Bitcoin (BTC) and Ethereum (ETH) are the two largest cryptocurrencies but serve different primary purposes. BTC is largely seen as digital gold, a store of value, and a decentralized alternative to traditional currency, with a fixed supply of 21 million coins. Its blockchain is designed for secure, transparent value transfer.
Ethereum, on the other hand, is a decentralized platform that enables smart contracts and decentralized applications (dApps). Its native token, ETH, powers these operations ("gas fees"). While ETH also holds value, its core utility lies in facilitating a vast ecosystem of DeFi, NFTs, and other Web3 innovations. Ethereum's supply is not capped, but it employs a burning mechanism to manage inflation. It has also transitioned to a Proof-of-Stake consensus mechanism, aiming for greater energy efficiency and scalability compared to Bitcoin's Proof-of-Work.
