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Whether you’re a strong investor or just starting out, understanding your net worth is a crucial step toward gaining control over your financial health. Knowing what net worth entails and how to calculate it provides valuable insights that empower you to make informed choices and build a stronger financial future. 

In this article, we will explore the concept of net worth, discuss the factors that influence it, guide you through the calculation process, and provide practical examples to enhance your understanding.

Understanding net worth

Net worth is a comprehensive financial metric that reflects your financial standing. It represents the difference between your assets and liabilities, giving you a holistic view of your wealth. 

Unlike income, which represents your earnings over a specific period, net worth offers a long-term perspective by considering both what you own and what you owe. Understanding what net worth means allows you to evaluate your financial progress, set realistic goals, and make informed decisions about your financial well-being.

Factors affecting your net worth

There are several factors that need to be considered when calculating your net worth:

Income

Your income plays a significant role in determining your net worth. It includes earnings from various sources such as salaries, investments, and side businesses. The higher your income, the more potential you have to accumulate wealth. 

However, it's important to remember that sustainable wealth is not solely dependent on income but also on effective management of expenses.

Assets

Assets are valuable resources that contribute to your net worth. They can include investments, savings, real estate properties, and personal possessions. By acquiring appreciating assets and diversifying your portfolio, you can increase your net worth over time. Understanding the value and potential growth of your assets is crucial for making informed financial decisions.

Liabilities and Debts

When liabilities exceed assets, on the other hand, this decreases your net worth. Liabilities and debt encompass mortgages, loans, credit card balances, and any outstanding payments. Minimizing liabilities and managing debts effectively is vital for improving your net worth. 

By reducing high-interest debts and maintaining a healthy debt-to-income ratio, you can positively impact your overall financial health. A healthy debt-to-income ratio is considered to be at or below 43%, meaning that you are spending at or less than 43% of your income on debt payments.

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How to calculate net worth

Whether your goal is to improve your net worth or aspire to be one of the high-net-worth individuals in your country, calculating your net worth is an integral step to achieving these. To calculate your net worth, you will need to:

1. Write a list of all your assets and their estimated values.
2. Summarize your liabilities, including outstanding debts and obligations.
3. Subtract your total liabilities from your total assets to determine your net worth.

By regularly updating and monitoring your net worth statement, you can track your progress and identify areas for improvement.

Example of a positive net worth calculation

To illustrate what it looks like to calculate a positive average net worth, see this example below:

Step 1: Write a list of all your assets and their estimated values

​​Assets

Home: The current market value of Sarah's primary residence is $400,000.

Savings: Sarah has $50,000 in her savings account.

Investment portfolio: Sarah's investments, including stocks and bonds, are valued at $150,000.

Retirement account: Sarah has a 401(k) retirement account with a balance of $200,000.

Vehicle: Sarah owns a car, which is valued at $20,000.

Step 2: Summarize your liabilities, including outstanding debts and obligations

Liabilities

Mortgage: Sarah still owes $200,000 on her mortgage.

Student loan: Sarah has a remaining balance of $30,000 on her student loan.

Step 3: Subtract your total liabilities from your total assets to determine your net worth

Total Assets

$400,000 (Home) + $50,000 (Savings) + $150,000 (Investment Portfolio) + $20,000 (Vehicle) = $620,000

Total Liabilities

$200,000 (Mortgage) + $30,000 (Student Loan) = $230,000

Net Worth

Total Assets - Total Liabilities = $620,000 - $230,000 = $390,000

Based on these calculations, Sarah's net worth is $390,000. This positive average net worth indicates that her total assets exceed her total liabilities, representing her wealth and financial standing. It showcases her financial progress and the value of her accumulated assets.

Example of a negative net worth calculation

To illustrate what it looks like to calculate a negative net worth, see this example below:

Step 1: Write a list of all your assets and their estimated values

Assets

Car: Mark owns a car valued at $10,000.

Personal possessions: Mark has various personal possessions valued at approximately $5,000.

Step 2: Summarize your liabilities, including outstanding debts and obligations

Liabilities

Student loan: Mark has a student loan debt with an outstanding balance of $50,000.

Credit card debt: Mark has accumulated credit card debt totaling $8,000.

Medical expenses: Mark has unpaid medical bills amounting to $3,000.

Step 3: Subtract your total liabilities from your total assets to determine your net worth

Total Assets

$10,000 (Car) + $5,000 (Personal Possessions) = $15,000

Total Liabilities

$50,000 (Student Loan) + $8,000 (Credit Card Debt) + $3,000 (Medical Expenses) = $61,000

Net Worth

Total Assets - Total Liabilities = $15,000 - $61,000 = -$46,000

This reveals that Mark's net worth is -$46,000, illustrating a negative value. This negative net worth indicates that Mark's total liabilities exceed the value of his assets, serving as a clear indicator that Mark's financial obligations outweigh his accumulated wealth. This sheds light on his ongoing financial challenges and the extent of his financial struggles. 

6 reasons why it’s beneficial to grow your net worth

​​Financial security

Increasing your net worth provides a foundation of financial security. As your net worth grows, you have a greater buffer against unexpected expenses, job loss, or economic downturns. It offers a safety net to navigate through challenging times and helps you maintain stability in your financial life.

Achieve financial goals

A higher net worth enables you to achieve your financial goals and aspirations. Whether it's buying a home, starting a business, funding education, or retiring comfortably, a growing net worth provides the necessary resources and financial freedom to pursue your dreams.

Build wealth

Net worth is a measure of your wealth accumulation over time. By actively growing your net worth, you increase your overall wealth and improve your financial position. It allows you to build a stronger foundation for yourself and potentially leave a legacy for future generations.

Tap into better financial opportunities

A higher net worth opens doors to better financial opportunities. It improves your borrowing capacity, allowing you to secure favourable loan terms and interest rates when needed. Additionally, a strong net worth can attract investment opportunities and partnerships that can further boost your wealth.

Have greater flexibility and choices

Increasing your net worth provides you with more flexibility and choices in life. It affords you the freedom to make decisions based on what aligns with your long-term goals and values, rather than being constrained by financial limitations. A growing net worth expands your options and empowers you to take calculated risks or make life-changing decisions with confidence.

Peace of mind

Knowing that your net worth is growing can bring peace of mind. It reduces financial stress and anxiety, allowing you to focus on other aspects of your life. A positive net worth provides a sense of control over your financial well-being and offers peace of mind that you are on the right track towards a secure financial future.

Tips for increasing your net worth

Building and growing your net worth requires proactive steps and strategic planning. Consider the following tips as a guideline for building your net worth in a sustainable way. 

Manage income and expenses

• Increase your earning potential through career development or additional income streams.
• Practice sensible spending habits and reduce unnecessary expenses.
• Allocate a portion of your income towards savings and investments.

Grow assets and investments

• Diversify your investment portfolio to mitigate risks and maximize returns.
• Seek professional advice to identify opportunities for growth in real estate, stocks, or other assets.
• Regularly review and adjust your investment strategy based on market conditions.

Reduce debts and liabilities

• Prioritize paying off high-interest debts to minimize interest charges.
• Consolidate debts and explore refinancing options to potentially lower interest rates.
• Develop a realistic debt repayment plan and stick to it.

Long-term financial planning considerations

• Establish an emergency fund to handle unexpected expenses.
• Plan for retirement by contributing to retirement accounts and exploring other retirement investment options.
• Consider contacting a financial advisor or planner for personalized guidance and expertise.
  
  

In conclusion

Understanding net worth is a fundamental step toward taking charge of your financial future. By comprehending the factors that influence net worth, calculating it accurately, and implementing practical strategies, you can enhance your financial health and build a more secure tomorrow. 

Empower yourself with knowledge, embrace proactive financial habits, and make informed choices that align with your long-term goals. Your net worth is not just a number but a tool that can transform your financial well-being.

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Litecoin is part of the first generation of altcoins to emerge after Bitcoin ignited the crypto revolution. This peer-to-peer cryptocurrency is a popular option when it comes to transacting in the real world and crypto-enthusiasts’ portfolios, and has been a permanent feature in the top 15 biggest cryptocurrencies by market cap for years. 

What Is Litecoin?

Litecoin was launched in 2011 as an alternative to Bitcoin, providing users with a faster means of transacting money over the internet. While it was never designed to replace Bitcoin, Litecoin was created to complement the original digital money. Litecoin is often referred to as "digital silver" compared to Bitcoin being referred to as "digital gold".

Litecoin is widely considered to be one of the most successful altcoins. Created as a hard fork off of Bitcoin's blockchain, Litecoin holds many similarities in the way it functions, however, the team behind the open-source cryptocurrency incorporated several features to ensure that the network operated in a faster manner.

These include changing the amount of time it takes to process transactions, the maximum total supply, the hashing algorithm, and charging very low transaction fees. Compared to Bitcoin's 21 million total supply and 10-minute transaction processing time, Litecoin has a maximum supply of 84 million LTC and can process transactions in 2.5 minutes. It also opted to use a Scrypt hashing algorithm over the SHA-256 one.

The network is known for pioneering advanced crypto features like the Lightning Network and Segregated Witness, both of which have since been implemented by the Bitcoin network. 

How Does Litecoin Work?

As Litecoin is based on Bitcoin's software, they function in very similar ways. Through the Proof-of-Work consensus, all transactions are executed through mining. When a transaction enters the mempool (pool of pending transactions) it is soon picked up by a miner who will then ensure that all the details are accurate (including valid wallet addresses and available balances).

The first miner to solve a cryptographic puzzle is awarded the task of executing the transactions and in turn, earns a reward. At the time of writing the reward was 12.5 LTC, however, after every 840,000 blocks mined the reward halves in what is known as a halving reward. This mechanism is in place to manage the supply of new tokens entering circulation as each block mined releases minted new tokens.

As mentioned above, transactions are executed in 2.5 minutes, provided there is no congestion on the network, making it attractive to merchants and other service providers. The cost of making a transaction on the Litecoin network ranges from $0.03 or $.04 US cents.

Litecoin vs blockchain technology

Litecoin, like many other cryptocurrencies, is built on blockchain technology. It relies on the blockchain as the underlying technology to facilitate secure and decentralized transactions.

Litecoin transactions are facilitated by the blockchain through a decentralized ledger. When a transaction occurs, it is grouped with other transactions into a block. Miners then validate the transactions and add the block to the Litecoin blockchain. This process ensures the transparency and integrity of Litecoin transactions.

Blockchain plays a crucial role in securing Litecoin transactions by providing a decentralized and immutable record of all transactional activity. Each block is linked to the previous block, forming a chain, making it extremely difficult for malicious actors to alter past transactions. The distributed nature of the blockchain network ensures that no single entity has control over Litecoin transactions, enhancing security and trust in the system.

What gives Litecoin its value?

The value of Litecoin is determined by supply and demand, often determined by trade activity on exchanges. Due to its global liquidity and finite supply, Litecoin is a deflationary currency and has witnessed price gains over the years, making it an attractive option for participants in the global financial landscape over the years. 

What is Litecoin used for?

Litecoin is a peer-to-peer payment system providing both a medium of exchange and a store of value. Due to its fast transaction times and secure network, Litecoin is often favored when making transactions that are time-sensitive, i.e. paying for a coffee or at a restaurant. LTC is widely used by merchants and service providers around the world and has experienced increased crypto adoption and participation over the last decade.

Who created Litecoin?

The Litecoin project is the creation of a former Google engineer and MIT graduate named Charlie Lee. Two years after creating Litecoin, Lee would go on to become the Director of Engineering at a large cryptocurrency exchange. In 2017, Lee rejoined the team as managing director of the Litecoin Foundation, a non-profit organization dedicated to the development of the blockchain platform and its technology.

Litecoin development and community

Litecoin's development process involves a dedicated team of developers who work on improving the Litecoin software and its functionalities. It follows a transparent and open-source approach, allowing anyone to contribute to its development and propose changes.

The Litecoin software undergoes regular updates and enhancements to ensure it remains secure, efficient, and compatible with emerging technologies. These updates often introduce new features, improve performance, and address any identified vulnerabilities.

Litecoin has a vibrant and active community that actively participates in its evolution. Community members provide feedback, report bugs, and contribute to discussions on Litecoin's future development. Their contributions range from code contributions from developers to community-driven initiatives, fostering a collaborative environment and shaping the direction of Litecoin's growth.

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MKR, the governance token fueling the network, comes from the same platform that created DAI, the algorithmic stablecoin soft-pegged to the US dollar. MKR serves both the decentralized autonomous organization, MakerDAO, and the software platform, Maker Protocol, both built on the Ethereum blockchain. These two platforms generate DAI and allow users to issue and manage the DAI stablecoin. 

What is Maker (MKR)?

Developed in 2015 and officially launched in December 2017, Maker is a revolutionary project that was built to host and generate DAI, a community-managed cryptocurrency that has its value soft pegged to the US dollar. The MakerDAO forms part of the larger Maker Protocol which allows DAI to maintain its value and operate without the need for a third party. The Maker Protocol requires both tokens to operate: DAI and MKR. 

To understand MKR, one must first be familiar with the DAI stablecoin. DAI serves as a loan option for borrowers, with the platform allowing users to take out a loan in DAI tokens by locking another cryptocurrency, such as ETH. When the borrower pays back the DAI that was borrowed, they are able to reclaim the collateral used for their loan. However, if its value drops below a predefined level it could automatically be sold off.

The Maker ecosystem is one of the first DeFi projects to enter the market, years before the movement took off. The DeFi sector revolves around providing decentralized financial products powered by smart contracts to the masses. 

Though the DAI stablecoin is best known as a service offered by the Maker Protocol, the MKR token is actually the crypto asset that secures changes to maintain its functioning. The governance token MKR gives holders voting rights over the Maker Protocol's development, such as what cryptocurrencies can be accepted as collateral and the price at which these assets will be sold if liquidation is to occur. The MKR price appreciates in value based on the success of DAI. 

The Maker protocol accepts a range of cryptocurrencies, including ETH, MANA, and BAT, as collateral.

Who created the Maker platform?

Established in 2015, the Maker Protocol was developed by a team of tech-savvy developers spearheaded by Rune Christensen. As time progressed, this collective eventually organized and formed into an official entity known as the Maker Foundation, a corporation located in the Cayman Islands.

In 2017, the Maker team raised a remarkable $12 million in funding by selling MKR tokens to some of the most influential venture capital firms at the time including Andreessen Horowitz, Polychain Capital, and 1Confirmation. A year later, another $15 million worth of MKR tokens were bought by Andreessen Horowitz, who expressed the intention to help govern the DAI system by participating in the MakerDAO. 

In 2019, the project raised another $27.5 million from venture firms Paradigm and Dragonfly Capital Partners for expansion to Asia. 

How does the Maker Protocol work?

When the Maker Protocol launched, 1 million MKR tokens were created. These tokens gave holders voting rights on key decisions through a process called Executive Voting.

First, the sentiment of MKR holders is measured on a new proposal through Proposal Polling before committing any changes to the software. The Executive Vote then takes place, and once the highest amount of MKR token holders commits to a proposal and the vote is passed, the winning proposal is implemented into the Maker Protocol. The number of tokens holds more president than the number of token holders, i.e. 10 holders with 1,000 tokens each will outvote 100 token holders with 50 tokens each. 

Non-MKR holders also have the opportunity to participate in the vote via threads in the MakerDAO forum however the MKR holders have the final say.

DAI Savings Rate

MKR holders also have a say in how much DAI holders can earn if they save DAI tokens on the platform, known as the DAI Savings Rate. In previous years this amount has varied between 0% and 8.75%. Following the recent market crash, MKR holders voted to make the DAI Savings Rate zero to encourage holders to sell their DAI and bring the price back into equilibrium.

When the DAI price drops below $1, MKR holders can vote to raise the DAI Savings Rate to encourage more users to hold DAI which increases the price.

What is MKR?

MKR is an ERC-20 token and acts as a governance and utility token to the Maker Protocol with no fixed supply. The token gains value as the use of the Maker Protocol increases as the supply is reduced when the Protocol is working effectively and increased when governed poorly. MKR tokens are created or destroyed through surplus auctions and debt auctions.

Surplus Auctions

The Maker system holds a Surplus Auction when the fees collected exceed an amount decided by MKR holders. DAI that surpasses this threshold must be purchased with MKR in order to settle the auction. This MKR is then destroyed reducing the total supply and thus increasing the token price.

Debt Auctions

Conversely, if the Maker system is underperforming its locked coins are sold for a lower value than before, causing it to raise capital via a Debt Auction. Through this process, new MKR tokens are created and auctioned for DAI. This in turn increases the MKR tokens and reduces the price. 

In this light, MKR holders are incentivized to keep the platform performing optimally in order for it to generate more fees and thereby reduce the MKR supply.

How can I buy Maker (MKR) tokens?

Anyone looking to add Maker MKR tokens to their crypto portfolio can securely purchase Maker tokens through the Tap app. The mobile app allows anyone with an account to conveniently and safely purchase cryptocurrencies through an effortless trading experience. 

Users can buy /sell Maker MKR tokens and safely store the tokens in the unique crypto wallet integrated into the app. Download the Tap app today to tap into the Maker ecosystem today.

Formerly called the Matic Network, Polygon was created as a scaling solution to improve on some of the problems (including transaction price) within the blockchain network. Currently sitting within the top 20 biggest cryptocurrencies based on market cap, Polygon has caught the attention of many crypto enthusiasts. In this article, we explore what Polygon is and discover the services and use cases associated with MATIC.

By providing a framework for generating scaling solutions that are compatible with Ethereum, Polygon aims to guide that future closer to reality. The team has announced the launch of a Proof of Stake sidechain, which has already attracted some interest among the Bitcoin, decentralized apps, and cryptocurrency communities.

The much-anticipated Ethereum scalability roadmap is now coming into force, and the Polygon initiative is one of them helping to achieve this. Let's take a closer look at the platform.

What is Polygon (MATIC)?

The Polygon network enables the development of Ethereum-compatible blockchain networks and scaling protocols. Polygon is more of a protocol than a single solution. This is why one of the ecosystem's primary products is the Polygon SDK, which allows developers to create these Ethereum-compliant networks. Designed as a modular, flexible second layer, the network aims to expand Ethereum in terms of size, efficiency, usefulness, and security and in turn transform it into a full-fledged multi-chain system. 

Polygon uses a Proof-of-Stake consensus mechanism combined with the Plasma Framework. The Plasma Framework facilitates the execution of scalable and autonomous smart contracts, as proposed by Ethereum founder Vitalik Buterin. 

Through the platform's intricate technology and architecture, Polygon can process up to 65,000 transactions per second and execute block confirmation in less than two seconds. While Polygon is currently only interoperable with the Ethereum network, in the future it aims to support several other top blockchain platforms. 

Who founded Polygon / Matic?

The network was created by blockchain developers Jaynti Kanani, Sandeep Nailwal, and Mihailo Bjelic all with extensive experience building with Ethereum. The other co-founder, Anurag Arjun, is the only founding member to come from a non-programming background and serves as a business consultant and product manager.

After a successful ICO in 2017 and 2019, the team raised over $5.6 million. The Matic Network was later launched in 2017, before undergoing a rebranding in 2021 to the Polygon network as it is known today.  

How does Polygon work?

Polygon is a multi-chain platform that makes use of a network of side chains to facilitate transactions in an effective and cost-efficient manner. Bound to the Ethereum blockchain, Polygon can handle many different protocols, including the recently popular DeFi movement.

Polygon has similar functionality to other blockchain platforms like Polkadot, Cosmos, and Avalanche.

Through the platform, users are able to build Ethereum-compatible decentralized applications (dapps) using sidechain architecture and connect them to the main blockchain.

Through the PoS mechanism, users are able to stake MATIC in order to validate transactions as well as vote on network upgrades. The platform also uses a process known as PoS 'checkpointing' which revolves around a select team of block producers being appointed to each checkpoint by the stakers on the network.

These producers enable the platform to create blocks at a rapid pace as well as maintain decentralization by delegating PoS checkpoints to the main Ethereum chain. Block validation happens when periodical proofs of blocks are published by the block producers.

The Polygon network allows you to execute almost all of the same functions as Ethereum, but with fees that are significantly lower.

What is MATIC?

Matic is the native cryptocurrency to the Polygon network and gets its name from the platform's former name. MATIC is a utility token centred around providing governance rights and securing the network, as well as being used for staking and gas fees on the platform. 

As a sidechain, it runs parallel to Ethereum. It's used for fees, staking, and more. Polygon is a "layer two" or "sidechain" scaling solution that runs alongside the Ethereum blockchain - allowing for speedy transactions and low fees. The end goal of Polygon is to achieve millions of transactions per second.

The Polygon Network uses its own cryptocurrency, MATIC, to pay fees on the network, for staking, and for governance (meaning holders of the token get to vote on changes). The acronym MATIC is derived from Polygon's earlier days. Polygon was launched as Matic Network in October 2017, but developers changed their name to Polygon in early 2021.

Polygon's MATIC token is an ERC-20 standard utility token based on Ethereum. The token allows for low fees and instant transactions, just like the rest of the Polygon ecosystem. The maximum supply of MATIC is 10 billion coins, with new coins released into circulation on a monthly basis. At the time of writing roughly 70% of this total supply has entered circulation with all coins scheduled to be released into circulation by December 2022, according to the official schedule. With a maximum supply capped at 10 billion, this is making MATIC deflationary.

What factors can affect the price of Polygon (MATIC)?

There are several factors affecting the price of the Polygon token, MATIC. The most pressing factors are the demand for the token (people buying and selling the cryptocurrency) and the number of users looking to participate in staking.

Other factors include the general crypto-economics, the market sentiment, the project's fundamental and technical developments, the news surrounding both the MATIC market and cryptocurrency market in general, and how actively the token is traded on exchanges. Regulation announcements also typically affect the price of cryptocurrencies and should be monitored accordingly.

A common go-to for investors looking to diversify their crypto portfolios, Ripple is arguably one of the most interesting cryptocurrencies. With plenty of controversies and headline visibility, Ripple is pioneering a new path for cryptocurrencies and receiving as much acclaim as it is backlash. Let’s explore what is Ripple (XRP) and why it’s often caught in the spotlight.

What Is Ripple (XRP)?

When understanding what Ripple is it is necessary to understand the three pillars:

1. Ripple Labs is the company managing the various products available.
2. RippleNet is the network that facilitates global payments between financial institutions that operate on top of the distributed ledger database called XRP Ledger.
3. XRP is the cryptocurrency fueling the network and providing a more cost-effective and faster means of transacting money.  

In essence, Ripple is a digital payments platform that facilitates faster and cheaper international payment settlement, remittance systems, and asset exchange. The company provides several products catering to a wide range of financial institutions, essentially building a bridge between the blockchain world and the traditional financial sector. 

Ripple is not based on blockchain technology, and instead uses proprietary distributed ledger technology. It was designed to provide a digital monetary payment alternative to the likes of SWIFT, catering to international and remittance markets.

What is XRP?

Launched in 2013, 100 billion XRP were minted and to date 52 billion are in circulation. These coins remain in the custody of the company and are released into the system gradually (using a different mechanism to mining). 

While XRP is the native coin to the XRP Ledger, the distributed ledger technology can facilitate transactions in multiple currencies. XRP is used to provide a quick conversion between currencies.

History of XRP

Ripple was first conceived as an online payments company in 2004 by Ryan Fugger in Vancouver. Several years later and with the advent of cryptocurrencies, two developers approached Fugger to merge their concepts and create a cryptocurrency of their own. As a result, OpenCoin was established in 2012 by Chris Larsen and Jed McCaleb, with Fugger on the team. 

In September 2013, OpenCoin became Ripple Labs, which was later rebranded to Ripple in 2015. A year later, the company received one of four Bitlicences, a licence required by the state of New York to provide virtual currency activities.

How does Ripple work?

Ripple uses a more complex means of maintaining the network, dissimilar to how other cryptocurrencies like Bitcoin and Ethereum operate. The RippleNet’s ledger is essentially maintained by the XRP community and can process transactions every 3-5 seconds. 

The network is made up of independent validator nodes which verify transactions through a consensus. These nodes are typically made up of a long list of financial institutions, universities and companies outside of the blockchain realm. 

The payment system provides products and services to payment companies around the world and has been integrated into banking systems to improve outdated fiat processes. 

For instance, Ripples’s xCurrent technology was used to launch One Pay FX, a mobile app for international payments from the Spanish banking group Santander. It was also used to power MoneyTap, a mobile app in Japan that effectively connected 61 banks on a mobile app to facilitate domestic payments. Ripple’s products are consistently being implemented around the world. 

Ripple and the SEC

In 2020 one of the biggest lawsuits in the crypto world was ignited when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and two executives claiming that they violated investor protection laws. The SEC barred all US exchanges from trading XRP immediately, and a lengthy court case began. 

The court case revolves around whether Ripple is a security, with the SEC claiming the company unlawfully raised $1.3 billion in an unregistered security offering. As the case continues, each party has had their fair share of triumphs and blows, and the case is set to create a precedent for future cryptocurrency trials of similar nature.

This landmark case has been significant in the crypto world due to its potential implications for other cryptocurrencies. If the SEC's view that XRP is a security, rather than a currency, prevails, then other digital currencies could also potentially be classified as securities, subjecting them to additional regulation.

In a recent ruling in the three year case, the U.S. District Judge Analisa Torres ruled that XRP was “not necessarily a security on its face,” partially contradicting the SEC’s claims, and that the company did not break federal securities laws by selling XRP on public exchanges.

The recent decision made by Torres marked the first major triumph for a cryptocurrency firm in a lawsuit filed by the SEC. However, it is important to note that the SEC also achieved a partial success in the case with the judge stating that a portion of the token sales to institutional buyers did qualify as securities transactions.

While the SEC reviews the rulings, Ripple Chief Executive Brad Garlinghouse said that the ruling was "a huge win for Ripple but more importantly for the industry overall in the U.S." 

Ripple vs Bitcoin

When comparing XRP with the first and biggest cryptocurrency, Bitcoin, one must understand their different use cases.

Bitcoin was designed to provide the world with a digital peer-to-peer payment system and store of value while XRP was designed to facilitate international transactions providing a faster and cheaper alternative to fiat transactions. 

While Bitcoin was created to be decentralized and exempt from government and banking controls, Ripple is designed to include the centralized banking sectors in the benefits of the cryptocurrencies and provide them with the services to facilitate these benefits. 

While Bitcoin uses the process of mining through a Proof-of-Work consensus, Ripple uses a network of validators that are established outside of the cryptosphere. Its consensus system is designed to make transaction verification faster and, in the process, uses less energy.

How to tap into XRP

If you’re interested in incorporating XRP into your crypto portfolio, you will need to acquire XRP and possess a digital wallet for storing the cryptocurrency. The Tap app offers a convenient solution to buy, sell, and store XRP. Users can tap into Ripple using Tap and securely store the cryptocurrency within the app's designated wallet.

An unpredictable trend emerged in 2021 where dog-themed cryptocurrencies made a barking appearance, with Shiba Inu gaining much of the spotlight (and the value). Originally labelled a meme token, the network had much more in store for its increasingly growing following on the internet. As we explore what Shiba Inu is and how it originated, you can learn the ropes about one of the digital money coins with the biggest gains in market cap 2021.

When it came to crypto in 2021 the community was largely behind meme tokens. Heavily influenced by the likes of Elon Musk, Dogecoin and other spin-off cryptocurrencies saw an impressive increase in market value. As the main rival to Dogecoin, Shiba Inu is worth knowing about.

What is the Shiba inu coin?

Stemming from the logo of Dogecoin based off of a Shiba Inu dog from a meme, Shiba Inu was designed with the same dog in mind. The decentralized network was originally created in 2020 as an alternative to Dogecoin, but based on the Ethereum network.

The coin behind the network, SHIB, is based on an ERC-20 token standard and is only a small offering of the Shiba Inu network. There is also an exchange called ShibaSwap, where users can trade SHIB and other cryptocurrencies. Utilizing many dog references, the project's "woofpaper" (whitepaper) explains that users can also "bury" the tokens in smart contracts to earn interest, "dig" in the Puppy Pools to provide liquidity and utilize the networks other two tokens, Doge Killer (LEASH) and Bone ShibaSwap (BONE).

There is also an NFT game called Shiboshi Game and an NFT art incubator called Shiba Artist Incubator.

Why has Shiba inu been so popular?

After launching in 2020 the coin was dubbed the "Dogecoin killer" and gained mass interest on social media platforms (as well as the mainstream news). In early 2021, Coinbase added the coin to its list of supported cryptocurrencies prompting investors to send the price soaring over 40% in just two days. 2021 saw unbelievable gains for SHIB, including its ranking in the top 10 biggest cryptocurrencies by market cap.

Following a string of media announcements concerning Dogecoin (largely by Tesla founder Elon Musk), the platform leveraged on its mentions and in November 2021 recorded gains of over 60,000,000% since January of that same year. While Musk has mentioned SHIB on Twitter he has admitted to not actually owning any.

Who created Shiba inu?

Shiba Inu was created by an anonymous entity going by the name of Ryoshi, much like Satoshi Nakamoto behind the creation of Bitcoin. The network has an interesting story behind its total supply, with 1 quadrillion tokens minted at launch. It currently has a circulating supply of 549 trillion SHIB coins.

Ryoshi decided to lock 50% of the total supply in Uniswap for liquidity purposes and sent the remaining 500 trillion SHIB to Ethereum founder Vitalik Buterin. Buterin went on to burn 90% of his share and donated the remaining 10% to a Covid relief fund in India. This burning event saw an increase in market price, and of course, gained much media and website attention within the crypto community.

How does Shiba inu work?

The ShibSwap platform itself operates as a decentralized exchange, with earning capabilities via interest-bearing smart contracts. SHIB can be traded much like any other cryptocurrency and can be stored in any wallet that supports ERC-20 tokens.

The LEASH token was originally designed as a stablecoin linked to the Dogecoin price but was later changed to an ERC-20 token that allows users to stake their tokens in the liquidity pool and earn xLEASH as rewards.

The BONE token on the other hand is a governance token that is designed to provide users with voting rights on upcoming proposals on Doggy DAO.

The platform also launched 10,000 "Shiboshi" NFTs on the Ethereum blockchain in October 2021, made available for trade.

While it is often referred to as a rival to Dogecoin, the network presents many more use cases than simply a digital money system.

What is SHIB?

SHIB is the native cryptocurrency to the Shiba Inu platform. Currently holding (at the time of writing) a position in the top 20 biggest cryptocurrencies based on market cap, Shiba Inu has seen impressive results in the two years it has been on the market.

Where can I get Shiba inu?

To get your hands on SHIB you can simply buy the cryptocurrency through your Tap app. Using a range of cryptocurrencies and fiat currencies on offer, users can simply execute the trade and store of the SHIB in the unique wallet linked directly to your account.