Bitcoin (BTC)

What is it?

Bitcoin is the world’s first cryptocurrency and the largest by market capitalization. It emerged as an alternative to the traditional financial system in response to the 2008 global crisis. The software code and concept were proposed by an individual or group under the pseudonym Satoshi Nakamoto.

The original document — the Bitcoin Whitepaper — was published on October 31, 2008, and the first transaction on the network took place on January 3, 2009 ([original Whitepaper]).

The core principle of Bitcoin is decentralization. It has no central authority and no way to "print more" coins. The maximum number of bitcoins that can ever exist is 21 million. This fixed supply makes BTC a unique store of value.

According to Blockchain.com, over 19.7 million BTC have been mined as of 2025 — more than 93% of the total supply.

Who uses Bitcoin?

Governments

Since September 7, 2021, Bitcoin has been officially recognized as legal tender in El Salvador. It is accepted by government institutions, retail chains, and citizens through the Chivo Wallet app.

Between 2022 and 2024, countries with unstable currencies — including the Central African Republic, Tanzania, and others — showed interest in legalizing BTC.

Companies and funds

• MicroStrategy is one of the largest publicly traded companies investing in BTC. As of 2025, according to their reports, the company holds over 214,000 BTC.
• Tesla — Elon Musk announced a $1.5 billion BTC purchase in 2021 and continues to hold part of the assets in crypto.
• Major investment firms like Grayscale manage cryptocurrency trusts.

Investors and individuals

According to Glassnode, more than 65% of all bitcoins have remained unmoved for over a year, indicating that most holders view BTC as a long-term investment rather than a tool for short-term speculation.

Lightning Network users

For micropayments, the Lightning Network — a second-layer protocol — is increasingly used to enable instant, near-zero-fee transactions.

According to 1ML.com, the network’s total liquidity exceeds 5,000 BTC in 2025.

Why is Bitcoin needed?

Hedge against inflation

Bitcoin is often called “digital gold.” Thanks to its limited supply and decentralized nature, it’s immune to government monetary policy and cannot be inflated by money printing.

Cross-border transfers

BTC can be sent from anywhere in the world to any other location without the need for banks, SWIFT, or currency controls. The average transaction fee usually ranges from $1 to $5 — but with the Lightning Network, transfers can cost just a few cents or even less.

Long-term store of value

For many investors, Bitcoin is part of a capital preservation and portfolio diversification strategy. While highly volatile, BTC is often seen as a high-risk but high-potential asset.

Financial independence and freedom of payments

Bitcoin cannot be frozen, confiscated, or censored. Only the holder of the private key has access to the wallet, which makes BTC a powerful tool for financial sovereignty.

Why is this important?

Limited supply

There will only ever be 21 million BTC. Every four years, a “halving” reduces the block reward by 50%. The next halving is expected in 2028. Source: bitcoinblockhalf.com

Network security

Bitcoin is the most secure blockchain network in existence. Its security is backed by a massive hash rate — consistently over 500 EH/s as of 2025 (Blockchain.com). This makes a 51% attack virtually impossible.

Technological development

• In 2021, the Taproot upgrade was implemented, improving privacy and expanding script functionality.
• Advancements in Lightning Network and sidechains (like Liquid Network) enable fast and low-cost transactions.

Examples of BTC use cases

• Long-term saving and capital transfer (HODLing)
• Cross-border remittances without intermediaries or regulators
• Donations and tips for bloggers and media (e.g., via BTCPay Server)
• E-commerce payments (some companies like Microsoft and Overstock have tested BTC payments)
• In-game transactions and services that integrate Lightning Network

USDT TRC-20

What is it?

USDT TRC-20 is the same Tether coin (1 USDT = 1 USD), but issued on the TRON blockchain using the TRC-20 standard instead of Ethereum.

The main advantages are extremely low transfer fees (often around one cent) and fast transaction speeds. TRON was founded by Justin Sun in 2017. According to Tether Transparency, over 40–45% of all USDT in circulation is on the TRON network.

Who issues it?

The issuer is the same — Tether Limited.

The TRC-20 version was launched in 2019 as a cheaper and faster alternative to ERC-20.

Who uses it?

USDT TRC-20 is most commonly used for fast P2P transfers between users, especially in countries with high banking fees or currency restrictions: the CIS, Southeast Asia, Africa, and Latin America.

It is widely used by freelancers, small businesses, and private exchangers. Many P2P platforms (Binance P2P, OKX P2P, Huobi P2P) offer TRC-20 as the most cost-effective way to buy and sell USDT.

What is it used for?

• Low-cost transfers between exchanges and wallets
• Payments for goods and services without intermediaries
• Micropayments and mass payouts

Advantages of USDT TRC-20

• TRON network fees are typically under 1 TRX (about one cent)
• Transaction confirmation takes just a few seconds
• Easy to use with mobile wallets (TronLink, TrustWallet, SafePal)

Disadvantages of USDT TRC-20

• Sending USDT TRC-20 to an ERC-20 address will result in permanent loss — the networks are incompatible
• Smaller ecosystem: unlike Ethereum, TRON has fewer major DeFi protocols and NFT platforms

Where is it used?

• Withdrawing funds from exchanges like Binance with minimal fees
• P2P transactions for cashing out or purchasing USDT
• Payments for freelance work and online services when minimizing fees is important

USDT ERC-20

What is it?

USDT is Tether’s stablecoin, pegged to the US dollar at a 1:1 ratio. On the Ethereum network, it is issued as an ERC-20 token — the most widely used and oldest version.

ERC-20 is a universal token standard on the Ethereum blockchain, which enables USDT to be used in smart contracts, DeFi, NFTs, and decentralized exchanges (DEXs).

According to Tether Transparency, the total USDT supply across all networks exceeds $100 billion as of 2025. Around 40–50% of that — tens of billions of dollars — exists on the Ethereum network as ERC-20 USDT, used in transactions daily.

Who issues it?

USDT is issued by Tether Limited, a company registered in the British Virgin Islands. The company is required to verify its reserves and publishes audited reports ([link]).

Who uses it?

ERC-20 USDT is used by traders, investors, funds, and DeFi projects. On centralized exchanges (Binance, Bybit, OKX), it is one of the most popular stablecoins for trading.

In DeFi, it is accepted by protocols like Aave, MakerDAO, Curve, and thousands of others.

What is it used for?

• Storing funds without the volatility of ETH or BTC
• Transferring assets between wallets and exchanges
• Trading on decentralized exchanges like Uniswap, SushiSwap, and Balancer
• Providing liquidity in pools or collateral in lending protocols

Advantages of USDT ERC-20

• Full compatibility with the entire Ethereum ecosystem
• Supported by all major wallets (MetaMask, TrustWallet, Ledger, Trezor)
• Widely used in DeFi and NFT applications

Disadvantages of USDT ERC-20

• Higher transaction fees due to gas costs — during network congestion, fees can reach $20–$50 per transaction
• Transaction speed depends on the gas fee set — with low fees, delays can take up to an hour

Where is it used?

• Trading on DEXs and CEXs
• Payments to freelancers and partners who only accept ERC-20
• Staking or liquidity farming in DeFi

Ethereum (ETH)

What is it?

Ethereum is a decentralized, open-source platform designed for developing and running smart contracts and decentralized applications (dApps). It holds the second-largest market capitalization among cryptocurrencies, after Bitcoin. As of 2025, Ethereum's total market cap is estimated to exceed $400 billion (CoinMarketCap). Ethereum is not just a digital currency — it’s often referred to as the “world computer” because it allows code to run on a distributed network without control by governments or corporations.

Source: ethereum.org

Who created it?

Vitalik Buterin, a Canadian programmer of Russian origin, proposed the concept of Ethereum in 2013. The mainnet officially launched on July 30, 2015. The platform is managed in a decentralized manner through the Ethereum Foundation, registered in Switzerland. Fun fact: According to Forbes (2023), Buterin’s net worth is estimated to exceed $400 million in crypto assets.

Who uses it?

• Over 250 million unique addresses (Etherscan)
• Thousands of companies — from startups to corporations like Ubisoft, Reddit, and Visa, which are testing payments or running pilot projects on Ethereum
• Developers, DeFi startups, NFT marketplaces (OpenSea, Rarible, Blur)
• Everyday users and investors

What is it used for?

• Peer-to-peer (P2P) money transfers
• Paying gas fees — transaction and smart contract execution costs
• Collateral in DeFi — e.g., MakerDAO, Aave
• Capital storage: many hold ETH as a long-term investment Currently, over $30 billion is locked in Ethereum DeFi smart contracts (DefiLlama)

Why is it important?

Ethereum is the infrastructure for over 80% of all Web3 tokens and projects: NFTs, DAOs, DEXs, DeFi. The network continues to evolve: in 2022, Ethereum transitioned to Proof-of-Stake (The Merge), reducing energy consumption by about 99% (Ethereum Foundation). Currently, scalability improvements are underway through sharding and Layer 2 solutions (Arbitrum, Optimism, zkSync).