#BTCvsETH

Bitcoin (BTC) and Ethereum (ETH) are the two largest and most well-known cryptocurrencies, but they have significantly different purposes and underlying architectures:

Bitcoin (BTC): The "Digital Gold"

* Purpose: Bitcoin was primarily created as a decentralized digital currency and a peer-to-peer "electronic money" system. Its main function is to transfer value between users without the need for financial intermediaries. It is often compared to digital gold due to its programmed scarcity.

* Supply: It has a maximum supply limit of 21 million coins, making it deflationary by nature and potentially contributing to its value. The issuance of new Bitcoins is halved approximately every four years (halving).

* Technology: It uses a blockchain that focuses on the security and immutability of transactions. It operates under a Proof of Work (PoW) consensus algorithm, which means miners compete to solve cryptographic problems and validate transactions.

* Uses: Primarily as a store of value, medium of exchange for payments (both everyday and international), and as an investment.

Ethereum (ETH): The Programmable Platform

* Purpose: Ethereum is much more than just a simple digital currency. It is a decentralized open-source platform that enables the creation and execution of "smart contracts" and decentralized applications (dApps). Its native cryptocurrency, Ether (ETH), is used to pay transaction fees (gas) and to power operations within the network. It is sometimes referred to as a "world computer" due to its flexibility.

* Supply: Unlike Bitcoin, Ethereum does not have a fixed maximum supply. While there is a maximum limit of 120 million Ether, the issuance can vary and is not as rigidly limited as Bitcoin.

* Technology: Although it initially used Proof of Work, Ethereum has made a significant transition to a Proof of Stake (PoS) consensus mechanism with the upgrade.