders to use their BTC in DeFi applications while maintaining exposure to Bitcoin's price movements.
It aims to overcome traditional Bitcoin limitations in the DeFi space, such as limited yield opportunities, siloed ecosystems, and technical barriers, and it uses DAO governance to achieve this. The platform's infrastructure allows for yield optimisation on tokenised Bitcoin assets, minimising the complexity for users wanting to earn returns on their BTC holdings within Ethereum's DeFi ecosystem.
In December 2020, Badger conducted its fair launch, distributing BADGER tokens to users who had previously participated in various DeFi protocols. Since then, the platform has continued to evolve, introducing new vaults, strategies, and partnering with other DeFi protocols to maximise Bitcoin holders' opportunities. In 2021, Badger launched DIGG, an elastic supply cryptocurrency that targets a price pegged to Bitcoin.
At the time of writing, it remains one of the notable Bitcoin-focused DeFi platforms in the cryptocurrency ecosystem, bridging the gap between Bitcoin's store of value proposition and Ethereum's DeFi functionality.
How does the Badger platform work?
Badger's core architecture revolves around three main components that work together to provide comprehensive Bitcoin DeFi services:
- BadgerDAO - the governance layer where BADGER token holders vote on protocol decisions and treasury allocations.
- Sett Vaults - yield-generating vaults that automate complex DeFi strategies for tokenised Bitcoin assets.
- DIGG - an elastic supply BTC-pegged token that expands and contracts its supply to maintain a BTC price peg.
The BadgerDAO governance system operates on the Ethereum blockchain, creating a democratic ecosystem where token holders can propose and vote on changes to the protocol. When users deposit their tokenised Bitcoin (like WBTC or renBTC) into Sett Vaults, the assets are deployed across various DeFi protocols to generate yield according to carefully designed strategies.
By distributing the governance process across the community and putting users in control of their yield strategies, Badger promises to deliver security, yield optimisation, and convenience without compromises. Because users can access DeFi opportunities without having to convert their Bitcoin to Ethereum, this makes it an efficient solution for both Bitcoin maximalists and DeFi enthusiasts looking to maximise their returns.
Badger created the BADGER token to be the governance token across its ecosystem, used for voting on protocol changes, directing treasury funds, and incentivising ecosystem participation.
How does Badger DAO protect users’ funds?
Badger employs a robust security architecture where smart contracts undergo thorough audits from multiple security firms. The protocol utilises a timelock for governance changes, allowing users to exit if they disagree with approved changes.
While BadgerDAO has implemented security features like the Badger Audited Vault Evaluator (BAVE) and timelocks for governance changes, it’s important to note the platform experienced a major security incident in December 2021, resulting in the loss of $120 million. Since then, Badger has focused on rebuilding trust through enhanced audits, community governance processes, and security improvements.
The protocol's treasury also maintains a strategic insurance fund to help mitigate potential losses from unforeseen events.
The advantages of the Badger platform
According to the Badger team, the platform significantly reduces the complexity of participating in DeFi with Bitcoin compared to traditional methods. It's also capable of optimising yields across multiple protocols rather than requiring users to manually switch between strategies. This makes it a top solution for Bitcoin holders looking to earn yield while maintaining their Bitcoin exposure.
Beyond that, Badger is designed to address major issues facing Bitcoin in DeFi today: fragmentation and technical barriers. This is done by creating a unified platform where users can interact with various tokenised Bitcoin assets and DeFi protocols through a single interface.
It's also highly inclusive. While many DeFi platforms require extensive technical knowledge, Badger works to provide simple solutions for Bitcoin holders who might otherwise be excluded from DeFi opportunities, potentially bringing yield-generating opportunities to millions of Bitcoin holders.
Following a security exploit in 2021, Badger expanded its offerings with enhanced security features and multi-chain development plans, ensuring that its Bitcoin DeFi solutions remain relevant in the evolving blockchain ecosystem. The platform continues to develop new strategies and partnerships, particularly in bringing Bitcoin liquidity to emerging DeFi protocols and Layer 2 solutions.
BADGER use cases
The Badger network allows individuals and institutions to utilise their Bitcoin holdings within DeFi applications securely and efficiently, whether for yield farming, liquidity provision, or borrowing against BTC without selling it.
It is one of the first platforms to combine Bitcoin's store of value properties with DeFi yield opportunities to create a user-centric system that puts Bitcoin holders in control of their assets while still accessing the benefits of DeFi innovation.
Due to the platform's focus on security and cross-chain functionality, businesses can implement Bitcoin treasury strategies that generate yield without creating unnecessary risk exposure. This provides them with Bitcoin optimisation solutions that protect both the business and its Bitcoin holdings.
How to buy BADGER
If you're looking to incorporate BADGER into your crypto portfolio, users can easily buy and sell the token on the Tap app (after completing the account registration process). Download the app to get started.

Wanting to stake ETH but don't have the full 32 ETH required? Enter Rocket Pool – the game-changing protocol that's making Ethereum staking accessible to everyone.
Founded in 2016 and launched on mainnet in October 2021, Rocket Pool breaks down the barriers to Ethereum staking by allowing anyone to participate with as little as 0.01 ETH. Or, if you want to run a node, you'll need 8 ETH (plus some RPL as collateral) instead of the standard 32 ETH.
In this guide, we break down everything you need to know about the protocol, including its two key tokens:
- RPL: The governance token that also serves as insurance for the protocol
- rETH: A liquid token that represents your staked ETH and automatically grows in value as rewards accumulate
By democratising access to staking, Rocket Pool stays true to Ethereum's vision of decentralisation while making it possible for anyone to earn rewards from securing the network, with no massive ETH holdings required!
How Rocket Pool works
Rocket Pool's design has three main components that work together to facilitate decentralised ETH staking: smart contracts, smart node network and minipools.
The Smart Contracts Backbone
At the foundation of Rocket Pool lies a sophisticated set of smart contracts that govern all protocol operations. These contracts manage:
- Deposit pools where regular users stake their ETH
- The creation and management of minipools (validator nodes)
- The minting and burning of rETH tokens
- The staking and distribution of RPL rewards
- Protocol governance mechanisms
The smart contracts ensure that all operations happen in a trustless manner, removing the need for intermediaries and preserving the decentralised ethos of Ethereum. They incorporate various security measures, including extensive testing and multiple independent audits to safeguard user funds.
Key smart contracts include the Deposit Pool, Minipool Factory, and Token contracts. When users deposit ETH, the smart contracts either match them with node operators to create validators or mint rETH representing their stake and accumulated rewards.
Smart Node Network and Minipools explained
Rocket Pool's network consists of independent node operators running the Rocket Pool Smart Node software. This software interacts with the protocol's smart contracts and manages validator duties on the Ethereum network.
Node operators in Rocket Pool contribute 8 ETH (rather than the full 32 ETH required for solo staking), which is matched with 24 ETH from the protocol's deposit pool to form a standard 32 ETH validator. This validator unit is called a "minipool."
The process works as follows:
- A node operator installs and configures the Smart Node software
- They deposit 8 ETH and a minimum of 10% worth of ETH in RPL tokens as collateral
- The protocol matches this with 24 ETH from regular stakers
- A minipool (validator) is created and begins participating in Ethereum consensus
- When the validator earns rewards, they are split proportionally between the node operator and the deposit pool
This system creates a symbiotic relationship between those who want to stake without running infrastructure (regular stakers) and those willing to operate nodes but don't have the full 32 ETH requirement (node operators).
The minipool design is particularly innovative because it allows for fractional validator ownership while maintaining security through RPL collateral requirements. If a node operator behaves maliciously or negligently, their RPL collateral can be slashed, protecting regular stakers from potential losses.
Understanding RPL and rETH
As mentioned earlier, Rocket Pool's ecosystem revolves around two main tokens, each serving specific functions within the protocol.
What is RPL used for?
RPL (Rocket Pool Protocol Token) is the native utility and governance token of the Rocket Pool protocol, designed to align the interests of node operators with the long-term success of the protocol. Unlike rETH, which represents staked ETH, this ERC-20 token serves several specific functions:
- Node operator collateral: Node operators must stake a minimum of 10% of their ETH value in RPL tokens as security against wrongdoing. This collateral can be slashed if the node operator behaves maliciously, protecting the protocol and its users.
- Insurance mechanism: The RPL staked by node operators creates a protocol-wide insurance fund that helps secure user deposits and maintain trust in the system.
- Additional rewards: Node operators can stake up to 150% of their ETH value in RPL to receive proportional RPL rewards, incentivising greater security deposits and alignment with protocol success.
- Governance: RPL token holders have voting rights on protocol upgrades, parameter changes, and other governance decisions through the Rocket Pool DAO.
What is rETH and how does it work?
rETH is Rocket Pool's liquid staking token that represents staked ETH plus accumulated rewards. These automatically increase in value relative to ETH through a changing exchange rate rather than requiring separate reward claims.
How to stake ETH with Rocket Pool (step-by-step)
Staking ETH with Rocket Pool as a regular user (not a node operator) is straightforward and accessible to anyone with an Ethereum wallet. Here's a guide to getting started:
Option 1: Using the Rocket Pool dApp
- Connect your wallet: Visit the Rocket Pool website and navigate to the staking interface. Connect your Ethereum wallet (MetaMask, WalletConnect, etc.).
- Determine your stake amount: Decide how much ETH you want to stake (minimum 0.01 ETH).
- Approve the transaction: After reviewing the details, confirm the transaction in your wallet. This will swap your ETH for rETH at the current exchange rate.
- Receive rETH: Once the transaction is confirmed, you'll receive rETH in your wallet, representing your staked ETH plus future rewards.
Option 2: Using decentralised exchanges
- Access a DEX: Open a decentralised exchange that supports rETH/ETH pairs (Uniswap, SushiSwap, Balancer, etc.).
- Execute the swap: Trade your ETH for rETH through the exchange interface.
- Store your rETH: Keep your rETH in your wallet or utilise it in compatible DeFi protocols.
Monitoring your stake
Once you hold rETH, your rewards accumulate automatically through the increasing exchange rate between rETH and ETH. To monitor your rewards:
- Check the current rETH/ETH exchange rate on the Rocket Pool website or through blockchain explorers.
- Calculate the difference between the current value of your rETH holdings and your initial investment.
Remember that you don't need to claim rewards separately - they're built into the increasing value of your rETH tokens. When you eventually want to unstake, you can simply swap your rETH back to ETH through the Rocket Pool interface or a decentralised exchange.
How to become a Rocket Pool node operator
For those with technical expertise and a desire to become more actively involved in Ethereum's consensus mechanism, becoming a Rocket Pool node operator offers an opportunity to run validators with reduced capital requirements while earning additional rewards.
Prerequisites:
- 8 ETH for each minipool (validator) you wish to create
- At least 10% of your ETH value in RPL tokens as collateral (for maximum rewards, up to 150%)
- A computer or server that meets the minimum requirements:
- 4+ CPU cores
- 8+ GB RAM
- 100+ GB SSD storage
- Stable internet connection
- Basic command line knowledge
- Understanding of Ethereum staking principles
Step-by-step process:
- Set up your hardware and operating system: Either use a dedicated machine or a cloud service provider. Most node operators use Linux-based systems.
- Install Ethereum clients: Set up an execution client (Geth, Nethermind, etc.) and a consensus client (Prysm, Lighthouse, etc.).
- Install Rocket Pool Smart Node software: Follow the detailed instructions on the Rocket Pool documentation site to install the node software.
- Configure your node: Set up network settings, client preferences, and MEV-boost options if desired.
- Deposit ETH and RPL: Use the node software to deposit your 8 ETH and the required RPL collateral.
- Create your minipool: Once your deposits are confirmed, create a minipool which will be matched with 24 ETH from the deposit pool.
- Monitor and maintain your node: Keep your system updated, monitor performance, and participate in protocol governance if desired.
The future of Rocket Pool
As Ethereum continues to evolve, Rocket Pool is positioning itself for sustained growth and adaptation. In coming years, several key developments and trends will likely shape its trajectory.
Protocol upgrades:
The Rocket Pool development team has outlined an ambitious roadmap with several major upgrades:
- Saturn upgrade series: A comprehensive set of improvements focusing on scalability, capital efficiency, and user experience. The Saturn upgrade is a multi-phase initiative, with Saturn 0 completed and further phases underway.
- Distributed Validator Technology (DVT): Implementation of validator key distribution across multiple operators, enhancing security and reducing single points of failure.
- Greater MEV optimisation: Advanced strategies for maximising Maximal Extractable Value for stakers while maintaining ethical standards.
- Cross-chain expansion: Potential expansion to other proof-of-stake networks or layer-2 solutions that require validation services.
Scaling with Ethereum:
As Ethereum implements its scaling roadmap, Rocket Pool will adapt to support:
- Danksharding and proto-danksharding implementations
- Increasing validator requirements as Ethereum grows
- Adjustments to staking economics as Ethereum's monetary policy evolves
- Supporting specialised validation roles that might emerge in Ethereum's future
Market position and growth:
While Rocket Pool currently holds a smaller market share than some competitors, its emphasis on decentralisation potentially positions it well for sustainable growth. Here are key aspects worth keeping an eye on:
- Increasing regulatory scrutiny may favour more decentralised staking solutions
- Growing community awareness of centralisation risks could drive users toward Rocket Pool
- The protocol's conservative approach to security and upgrades builds long-term trust
How to buy Rocket Pool (RPL)
If you’re looking to accumulate RPL, you can do so securely and easily through the Tap app. Simply download the app, create an account and complete the identity verification process. Once verified, you can buy RPL with a wide range of supported cryptocurrencies or fiat currencies (through debit card or bank transfer). Ready to dive into the world of staking, or just go along for the ride? Tap’s ready for you.

Harvest Finance is a decentralised yield farming protocol that automates the process of earning maximum returns on crypto investments. Launched in 2020 on the Ethereum blockchain, it functions as a yield aggregator that automatically moves users' funds between different DeFi protocols to capture the highest available yields. It now operates on additional blockchains such as Binance Smart Chain and Polygon.
The platform was designed to solve one of the biggest challenges in DeFi yield farming: the time and expertise needed to constantly monitor and switch between different protocols to maximise returns. Instead of users having to do this manually, Harvest Finance does it automatically, making yield farming accessible to everyone.
TLDR
Automated yield farming: Harvest Finance is a DeFi protocol that automatically farms the highest yields available from various DeFi protocols and pools, optimising returns using advanced farming techniques.
Yield aggregator: Harvest Finance serves as a yield aggregator where assets are deposited into strategic vaults to maximise their yield.
Vault system: Users deposit their crypto assets into specialised vaults, receiving fTokens in return that represent their share of the vault and accumulated rewards.
Native token (FARM): FARM is the governance token that allows holders to vote on protocol parameters and share in farming revenue. FARM token holders can vote on proposals for the operational treasury and may receive a fee from Harvest operations
What is Harvest Finance (FARM)?
Harvest Finance simplifies the complex world of yield farming by creating an automated system that does the hard work for users. When you deposit your crypto into a Harvest vault, the protocol automatically deploys your funds to various DeFi platforms that offer the best returns at any given time.
Think of it like having a professional fund manager for your crypto, but instead of a human making decisions, smart contracts automatically move your money to wherever it can earn the most. The protocol automatically farms the highest yield by moving funds between farming pools on your behalf, eliminating the need for users to constantly research and switch between different platforms.
The platform supports various types of assets including stablecoins, popular cryptocurrencies, and liquidity pool tokens. When you deposit assets, you receive fTokens (like fUSDC for USDC deposits) that represent your share of the vault and track your earnings over time.
Harvest Finance's goal is to make yield farming more accessible by automating the process and optimising the potential returns using the latest farming techniques, bringing sophisticated DeFi strategies to everyday users.
Who created Harvest Finance?
The founders of Harvest Finance remain anonymous, which was common for many DeFi projects launched in 2020. The team is completely anonymous, though the project succeeded in attracting a relatively sizable community and has been involved in the community by doling out grants.
Despite the anonymous nature of the founding team, Harvest Finance has built a strong reputation in the DeFi community through its transparent operations and community involvement. The token was distributed via fair launch with no token sales to investors, demonstrating the team's commitment to decentralised principles.
The project launched during the height of the 2020 DeFi summer when yield farming became extremely popular, and the anonymous team capitalised on the growing demand for automated yield optimisation tools.
How does Harvest Finance work?
Vault Strategy System
The platform operates through a system of specialised vaults, each designed for different types of assets and risk profiles. When you deposit crypto into a vault, you receive fTokens that represent your share of that vault's total holdings.
The magic happens behind the scenes, where the protocol's strategies automatically deploy your funds to various DeFi protocols like Compound, Curve, Uniswap, and others based on where they can earn the highest yields. The system constantly monitors yield opportunities and automatically rebalances to maximise returns.
Automated Yield Optimisation
Harvest Finance's protocol design automatically farms the highest available yields and distributes the profits to users in the pool. This means users don't need to understand the complexities of different DeFi protocols or spend time managing their positions.
The protocol uses sophisticated algorithms to determine the best allocation of funds across different yield farming opportunities, taking into account factors like APY rates, smart contract risks, and gas costs for rebalancing.
Profit Sharing Model
When the automated strategies generate profits, these are shared among all users in the vault proportional to their deposits. A portion of the profits is also distributed to FARM token holders who stake their tokens in profit-sharing pools, creating an additional incentive layer for the community.
What is FARM?
FARM serves as the governance and profit-sharing token of the Harvest Finance ecosystem:
- Governance Rights: Holders can vote on protocol parameters and propose or veto the introduction of new Vaults, giving the community control over the platform's direction.
- Profit Sharing: FARM, when deposited in Profit Sharing pools, becomes a means of participating in farming revenue, allowing token holders to earn a share of the protocol's success.
- Protocol Incentives: Harvest at launch required a native crypto so as to be able to incentivise yield farmers, and allow Harvest to stake other platforms and collect rewards in return.
- Community Participation: The token creates alignment between users and the protocol's long-term success, as both benefit from higher yields and more efficient farming strategies.
FARM operates as an ERC-20 token on Ethereum, making it compatible with the broader DeFi ecosystem and easily tradeable on decentralised exchanges. While FARM is originally an ERC-20 token, it also exists on other blockchain platforms such as Polygon and Binance Smart Chain, expanding to multiple blockchains to offer yield farming opportunities across different ecosystems
How can I buy and sell FARM?
For those looking to participate in automated yield farming, FARM tokens are readily available through the Tap app. You can purchase, sell, and store FARM tokens securely while managing them alongside your broader crypto portfolio.
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