Curious whether Bitcoin or gold is the better bet? We break down the pros, cons, and what really sets them apart so you can decide what suits you best.
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Bitcoin versus gold: it's like asking whether you prefer chocolate or vanilla ice cream, except the stakes feel a bit higher when we're talking about assets that people use to preserve wealth.
This comparison has become one of the most fascinating conversations in modern finance. You'll find everyone from your tech-savvy nephew to seasoned Wall Street veterans weighing in on this debate. The reason it captures so much attention? Both assets serve similar purposes for many people in that they're often viewed as alternatives to traditional currencies and ways to maintain value over time.
Media outlets regularly feature this matchup, and it's not hard to see why. We're essentially watching a clash between the old guard and the new kid on the block, between something you can hold in your hands and something that exists purely in the digital realm.
Similarities between Bitcoin and gold
Before we dive into their differences, let's talk about what these two have in common, and honestly, it's more than you might think.
Both Bitcoin and gold operate like that friend who marches to the beat of their own drum. They don't need permission from central banks or governments to exist. Gold has been doing its own thing for thousands of years, while Bitcoin has been independently chugging along since 2009, free from the control of any single authority.
Here's where it gets interesting: both are naturally scarce. There's only so much gold buried in the earth, and Bitcoin has a built-in limit of 21 million coins. It's like having a limited-edition collectible - the scarcity is part of what makes people pay attention.
This is where the "digital gold" nickname comes from. People started calling Bitcoin this because, like gold, it's rare, it's not controlled by governments, and many view it as a way to store value. It could be gold's tech-savvy cousin who traded in the physical form for a digital existence.
Both assets have also been described as stores of value, meaning people turn to them when they want to preserve their purchasing power over time. The idea is that what you put in today will still hold meaningful value tomorrow.
Differences in utility and form
Gold has been humanity's companion for millennia. You can touch it, wear it, and even use it in your smartphone (yes, there's actually gold in there!). Industries rely on gold for everything from electronics to medical equipment. Central banks stack it in their vaults like a financial security blanket, and jewellers craft it into pieces that mark life's special moments.
Bitcoin, on the other hand, exists purely in the digital world. You can't hold it, but you can send it across the globe faster than you can say "blockchain." It's supported by a network of computers that work together to verify transactions, creating a system that operates 24/7 without taking coffee breaks.
Think of gold as the sturdy oak tree: deeply rooted, physically present, and serving multiple purposes. Bitcoin is more like the wind: you can't see it, but you can feel its effects, and it moves with incredible speed and efficiency.
Historical trends and market behaviour
Let’s take a look at how these assets have behaved over time.
Gold has earned a reputation as the steady friend who shows up when times get tough. During economic uncertainty, gold often sees increased interest as people seek stability.
Bitcoin, meanwhile, is known for its dramatic personality. It can swing from exhilarating highs to stomach-dropping lows, sometimes within the same week. This volatility means Bitcoin can experience significant price movements: some days it feels like it's reaching for the stars, other days it seems to be taking a scenic route through the valleys.
These different personalities mean they each attract different types of attention and serve different roles in people's financial lives.
Reactions to global events
Nothing reveals character quite like a crisis, and both Bitcoin and gold have had their share of testing moments.
During the 2008 financial crisis, gold saw increased demand as people sought alternatives to traditional investments. When the COVID-19 pandemic hit in 2020, gold initially attracted attention as uncertainty gripped global markets.
Bitcoin has had its own unique responses to global events. During certain periods of economic uncertainty, some have turned to Bitcoin as an alternative. However, during market stress, Bitcoin has sometimes moved in unexpected directions, reminding everyone that this digital asset often writes its own rules.
Inflationary periods have also provided interesting case studies. Gold has historically been viewed as a hedge against inflation, while Bitcoin's response has been more varied and unpredictable. The Bitcoin vs gold debate is essentially watching two different strategies play out in real-time.
Adoption and access
The way people access these assets tells its own story about our changing world.
Bitcoin has recently been making headlines with the introduction of exchange-traded funds (ETFs), making it easier for traditional investors to gain exposure without having to figure out digital wallets and private keys.
The digital nature of Bitcoin means you can access it from anywhere with an internet connection. No need to worry about storage space or security guards - just remember your password (and any other safeguards you have in place).
Gold, meanwhile, has the advantage of thousands of years of infrastructure. Banks have vaults, dealers have established networks, and there's a whole industry built around buying, selling, and storing the precious metal.
Risks and transparency
Every asset comes with its own set of considerations, and both Bitcoin and gold have their unique profiles.
Bitcoin operates in a world where regulations are still being written. There are also cybersecurity considerations, as digital assets exist in a realm where hackers and technical glitches can pose risks.
Gold has more traditional concerns. Storage and insurance can be costly, and there's always the physical risk of theft or damage. You need to think about where to keep it safe and how to protect it.
Both assets have their own transparency characteristics. Bitcoin transactions are recorded on a public ledger that anyone can view, while gold transactions often happen through traditional channels with varying levels of public visibility.
Perspectives from experts
The financial world is full of smart people with different opinions, and this topic certainly brings out diverse viewpoints.
Institutions like BlackRock have entered the Bitcoin space with ETF offerings, suggesting growing institutional interest. While the CME Group, which offers futures contracts for both assets, has observed how institutional trading has evolved for each.
These expert perspectives form part of a broader ongoing conversation about how these assets might fit into the modern financial landscape.
What's fascinating is how these viewpoints continue to evolve as both assets mature and as global economic conditions change.
Framing the question: what role might each play?
Rather than asking which is "better," perhaps the more interesting question is: what role might each play in different contexts?
Consider what qualities matter most to you in a store of value. Are you drawn to the tangible nature of physical assets, or does the digital convenience appeal to you? How do you feel about volatility: is it something you can live with, or do you prefer steadier movements?
The answer often depends on individual circumstances, goals, and comfort levels. Some people find comfort in gold's long history, while others are excited by Bitcoin's technological innovation. Some appreciate gold's physical nature, while others value Bitcoin's portability and accessibility.
These aren't questions with universal answers, they're personal considerations that vary from person to person.
Final thoughts
The Bitcoin versus gold discussion continues to evolve as both assets mature and as our understanding of their roles in modern finance deepens. Rather than viewing this as a winner-take-all scenario, perhaps the most interesting approach is to understand how each asset's unique characteristics might serve different purposes in our increasingly complex financial world.
What matters most is understanding your own needs, risk tolerance, and goals before making any financial decisions. After all, the best asset is the one that aligns with your personal circumstances and financial objectives.
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Coined in 2014, hyperbitcoinisation is the voluntary transition from an inferior currency to a superior one, referring to Bitcoin becoming the primary currency in an area. As was the case with El Salvador integrating Bitcoin into its financial service sector in 2021, the world is slowly progressing to a more inclusive space for cryptocurrencies, inching closer to the prospect of hyperbitcoinisation.
In this article, we explore this concept and what is contributing to its progress in the financial industry.
What is hyperbitcoinisation?
There are three core ideas behind the definition of hyperbitcoinisation. The first relates to a gradual transition from an inferior currency to a superior one, while the second alludes to a tipping point where fiat currencies are no longer sustainable and are abandoned for the use of cryptocurrencies. The final definition sees hyperbitcoinisation as the swift and irreversible adoption of Bitcoin as the world's primary monetary reserve.
In conclusion, hyperbitcoinisation is Bitcoin-induced currency demonetization, it's intended not to disrupt the traditional currency markets, but rather to be used alongside them. It's the language of the Bitcoin maximalist, one who sees Bitcoin as the answer to everything (unit of account, store of value and medium of exchange).
Hyperbitcoinisation would require the price to stabilize, providing a more stable economy for transactions to take place. It would also require stronger regulation in the space to ensure the protection of the people using it. While the decentralized nature of Bitcoin is often a drawing point for investors, it will require an element of regulation in order to become a legal tender and considered to be sound money.
The positive factors pointing toward hyperbitcoinization
In order for hyperbitcoinisation to take effect a number of things need to occur. For starters, Bitcoin would need to be adopted by a strong network of institutions, main street businesses, merchants, public and private companies, ETFs, central banks, governments and regular investors.
From an operating perspective, the nodes on the Bitcoin network would need to increase substantially. Currently, there are roughly 14,000 nodes around the world with the main clusters in Germany, France, the United States, and the Netherlands. In order for hyperbitcoinisation to take full effect, the network would need to expand in both product numbers and globalisation.
There are currently an estimated 400,000 daily Bitcoin users and over 100 million people holding Bitcoin. While these numbers are impressive, they represent only a small fraction of the world's population. As Bitcoin gradually moves through from the Early Adopters to Early Majority stages in the technology adoption scale, in order for hyperbitcoinisation to take full effect we would need to have transitioned to the Late Majority and Laggards segments. This would indicate that societal adoption has peaked and stabilised.
On the note of societal adoption, it is estimated that collectively around the world countries hold over 250,000 BTC, while public and private companies own 414,000 BTC, and ETFs over 800,000 BTC. This indicates that Bitcoin adoption is creeping into government and company holdings as well as traditional investment vehicles.
While there is much to be achieved, these factors all clearly indicate that the ball is in motion.
The negative factors contributing to hyperbitcoinization
The flip side of the coin shows which negative factors contribute to hyperbitcoinisation, namely central bank digital currencies (CBDC) and inflation.
CBDCs provide a strong current in the flow toward global crypto adoption. While CBDCs are not decentralized or true to the origins of cryptocurrencies, they operate in the same way and will drive populations to become familiar with digital versions of cash.
As more people become used to the concept, it is likely that they will incorporate Bitcoin and other cryptocurrencies into their daily habits as these, at their core, are more similar to cash than the CBDC alternative. They are also less monitored and offer a greater opportunity for financial freedom.
Inflation on the other hand has already played a large role in the adoption of cryptocurrencies. Following the inflation-inducing stimulus implemented by governments during the Covid-19 pandemic, many investors and businesses turned to Bitcoin to protect their capital. By the end of 2021, countries around the world were experiencing the highest inflation rates in decades.
As people lose faith in their fiat currencies and turn to cryptocurrencies, as witnessed by the incredible gains seen across the entire crypto market, this only fuels the road to hyperbitcoinisation.
In Conclusion
Monetary and economic transitions take years to be properly implemented, however, if the last two years are any indication of what's to come, hyperbitcoinisation just possibly could happen in our lifetime. While there are many, many factors that need to take place before it's even a remote possibility, the groundwork already established indicates that we're on the right path.
What started off as a joke has become an international phenomenon with a market cap that ranks it among the top 10 cryptocurrencies (not to mention price gains). As we explore what Dogecoin is, let's take a look at where the digital cash network came from, why the cryptocurrency became such a sensation and how it compares to Bitcoin.
Leading the way in the meme-based movement, Dogecoin has become the most unlikely of leaders in its field as it trades at a very attractive price. Everyone from investors to run-of-the-mill Internet users has followed the hype and invested in this meme-inspired altcoin.
Did you know that Dogecoin has more DOGE in circulation than Ethereum and Litecoin combined? Let's dive in to understand the true value behind this Internet meme-inspired cryptocurrency
Who created Dogecoin?
Dogecoin was created as a joke cryptocurrency in 2013 and is based on a Shiba Inu dog meme circulating at the time. Two developers, Billy Marcus and Jackson Palmer got together to create the cryptocurrency to poke fun at Bitcoin, which turned out to be a lot more than that almost a decade later.
What is Dogecoin?
Dogecoin is a peer to peer payment system with its native cryptocurrency, DOGE, acting as the medium of exchange. The cryptocurrency was created in December 2013 through a hard fork off of the Litecoin network. The cryptocurrency has no limit on the maximum amount of coins and currently has over 131 billion DOGE in circulation.
While a popular option as a digital cash payment method, the cryptocurrency is most commonly used as a tipping system to reward quality content on social media platforms like Twitter and Reddit. Working in a similar way as cash would in a financial transaction.
What's triggered Dogecoin's surge?
The self-proclaimed "Dogefather" and Tesla CEO Elon Musk has contributed to Dogecoin's recent success with his tweets about the cryptocurrency making news headlines around the planet. His tweets have had a significant effect on the cryptocurrency's price as published on the CoinMarketCap website.
With a similar mining style to Litecoin, Dogecoin is a popular option when it comes to trading cryptocurrencies.
How does Dogecoin work?
Using blockchain technology, Dogecoin facilitates digital transactions in a transparent and mutable way. Hard forked off of the Litecoin network, Dogecoin uses the same Scrypt technology in the Proof-of-Work protocol. Unlike Litecoin, however, the cryptocurrency can execute transactions in 1 minute.
Users simply need to create a wallet in order to store DOGE, from where they can either send and receive the cryptocurrency or simply store it. DOGE works similarly to other cryptocurrencies in this regard.
In the last year, investors have seen high gains as the celebrity-endorsed hype surrounding the cryptocurrency increased its value. As interest grew in the Shiba-meme token, so too did its market cap, pushing Litecoin out of the top 10 biggest cryptocurrencies and edging closer to Ethereum (currently in second place).
The Dogecoin foundation
In 2014 members of the Dogecoin team created a not-for-profit foundation to oversee project development and direction. This dissipated over the years and was recently relaunched in 2021 with several key new members and an inflated market capitalisation.
While co-founder Billy Markus and Dogecoin's core developer Max Keller remain on the board, two new additions have been made with the likes of Ethereum founder Vitalik Buterin as well as Jared Birchall, the manager of Elon Musk's family office.
The team meets on a monthly basis to discuss issues relating to the virtual currency, with each member taking responsibility for various aspects. Markus is responsible for overseeing the community and memes while Keller will function as the cryptocurrency technical advisor.
Buterin will serve as the blockchain and crypto advisor and Birchall as the financial and legal advisor (representing Elon Musk).
Dogecoin's following
From its initial launch, Dogecoin has had a spirited and loyal following. In its early days, the community raised funds for high profile events, like sponsoring a NASCAR driver and sending the Jamaican bobsleigh team to the 2014 Olympics.
To date, a number of high profile celebrities have put their name behind the coin, most notably Elon Musk and billionaire Mark Cuban. Musk was responsible for several waves in the crypto market in 2021, causing substantial boosts and dips in the capitalisation of the market. Most notably in May, after a tweet from Musk stating only "How much is that Doge in the window?" The DOGE price increased by 11% in mere hours.
While Dogecoin was not created to be a store of value, the Dogecoin price increases certainly brought about tons of media attention and healthy returns for investors.
Dallas Mavericks owner Mark Cuban is also a huge fan, celebrating the cryptocurrency for being "the one" when it comes to a digital medium of exchange. In 2021, the NBA team started accepting Dogecoin as a payment option for merchandise and ticket sales, incorporating blockchain into the main league.
What is the difference between Dogecoin and Bitcoin?
While both cryptocurrencies are designed to provide a medium of exchange, they differ in a number of ways. For starters, they both use the same Proof-of-Work mining concept which is based on miners solving complex mathematical problems in order to mine new blocks and control the supply.
Different from each other, the Dogecoin network can process transactions 10x faster than Bitcoin (1 minute vs 10 minutes for BTC). They also have varying inflationary statuses, with Bitcoin being deflationary in nature due to its 21 million coin cap while Dogecoin is highly inflationary as it has an unlimited supply.
While Bitcoin can be held as a store of value, Dogecoin is less supported in this area due to its lack of maximum supply and the fact that millions of DOGE are entering circulation each day. DOGE however, is better suited to being a medium of exchange.
While Bitcoin has a strong following around the world, there is a significant Twitter and Reddit community punting the coin and encouraging traders to buy the cryptocurrency. From internet meme to international top 10 traded cryptocurrency, Dogecoin has an impressive history when it comes to market value.
How do I buy Dogecoin?
In just nine months the cryptocurrency has become a legend of sorts in the crypto community (including Reddit), moved into the top 10 cryptocurrencies based on market cap, and grown 5,000% in value.
Should I immediately pour my life savings into it? Probably not. But if you're looking to add the cryptocurrency to your cryptocurrency investment portfolio, look no further than the Tap Global platform. DOGE is one of the latest cryptocurrencies to be onboarded on the mobile app.
Since Bitcoin came into existence in 2009, the use of the term fiat currency has significantly increased. But what is a fiat currency? In this article, we take a look at the origins of the term and why it's called fiat currency, how it functions, some examples of fiat, and what threat crypto has posed to it. Let’s dive in.
What is fiat money?
Fiat money is money declared as legal tender by the government and acts as a nation's currency. The term "fiat" is a Latin word and loosely translates to "by decree" which is an authoritative order with the force of law. The government declares fiat money legal tender by decree.
Fiat money acts as a national currency and is printed by the government. Citizens can use it for payments of goods and services, facilitating trade in the area.
In 2020, all currency traded internationally was officially declared as fiat money. This means that the value of fiat money isn't linked to anything physical like gold or silver but rather to the faith and credit of that government. All fiat currencies are operated by a central authority, in most cases central banks, that carry out a nation's monetary policy and are responsible for controlling its money supply.
Until 1971, foreign currencies were fixed in value relative to the US dollar whose worth was based on an amount set by Congress expressed in terms of gold ounces. That year President Richard Nixon did away with that system completely in what was called "the Nixon shock."
Fiat currency vs fiat money
Fiat currency and fiat money essentially refer to the same thing. Both represent the government-issued currency used in a country or region. There are around 180 different types of fiat currencies in use globally. Examples of fiat include the United States dollar, Canadian dollar, Euro, and British pound sterling, or Japanese yen.
The value of one fiat currency in relation to another is referred to as the exchange rate.
Fiat money vs commodity money
Fiat money is essentially the opposite of commodity money. The major difference between the two stems from their intrinsic value. In general, a commodity currency has an intrinsic value that comes from what it is made of, a physical commodity such as gold or silver coins.
Fiat currency does not have any intrinsic value and only exists because a country's government or country's central bank says it can be exchanged for other goods with equal value.
How did fiat currencies come into existence?
All money is a certificate of debt. In the past, if someone needed to be paid back for something at a later date, they would receive an IOU that said how much was owed to them and when it could be collected.
Bartering system
For example, let's say a farmer traded 2kg of flour today for ten pumpkins come harvest time.
To keep track of this arrangement and to avoid forgetting or getting confused about what was owed, the person providing the flour would be given a piece of paper indicating that it could be exchanged for pumpkins after harvest. This piece of paper effectively becomes worth ten pumpkins and could be used to trade for milk, bread, or any other goods.
The bartering system only allowed trade to happen when each person had what the other one desired. To make it more efficient, people started using something that everyone wanted as a basis for trading, a physical commodity. For a long time, rocks that shine (gold) served that purpose.
Gold to coins
However, weighing gold for each transaction was complicated, so governments started to create identical gold coins made from a specific amount of gold. They put raised lines around the edge of every coin as proof that no one shaved off any bits of gold, making trade easier since everyone knew how much each currency was worth.
Introduction of banks
However, gold is heavy to carry and became dangerous to keep on oneself at all times, so people started storing their gold in bank vaults. Bankers would provide a certificate as proof that each person owned a certain amount of gold, which could later be redeemed at the central banks for gold. This shifted the legal tender from gold to a piece of paper.
Gold to paper money
As the government was typically the largest holder of gold, it began printing its own paper currency that people could use to trade for gold at the national treasury, representing the origins of the gold standard. However, people stopped going to redeem the paper for gold and instead just used the paper itself.
Supply/demand logistics
At this stage, a currency's value was still tied to the value of gold, which had some problems in itself. Firstly, if a new source of gold emerged or another country suddenly released a significant amount of gold, the currency's value would drop. Secondly, anyone could manipulate the price of gold thereby throwing the currency's value.
Fiat money emerges
Hence, the gold standard was dropped in the 1930s. Instead, the currency became worth the amount printed on the piece of paper instead of the gold it represented. IOUs once again became the official source of money and held value "by decree" instead of based on an underlying asset.
Is fiat money still relevant today?
Since the advent of cryptocurrencies (digital currencies not managed by a central authority or government), the way we think about money has changed significantly. While mainstream adoption of these digital currencies continues to grow (several countries have declared Bitcoin as a legal tender) the use of fiat money isn't going anywhere.
Fiat currencies still hold a significant place in the global economy and will continue to do so for a long, long time. And while some grow skeptical of governments' power to mint new fiat money or the central banking system in general, it's unlikely that fiat currencies are going anywhere.
CBDCs
One new development that is gaining popularity is the CBDC, merging the worlds of fiat currency with digital currencies. The Central Bank Digital Currency is maintained and operated by central banks, uses blockchain technology to operate, is pegged to the value of the local fiat currency, and works in parallel to the national currency. Eradicating price volatility, the CBDC uses a more secure means of distributing and facilitating the movement of fiat currency.
While cryptocurrencies are unlikely to replace fiat currencies anytime soon, it's worth noting how significantly the concept of money has changed over the last century and considering how things could change in the future for fiat currency as we know it.
In a world where every crypto project claims to be 'revolutionary,' Ethereum actually walks the talk, successfully changing how we think about the internet, finance, and digital ownership.
Conceived by Vitalik Buterin in 2013 and launched in 2015, Ethereum expanded the possibilities of blockchain technology beyond simple currency transactions, introducing a world where apps can run exactly as programmed, without censorship or third-party interference.
While Bitcoin introduced us to digital money, Ethereum brought us programmable money (and much more, for the record). You may have heard it being referred to as the world's computer, this is because it allows developers to build and deploy decentralised applications (dapps) that can transform industries from finance to art, gaming to governance.
In this comprehensive guide, we'll explore what makes Ethereum special, how it works beneath the surface, and why it continues to be at the forefront of the blockchain revolution. Whether you're completely new to the concept or looking to deepen your understanding, we'll break down everything from smart contracts to NFTs, the shift to Ethereum 2.0, and what the future might hold for this groundbreaking technology.
What is Ethereum? Explained simply
Think of Ethereum as a global, open-source platform for decentralised applications. While Bitcoin is primarily designed to be digital money, Ethereum is built to be a development platform, a foundation upon which developers can create new applications that no single entity controls.
The easiest way to understand Ethereum is to compare it to your smartphone's operating system. Just as iOS or Android provides a platform for developers to build mobile apps, Ethereum provides a platform for developers to build decentralised apps. These apps run on a network of thousands of computers around the world rather than on centralised servers owned by Google or Amazon.
Ethereum is often described as a "world computer" because it's essentially a massive, distributed computing system that belongs to everyone and no one at the same time. Unlike traditional computers controlled by individuals or companies, this world computer runs programs (called smart contracts) that execute exactly as written, without the possibility of censorship, downtime, or third-party interference.
As a "second-generation blockchain," Ethereum took Bitcoin's innovation (a decentralised ledger) and added programmability to it. This advancement opened up a universe of possibilities beyond simple value transfer, allowing for complex financial instruments, digital ownership records, and even autonomous organisations to exist on the blockchain.
How Ethereum works
At its foundation, Ethereum builds on the same blockchain technology that powers Bitcoin. A blockchain is essentially a chain of blocks, where each block contains a record of transactions. What makes it special is that this record is maintained by thousands of computers (nodes) around the world rather than by a central authority like a bank.
What are smart contracts?
Where Ethereum truly shines is with smart contracts. Think of smart contracts as digital agreements that automatically execute when predefined conditions are met, like a vending machine that delivers your soda when you insert the right amount of money. These contracts are:
- Self-executing: They run automatically when conditions are met
- Immutable: Once deployed, they can't be changed
- Transparent: Anyone can verify the contract's code
- Trustless: You don't need to trust a third party; the code is the guarantee
What is Ether (ETH)?
Ether (ETH) is the native cryptocurrency of the Ethereum network. It serves two important purposes:
- As a digital currency that can be sent instantly to anyone, anywhere in the world
- As "fuel" for running smart contracts and transactions on the network
What are gas fees?
This brings us to gas fees. Just as your car needs gas to run, Ethereum operations need "gas" to execute. Gas fees are small amounts of ETH (measured in “gwei,” a subunit of ETH) paid to network participants who contribute computing power to validate transactions. These fees help keep the network secure and prevent spam or infinitely running programs from clogging the system.
When the network gets busy, gas prices rise because there's limited space in each block, making Ethereum transactions sometimes expensive during peak times.
What are token standards?
Ethereum (truly) revolutionised the cryptocurrency ecosystem with its token standards. These are frameworks that define how digital assets behave on the network.
Ethereum’s token standards are like architectural blueprints in the sense that they provide a consistent design that developers can follow to ensure every structure (token) integrates seamlessly into the broader city (Ethereum ecosystem).
The 3 main Ethereum token standards:
- ERC-20: Created the template for fungible (interchangeable) tokens, making it easy to create new tokens without building a new blockchain (although adoption still depends on design and demand). This standard powers thousands of tokens, including major stablecoins like USDC and most DeFi tokens.
- ERC-721: ERC-721 was the first standard to define non-fungible tokens on Ethereum,, however today there are additional NFT-related standards, such as ERC-2981 for royalties. This standard made possible the digital art revolution, powering collections like CryptoPunks and Bored Ape Yacht Club.
- ERC-1155: ERC-1155, introduced by Enjin, is ideal for games and metaverse applications where users need both fungible and non-fungible currencies and unique collectibles.
These standards transformed crypto by creating massive interoperability, all of a sudden tokens built on Ethereum worked instantly with hundreds of wallets and exchanges. This "plug-and-play" functionality dramatically accelerated innovation and adoption.
Ethereum's token standards have become so influential that even competing blockchains implement compatibility with them, essentially making them the industry's universal language for digital assets.
The Ethereum ecosystem
Ethereum's true power lies in its vibrant ecosystem that continues to expand in exciting ways:
Decentralised applications (dapps)
These are applications built on Ethereum that connect users and providers directly without any intermediary organisations controlling the service. Some popular examples include:
- Uniswap: A decentralised exchange for trading tokens
- Aave: A lending and borrowing platform
- OpenSea: A marketplace for digital assets
DeFi (decentralised finance)
Perhaps Ethereum's most transformative impact has been in finance. DeFi applications recreate traditional financial services like lending, borrowing, and trading, but without banks or brokers.
Instead, they use smart contracts to create protocols that operate exactly as programmed. By April 2025, the total value locked in DeFi protocols has grown to tens of billions of dollars, demonstrating significant adoption of these new financial tools.
NFTs (Non-Fungible Tokens)
NFTs represent unique digital assets - from artwork to music to virtual real estate. Unlike cryptocurrencies, where each coin is identical, each NFT has distinct properties that make it one-of-a-kind.
This technology has revolutionised digital art by enabling verifiable ownership and scarcity for digital creations, leading to an explosion in creative expression and new income opportunities for artists.
DAOs (Decentralised Autonomous Organisations)
DAOs are internet-native organisations collectively owned and managed by their members. They operate based on rules encoded in smart contracts: members vote on decisions, and the outcomes are automatically executed by code. From investment clubs to charitable foundations, DAOs are reimagining how we organise and collaborate.
Ethereum 2.0 and The Merge
In 2022, Ethereum underwent its most significant upgrade since launch, transitioning from Proof of Work (PoW) to Proof of Stake (PoS) consensus with an event known as "The Merge." This transformation addressed several key challenges:
- Environmental impact
The original Ethereum (like Bitcoin) used Proof of Work, requiring massive computing power and electricity consumption. The switch to Proof of Stake reduced Ethereum's energy usage by approximately 99.95%, addressing one of the biggest criticisms of blockchain technology.
- Scalability
Ethereum's popularity led to network congestion and high transaction fees. The move to PoS laid the groundwork for future scaling solutions, including sharding (a method of splitting the network into parallel segments to increase transaction throughput dramatically).
- Staking opportunities
Under the new system, users can "stake" their ETH (lock it up as collateral) to help secure the network and earn rewards, typically 3-5% annually. This provides a way for ETH holders to earn passive income while contributing to network security.
Ethereum vs other blockchains
Ethereum vs Bitcoin
While both use blockchain technology, they serve different purposes:
- Bitcoin: Primarily a store of value and medium of exchange
- Ethereum: A platform for building applications and executing smart contracts
Ethereum killers
Several competing platforms have emerged, each claiming to solve Ethereum's challenges:
- Solana: Offers higher transaction speeds and lower costs
- Cardano: Focuses on academic research and formal verification
- Polkadot: Created by an Ethereum co-founder to enable cross-chain interoperability
- Avalanche: Emphasises high throughput and fast finality
Of course, these benefits can come with trade-offs in scalability and ease of use.
Ethereum's advantages
Despite strong competition, Ethereum maintains significant advantages:
- First-mover advantage and massive developer community
- Highest security due to its large, distributed network
- Most extensive ecosystem of applications and tools
- Strong network effects and brand recognition
Risks and considerations
While Ethereum offers exciting possibilities, as with anything, it's important to understand the risks:
Price volatility
ETH, like most cryptocurrencies, experiences significant price swings. Since 2015, it has seen both 90% drawdowns and 1000%+ gains.
Security concerns
While the core Ethereum protocol has proven secure, smart contracts can contain bugs or vulnerabilities. High-profile hacks have resulted in hundreds of millions of dollars in losses over the years.
Regulatory uncertainty
Governments worldwide are still determining how to regulate cryptocurrencies and decentralised finance. Regulatory changes could impact certain applications or use cases.
Technical challenges
Despite improvements, Ethereum still faces challenges with scaling to meet global demand, maintaining decentralisation, and providing a seamless user experience.
The future of Ethereum
Ethereum's roadmap continues to evolve with several key developments anticipated:
Scaling solutions: "Sharding" is expected to significantly increase Ethereum's capacity by splitting the network into parallel segments, potentially enabling thousands of transactions per second.
Layer 2 growth: Solutions built on top of Ethereum like Optimism, Arbitrum, and Polygon continue to gain traction, offering lower fees and faster transactions while maintaining security by settling transactions on the main Ethereum chain.
Industry adoption: Major companies from finance to entertainment are exploring Ethereum for applications ranging from supply chain tracking to royalty distribution. Enterprise adoption is expected to accelerate as scalability improves.
Web3 integration: The vision of Web3 - a more decentralised internet where users control their own data and digital identities - is being built largely on Ethereum. This could fundamentally change how we interact with online services.
How to buy Ethereum (ETH)
If you'd like to become involved in the Ethereum platform and own the digital asset that fuels the network, you will need to purchase ETH through a trusted crypto exchange platform and set up an Ethereum wallet.
Offering a secure and convenient solution, buying and selling ETH through your Tap app is easier than you might think. With several payment options and a quick verification check, you can start trading, using or hodling ETH from your unique wallet in a matter of minutes.
Final thoughts: why Ethereum matters
Ethereum represents one of the most ambitious technological experiments of our time - an attempt to rebuild the very foundations of how we transact, collaborate, and create online. By removing intermediaries and enabling direct peer-to-peer interactions, Ethereum challenges traditional power structures and creates new possibilities for human coordination.
Whether Ethereum ultimately fulfils its vision of becoming the settlement layer for a new, decentralised internet depends on how it addresses its remaining challenges around scalability, usability, and regulation. But its impact is already undeniable, having spawned entire industries from DeFi to NFTs and inspired a generation of developers to rethink what's possible with blockchain technology.
The most fascinating aspect of Ethereum may be that we're still in the early chapters of its story. Like the early internet in the 1990s, we can see the potential but can't yet imagine all the ways this technology will transform our world in the decades to come.
Decentralized finance, or "DeFi," refers to financial services that provide many of the same features as traditional banks - like earning interest on your money and borrowing from others - but without middlemen who take a fee or charge interest, paperwork, or privacy trade-offs. A chartered accountant and Blockchain do not have much in common, but they are starting to as DeFi and FinTech take over. I
nstead of relying on financial services like banks, users can utilize smart contracts on blockchain. Cryptocurrencies ensuring even more ease of use for DeFi users, providing the hottest speeds, fees, and transparency. Defi and digital currencies are growing in popularity thanks to the perks of Blockchain technology. Let us get more into the concept and how it caters to a larger audience.
The aim and use of DeFi
Decentralized finance is the future of financial services, and it's already here. The aim of DeFi is to provide a decentralized financial services platform that is open and accessible to anyone in the world, using tech like crypto to help advance the everyday life of anyone and any business willing to give decentralization a try.
In the past decade, we've seen a rise in peer-to-peer lending platforms such as Lending Club, Patreon, BTCJam, and an explosion of digital currencies such as Bitcoin and Ethereum.
All of these developments have taken us one step closer to the decentralized future of finance that we've been dreaming about, but there's still more work to be done.
What's wrong and how can DeFi fix it
Many institutions in the financial sector are slow and expensive when it comes to providing basic services like payments. Online lender contracts can charge interest rates as high as 30 percent, and the global remittance industry charges fees that can be as high as 12 percent.
These fees and delays mean some of the most vulnerable individuals of our society are paying the highest prices for financial services when they need them most. While the traditional financial system can be slow and expensive, it doesn't have to be this way. Decentralized finance (DeFi) is an emerging category of services where trust intermediaries such as banks are replaced with cryptographic code and smart contracts, which reduces costs for everyone involved - especially when it comes to international payments.
DeFi is a new category of services that are globally accessible and built on top of blockchain infrastructure, without any charge or barrier to entry. It's also much more secure than traditional financial systems because the technology used isn't connected to a central server that can be hacked. DeFi users smart contracts applications to ensure ease of use and instant transfers of information and funds.
Your money is always yours; it's just moving from one smart contract to another. No permission from an intermediary is required in order to use it. All you need to do is have a cryptocurrency wallet, computer or mobile device, and internet connection like everyone else using DeFi services today.
DeFi isn't coming, it's already here
When you ask yourself, "where is DeFi going?", the answer is simple: everywhere. DeFi can be used from every corner of the world, and it's already available today. Innovation at its finest.
DeFi services are not theoretical. They're already being used by real people today to make real asset payments, earn interest on their digital savings, and borrow money from both friends and strangers, all without ever going through a bank or traditional financial institution. Whether you are investing, a money maker, or an asset holder, the shift to DeFi is inevitable.
Blockchain technology provides the first-ever opportunity for these separate building blocks to come together in order for the entire financial system to work seamlessly without any intermediaries, so it will only get better with time. From an economic standpoint, DeFi offers better rates and all the perks of FinTech. Cryptocurrency assets like Ethereum have seen plenty of investment opportunities arise as DeFi and Blockchain merge.
DeFi pros and cons
In order to get a complete picture of what DeFi is, it's important to understand all the good and bad parts that we are facing now. So let's dive into the details.
DeFi pros:
- The interest rate on savings and money lending is relatively high, just as it would be without intermediaries.
- Financial services are more accessible than in traditional bank systems because there aren't any barriers to entry, like non-existent internet infrastructure or bank account fees.
- Transaction and disruption times are much faster because DeFi transactions can move directly from peer to peer without having to go through intermediaries.
DeFi Cons:
- Some transactions might not be as private due to the public records of smart contracts on a blockchain (keeping that in mind, transparency is always beneficial). This however increases security because fraud or reversal can't happen.
- Access to DeFi services can be limited if you live in a part of the globe where these services aren't supported or don't have high enough adoption rates, as compared to traditional banking systems in developed countries. Regulator issues may also occur.
- There isn't a built-in mechanism for handling consumer disputes between peers because the technology simply wasn't designed with this function in mind.
- It's difficult to understand what you're getting yourself into when joining a DeFi service, since it varies from one application to the next and is based on new technology. This doesn't have to be the case in the future.
As of now, it's still the early days for DeFi and there are some challenges to overcome before we can look at it as a real alternative. There's still a lot of work to be done, but it will all pay off in the end.
As all things “metaverse” continue to dominate headlines, the virtual world has established itself as front and centre of mainstream media. Decentraland provides a virtual world where users can buy, sell and trade unique assets and engage in interactive apps and peer-to-peer communication alongside in-world payments. The world of Decentraland has seen impressive growth, and it’s about time you learnt about it.
At its core, Decentraland is a virtual reality platform that allows users to create, experience, and monetize in-house content and applications. Built on the Ethereum blockchain, Decentraland utilizes two main tokens on the platform, LAND and MANA.
LAND arenon-fungible (NFT) tokens that provide ownership rights to the digital real estate (land parcels) while MANA is the in-house currency that facilitates the sale of LAND and other goods and services available on the platform, like customising one's avatar, for instance. MANA also allows holders to vote on policy updates, subsidies for new developments, and land auctions.
Decentraland was designed to provide users access to ”new artistic medium, business opportunity, or source of entertainment.” The virtual space is made up of 90,601 individual land parcels, each measuring 16m x 16m (256 square meters), and assigned to particular co-ordinates in its “metaverse”. Each space is assigned to a LAND NFT which records the ownership.
LAND owners can then develop the land as they please, with several marked districts varying in size and theme. Holders can then lease out the land or provide paid experiences through the creation of animation and interactions experienced on their particular virtual real estate.
Who Created Decentraland?
Decentraland was created by the Decentraland Foundation, founded by Esteban Ordano and Ariel Meilich in 2015, and holds the intellectual property rights as well as maintaining the platform. Before launching, the foundation, which still holds 20% of the total MANA supply, created a decentralized autonomous organization (DAO) allowing the users to make governance decisions.
In 2017 the project underwent a successful ICO, raising the equivalent of $26 million at the time. These funds were used to drive future operations.
How Does Decentraland Work?
The core function of the Decentraland network is to track ownership of land parcels, while users engaging in the platform are required to hold MANA in order to participate.
Through a system of smart contracts each land parcel is tracked on the consensus layer, with each parcel’s own coordinates, owner, and a reference to the content within the parcel.
The content layer then holds the specifics for each parcel, including the all static audio and visuals, the placement and behavior of items, as well as P2P interactions such as gesturing, voice chat, and messaging. There is then a real-time layer that facilitates all the social interactions of the user avatars.
Decentraland also hosts a marketplace where users can create scenes and wearables and manage and exchange LAND tokens, priced in MANA.
What Is MANA?
MANA is the governance and in-house currency for the Decentraland ecosystem. With a total supply of of 2.19 billion MANA, roughly 600 million MANA have been burned in LAND transactions bringing the previous total supply down substantially.
MANA facilitates the platform’s aim of providing a customizable and shared virtual reality space that connects users around the world.
How Can I Buy MANA?
If you’d like to join the metaverse and become a part of the Decentraland virtual community, you can simply buy MANA directly from your Tap account. As part of a string of newly supported cryptocurrencies, MANA is now available for trade on the Tap app, allowing users to buy, sell and spend MANA as they please.