#BTCvsETH Bitcoin (BTC) vs Ethereum (ETH): A Comparison

Bitcoin and Ethereum are the two largest and most well-known cryptocurrencies, but they serve very different purposes and have distinct characteristics. Here’s a side-by-side comparison:

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🟡 Bitcoin (BTC)

Purpose:

• Digital currency / store of value (often called “digital gold”)

Launch Date:

• January 2009

Founder:

• Satoshi Nakamoto (pseudonymous)

Supply Cap:

• 21 million BTC (fixed)

Consensus Mechanism:

• Proof of Work (PoW)

Primary Use Cases:

• Peer-to-peer payments

• Store of value

• Hedge against inflation (for some investors)

Network Focus:

• Security, decentralization, and simplicity

Smart Contracts:

• Limited, not natively supported

Block Time:

• ~10 minutes

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🔵 Ethereum (ETH)

Purpose:

• Decentralized computing platform for smart contracts and dApps

Launch Date:

• July 2015

Founder:

• Vitalik Buterin + others

Supply Cap:

• No fixed supply (but issuance is reduced over time)

Consensus Mechanism:

• Proof of Stake (PoS) since Ethereum 2.0 (Merge in 2022)

Primary Use Cases:

• Smart contracts

• Decentralized applications (DeFi, NFTs, DAOs)

• Token creation (ERC-20, ERC-721, etc.)

Network Focus:

• Flexibility, programmability

Smart Contracts:

• Native and core feature

Block Time:

• ~12 seconds

Investment Perspective

• Bitcoin: Seen as a long-term hedge, like gold. Lower volatility relative to altcoins. More conservative.

• Ethereum: Considered more like a tech platform (comparable to an early-stage internet company), with higher growth potential but also more risk.