#BTCvsETH What is the difference between Ethereum and Bitcoin
It is no secret to anyone with the slightest interest in the cryptocurrency market and its fluctuations that Bitcoin and Ethereum are the most popular cryptocurrencies in the world. Although both currencies rely on blockchain technology, there are some key differences between them that raise many questions about which project is better and which will have sustainability in the future. In this article, we will explore all these differences and try to clarify which of the two projects has greater trust. If you are a fan of digital currencies, please continue reading.
What is Bitcoin? And why does it dominate the cryptocurrency market?
Bitcoin is the first digital currency established in 2009. The currency aimed from its inception to be a modern electronic payment system from one party to another without the need for central authorities. Over time, Bitcoin's primary use shifted from payments to investment, as it became one of the most held assets by people hoping its value will rise in the future. Its value today ranges between 60 to 65 thousand US dollars.
Bitcoin dominates the cryptocurrency market and is considered the primary driver of prices for all currencies, being the currency with the largest market value, the oldest, and the most popular in this field.
What is Ethereum? And has it become a real competitor to Bitcoin?
Ethereum was established with the symbol ETH in 2015, with the main goal of becoming a platform that allows for the creation and execution of contracts and applications peer-to-peer without any control, permission, or interference from third parties. The market value of the currency has grown over the past years, ranking second in the crypto market behind Bitcoin, and many analysts view it with optimism, believing that it will be ready to seize leadership at the first real downturn in Bitcoin's status.
Are there similarities between Bitcoin and Ethereum?
Naturally, there are some common points between the two currencies, as shown in the following table:
Similarities and clarifications Blockchain technology Both currencies rely on blockchain technology, which operates on a decentralized ledger that records all accounts and transactions to ensure transparency and integrity. Decentralization Both currencies operate on a decentralized network, meaning they are not subject to the control of banks or government financial organizations, and transactions are regulated by several points to ensure the integrity of operations. The largest cryptocurrencies Since the digital currency boom, both currencies have dominated the central leadership in this field in terms of market value and number of traders.
However, despite these similarities, there are many differences between Bitcoin and Ethereum that we will address in the following sections in detail.
What are the main differences between Bitcoin and Ethereum?
Despite the previous similarities, there are important differences between the two projects and currencies, and these differences are as follows:
The purpose of the currency.
The technology used by both currencies.
Scalability.
Use cases.
Price.
Supply.
After learning about the differences, we will now explain each of these differences individually.
What is the purpose of Bitcoin and Ethereum?
This difference is the most important between them, as Bitcoin is seen today as an alternative to traditional money, aiming to be a decentralized digital monetary system in itself, while Ethereum is not just a cryptocurrency but an open-source platform for executing smart contracts and decentralized applications. It also hosts decentralized applications (DApps) and smart contracts that can interact without human intermediaries.
What is the difference between Bitcoin and Ethereum in terms of technology?
Although both currencies use blockchain technology, they use different types of this technology. Bitcoin uses a consensus mechanism called Proof of Work (PoW), where miners solve complex mathematical problems to validate transactions and add them to the blockchain. This process requires a significant amount of computational power and energy.
While Ethereum uses Proof-of-Stake (PoS) technology, in this technology, validators are selected to create a new block based on the amount of cryptocurrency they hold and are willing to 'stake' as collateral. It's a more energy-efficient method than Proof of Work.
What is the difference between Bitcoin and Ethereum in terms of scalability?

The consensus mechanism used by Bitcoin is not highly scalable, making the network unable to handle a large number of transactions per second, with a maximum of 7 transactions, while the proof-of-stake consensus used by Ethereum is more scalable and can process up to 30 transactions per second. Ethereum is working on a permanent solution to the scalability issues through upgrades such as transitioning to proof-of-stake and leading a system upgrade called permanent staking.
What is the difference between Bitcoin and Ethereum in use cases?
The primary use case for Bitcoin is as digital money, and many view it as 'digital gold' - a store of value and a hedge against fluctuations in traditional financial markets and global financial inflation. It is primarily used as digital currency or as a store of value.
Meanwhile, Ethereum enjoys broader use cases due to its built-in smart contract functionality, which makes it the backbone of the decentralized finance (DeFi) movement that aims to recreate traditional financial systems without the need for trusted third-party financing. Ethereum is also the preferred platform for most non-fungible tokens (NFTs), unique digital assets that can represent ownership or proof of authenticity for everything from digital art to virtual real estate.
What is the difference between Bitcoin and Ethereum in terms of price?
The price movements of Bitcoin and Ethereum have been subject to fluctuations, like most cryptocurrencies. Bitcoin has typically been the main driver of the cryptocurrency market, due to its larger market value and widespread use. When Bitcoin's price rises, it often leads to increases in the prices of other cryptocurrencies, including Ethereum, and vice versa. Naturally, Bitcoin's price movement is affected by a number of factors including: supply and demand, market sentiment, news and regulatory events, and economic events.
Although Ethereum's price is significantly influenced by Bitcoin's price, it is also affected by factors unique to Ethereum, such as updates to its platform, its use in decentralized finance, and the demand for block space. The difference today between the two currencies is significant, with the value of 1 Bitcoin equating to 20 Ethereum.
What is the difference between Bitcoin and Ethereum in terms of supply?
The cryptocurrency supply refers to the total number of coins that have been created, which can ever be created. In the case of Bitcoin, there is a maximum supply limit of 21 million coins, while Ethereum has no maximum supply limit, meaning that theoretically, an unlimited number of the currency can be created. However, in practice, this is not possible as the inflation rate in Ether is low to negative.
Which is better: Bitcoin or Ethereum?
After learning about the main similarities and differences between the two currencies in the previous sections, we will summarize all the points mentioned in the following table, allowing you to judge which of the two currencies is better.
Bitcoin BTC
Ethereum ETH
Purpose
Digital assets that preserve value
A platform for other applications
Technology
Proof of Work technology
Proof of Stake technology
Transactions
7 transactions per second
30 transactions per second
Supply
Limited to 21 million coins
Unlimited
Use cases
Alternative digital currencies to real money.
DeFi, NFTs, DAOs
Price
It is the main price determinant in the cryptocurrency market.
Affected by Bitcoin's price, and controls the price of NFTs.
What is the difference between Bitcoin and Ethereum in terms of future expectations?

Analysts believe that, based on the current market trend, Bitcoin could reach one hundred thousand US dollars by the end of 2024 and may exceed two hundred thousand by the end of 2025; however, unfortunately, another segment of analysts says that it is unlikely that Bitcoin's momentum will continue indefinitely into 2023 and 2024.
Regarding Ethereum, analysts expect it to maintain its upward trajectory and form higher highs in 2025. Moreover, with the increasing adoption and demand for Ethereum, the price of the currency could reach an all-time high of 15 thousand US dollars by the end of 2025. Some experts tend to be optimistic that Ethereum may continue to grow to 50 thousand US dollars by 2030.
What are the best platforms to buy Bitcoin and Ethereum?
There are many platforms that allow for the purchase of digital currencies of all kinds, including the two most famous ones, Bitcoin and Ethereum, among the most notable are:
Binance: It has a user-friendly interface, low trading fees, and offers 24/7 support for customers.
Coinbase: Considered one of the largest cryptocurrency exchanges in the world. It boasts the easiest and most secure ways to buy, sell, and store digital currencies.
eToro platform: One of the main features of this platform is the social trading function, which allows traders to connect with and follow successful investors' trades and replicate them on the platform.
