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The beginning in 2008, Satoshi Nakamoto in the creation of Bitcoin

Blockchain computers were first proposed in 2008 by Satoshi Nakamoto in the Bitcoin whitepaper. Those original ideas have since been dramatically expanded by developers and researchers around the world. Blockchain computers are new types of computers where the unique capability is trust between users, developers, and the platform itself.

Although the Bitcoin whitepaper is now more than 10 years old, we believe we are still early in the crypto movement. Crypto is purely a software movement and doesn’t depend on a hardware buildout, in contrast to, say, the internet, which required laying cables and building cell towers. Second, the space is developing extremely rapidly, partly because the code, data, and knowledge is largely open source, and partly because of the increasing inflow of talent.

Active Bitcoin Holders


Cumulative return in %

Active Ethereum Holders


Cumulative return in %

In 2013, since Bitcoin had no functionality, Vitalik Buterin created Ethereum

Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform.

The platform allows anyone to deploy permanent and immutable decentralized applications onto it, with which users can interact. Decentralized finance (DeFi) applications provide a broad array of financial services without the need for typical financial intermediaries like brokerages, exchanges, or banks, such as allowing cryptocurrency users to borrow against their holdings or lend them out for interest. Ethereum also allows for the creation and exchange of non-fungible token (NFTs), which are non-interchangeable tokens connected to digital works of art or other real-world items and sold as unique digital property.

Wide range of digital cryptocurrency types from stablecoins, tokens and NFT’s

Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). Stablecoins are altcoins that are designed to maintain a stable level of purchasing power such as Tether, Binance, Dai, Terra. Ethereum also allows for the creation of unique and indivisible tokens, called non-fungible tokens (NFTs). Since tokens of this type are unique, they have been used to represent such things as collectibles, digital art, sports memorabilia, virtual real estate, and items within games.

Distribution by loan type in %

  • Stablecoins
  • Tokens
  • NFT's
  • Staking Platforms

Staking Pairing Rewards Strategy

Cryptocurrency staking in decentralized crypto networks is seen as the exposition of native digital assets to a risk/reward scenario. Effectively it is the process of creating new blocks and validating transactions, similar to “mining” in Proof of Work. Crypto staking is the process of locking up crypto holdings in order to obtain rewards or earn interest. As for the staking rewards, the earnings/rewards will be generated by an additional token of value. All staking/pairing are subject to impermanent loss (IL) which is the risk that liquidity providers take in exchange for fees they earn in liquidity pools.

Crypto Assets by Total Staked

Solana (SOL) 74.94%
Ethereum 2.0 (ETH) 7.9%
Cardano (ADA) 68.79%
Avalanche (AVAX) 60.39%
Terra (LUNA) 40.05%

Executive Order on Ensuring Responsible Development of Digital Assets

U.S. Department of The Treasury

November 1, 2021

The President’s Working Group on Financial Markets (PWG), joined by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), released a report on stablecoins. Stablecoins are a type of digital asset generally designed to maintain a stable value relative to the U.S. dollar. While today stablecoins are primarily used to facilitate trading of other digital assets, stablecoins could be more widely used in the future as a means of payment by households and businesses.

Federal Reserve Board releases Money and Payments: The U.S.Dollar in the Age of Digital Transformation

U.S. The Federal Reserve

January 20, 2022

The Federal Reserve Board on Thursday released a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency, or CBDC. It invites comment from the public and is the first step in a discussion of whether and how a CBDC could improve the safe and effective domestic payments system. The paper does not favor any policy outcome. The paper summarizes the current state of the domestic payments system and it concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.

President’s Working Group on Financial Markets Releases Report and Recommendations on Stablecoins

U.S. Presidential Actions

March 09, 2022

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Policy. Advances in digital and distributed ledger technology for financial services have led to dramatic growth in markets for digital assets, with profound implications for the protection of consumers, investors, and businesses, including data privacy and security; financial stability and systemic risk; crime; national security; the ability to exercise human rights; financial inclusion and equity; and energy demand and climate change.

FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets

U.S. Presidential Actions

March 09, 2022

Outlines First Whole-of-Government Strategy to Protect Consumers, Financial Stability, National Security, and Address Climate Risks Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies. Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.

Fact Sheet: Framework for International Engagement on Digital Assets

U.S. Department of The Treasury

July 07, 2022

Today, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, the Administrator of the U.S. Agency for International Development (USAID), and the heads of other relevant agencies, delivered to President Biden a framework for interagency engagement with foreign counterparts and in international fora as directed in the President’s Executive Order on Ensuring Responsible Development of Digital Assets (March 9, 2022). The Executive Order outlined an interagency approach to address the risks and harness the potential benefits of digital assets and their underlying technology, including through international engagement to adapt, update, and enhance adoption of global principles and standards for how digital assets are used and transacted.

Buying and selling cryptocurrency is subject to a number of risks and may result in significant losses. Hashrate Capital, LLC or its subsidiaries does not make any financial recommendations nor any financial advice regarding buying or selling cryptocurrency or digital currency. All information is considered for educational and informational purpose in nature. Consider seeking advice from your financial and tax advisor. All custody of and buying and selling in cryptocurrency is performed at your own risk. Buying, selling, and holding cryptocurrencies is not regulated in many states, including the State of California, Nevada, Hawaii and where prohibited by law.