#BTCvsETH
Bitcoin (BTC) and Ethereum (ETH) are the pillars of the crypto market, each with distinct roles.
Bitcoin (BTC) is the "digital gold," designed as a decentralized currency and a store of value. It uses Proof of Work (PoW) and has a limited supply of 21 million coins, which reinforces its scarcity. Its primary purpose is the secure transfer of value.
Ethereum (ETH) is a "world computer" platform for smart contracts and decentralized applications (dApps). Its cryptocurrency, Ether (ETH), is used for transactions and as collateral. It transitioned to Proof of Stake (PoS), which reduces its energy consumption. Unlike Bitcoin, it does not have a fixed supply cap, but it burns fees, which can make it deflationary.
Both have a significant influence on the market: Bitcoin as the leader by market capitalization, setting the overall trend, and Ethereum driving innovation in DeFi and NFTs. Their price movements are often correlated, and the increase in Ethereum dominance indicates a growing interest in altcoins and the technologies it drives. Both are attracting increasing institutional investment.