#BTCvsETH
Bitcoin (BTC) vs. Ethereum (ETH)
Bitcoin and Ethereum are the two largest and most well-known cryptocurrencies, but they serve different purposes and have distinct characteristics. Here's a comparison across key aspects:
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1. Purpose
Bitcoin (BTC):
Created as a digital alternative to money, focused on peer-to-peer payments and store of value.
Often referred to as "digital gold."
Ethereum (ETH):
Designed as a platform for decentralized applications (dApps) and smart contracts.
ETH is the fuel ("gas") that powers the Ethereum network.
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2. Technology
Simpler scripting language (limited functionality).
More focused on security and stability.
Slower development and change.
Advanced smart contract capabilities via the Ethereum Virtual Machine (EVM).
Frequent upgrades (e.g., The Merge: transitioned to proof-of-stake).
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3. Consensus Mechanism
Bitcoin: Proof-of-Work (PoW) – energy-intensive mining.
Ethereum: Now Proof-of-Stake (PoS) – more energy-efficient, relies on validators.
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4. Supply
Fixed maximum supply: 21 million BTC.
Deflationary by design.
No fixed supply, but burning mechanisms (e.g., EIP-1559) help reduce inflation.
ETH may become deflationary depending on network activity.
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5. Use Cases
Store of value, cross-border payments, hedge against inflation.
Smart contracts, NFTs, DeFi (decentralized finance), DAOs, token creation (ERC-20, ERC-721).
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6. Speed and Cost
Slower (~10 min block time), lower transaction throughput.
Generally lower fees but can spike during congestion.
Faster (~12 sec block time), higher throughput.
Higher gas fees, although layer 2 solutions (like Arbitrum, Optimism) are addressing this.
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7. Security and Maturity
Bitcoin: Most battle-tested and secure network; more conservative development.
Ethereum: More complex and evolving rapidly; more attack surface due to smart contracts.
