#BTCvsETH Let's break down the key differences between Bitcoin (BTC) and Ethereum (ETH).

*Purpose*

- *Bitcoin (BTC)*: Designed as a decentralized digital currency and store of value, often referred to as "digital gold". Its primary purpose is to facilitate peer-to-peer transactions without the need for central authorities.

- *Ethereum (ETH)*: Built as a decentralized platform to support smart contracts and decentralized applications (dApps), making it a global computer for various uses beyond payments.

*Consensus Mechanism*

- *Bitcoin (BTC)*: Uses Proof-of-Work (PoW), a consensus mechanism that requires miners to solve complex puzzles to validate transactions and secure the network. This process is energy-intensive.

- *Ethereum (ETH)*: Transitioned to Proof-of-Stake (PoS), a more energy-efficient consensus mechanism where validators stake their ETH to secure the network and validate transactions.

*Scalability*

- *Bitcoin (BTC)*: Handles around 7 transactions per second, with solutions like the Lightning Network being developed to improve scalability.

- *Ethereum (ETH)*: Handles around 30 transactions per second, with plans to implement sharding to increase capacity and reduce network congestion.

*Supply*

- *Bitcoin (BTC)*: Has a capped supply of 21 million BTC, making it a deflationary asset.

- *Ethereum (ETH)*: Has no hard cap on supply, with new ETH being added to the circulating supply to fund staking rewards.

*Use Cases*

- *Bitcoin (BTC)*: Mainly used as a store of value and for speculative investment.

- *Ethereum (ETH)*: Used for a wide range of applications, including ²:

- *Decentralized Finance (DeFi)*: Lending, borrowing, and trading platforms.

- *Non-Fungible Tokens (NFTs)*: Unique digital assets representing art, collectibles, and more.

- *Gaming*: Play-to-earn games and virtual worlds.

- *Metaverses*: Virtual reality platforms and experiences.

Ultimately, the choice between Bitcoin and Ethereum depends on your investment goals, risk tolerance, and understanding of each cryptocurrency's underlying technology and use cases.