Digital Currencies
By: Sophia Paul
Nov. 14, 2025
Rethinking Traditional Money
Digital currencies offer a chance to rethink the very foundation of money. Because they aren’t tied to any single government-issued currency, they offer a new way to exchange value – almost a modern global barter system operating outside traditional regulatory frameworks.
Commonly known as cryptocurrencies, these digital assets have surged to the forefront of investment markets. Since their emergence in 2009, their returns have outpaced those of traditional equities. At its peak, for example, the digital currency Fantom posted a staggering 13,207% gain in a single year. But such sizable returns come with equally significant risk. Market crashes occur far more frequently in the crypto space than in conventional financial markets, resulting in the sector’s defining characteristic: extreme volatility.
Market Snapshot & Evaluation
One of the most important features of digital currencies is their constant motion. Unlike traditional markets, crypto markets never close, they operate 24/7/365. As a result, any snapshot of prices or performance is only a moment in time.
A look at today’s performance among leading digital currencies (ranked by market dominance) offers a rough estimate:
BTC | ~$98,000 | ROR: -2.97%
ETH | ~$3,200 | ROR: -6.63%
USDT | ~$1.00 | ROR: -0.04%
XRP | ~$2.50 | ROR: -7.09%
BNB | ~$922 | ROR: -4.05%
While the market broadly declined today, the losses were relatively contained. Still, crypto markets rarely exhibit patterns resembling traditional financial “normalcy.” That said, observable trends show that trading volumes peak between Tuesday and Thursday from 8 a.m. to 4 p.m. EST.
Global Perspective
Digital currencies have achieved remarkable global reach, with nations around the world adopting, regulating, and innovating in distinct ways.
El Salvador leads in adoption, incorporating digital currency directly into its financial system and recognizing it as legal tender. The UAE, Singapore, and Switzerland rank highest in ownership and crypto-friendly policy environments. Close behind in both ownership and general friendliness to digital assets are Vietnam, the U.S., India, Brazil, and Pakistan.
Japan stands out for security, maintaining a crypto market built around strong consumer protections and clear regulatory standards. This framework has helped create a safer and more stable environment for digital asset activity.
Switzerland
Switzerland’s appeal for crypto businesses lies in its political stability and minimal economic volatility. Long known for its neutrality and pro-innovation regulatory structure, the country has created an environment where cutting-edge industries can thrive. These factors help explain the rise of “Crypto Valley,” a hub for digital-currency companies modeled after Silicon Valley. The rapid expansion of such firms has positioned Switzerland as a major force in the global crypto ecosystem.
Tax Implications
For U.S. residents, digital currencies carry clear tax consequences. Because they are not recognized as currency under federal law, they are treated as property. This means all taxable crypto transactions are reported as property transactions, appearing as capital gains or losses on tax returns. It is rare for crypto to be classified as ordinary income, except when wages or salaries are paid directly in digital currency.
Shaping the Future
With digital currencies now accounting for roughly 3% of global GDP, and rising, it is increasingly important to adapt to their growing role. These assets offer insight into the forces driving global financial transformation. As more countries embrace digital currencies, it is likely that stronger regulations and investor protections will follow. In turn, financial planners and investors may begin treating digital currencies as mainstream alternative investments.
Ultimately, embracing this shift will position individuals and institutions alike to thrive in an evolving financial landscape.
