#BTCvsETH
Bitcoin (BTC) and Ethereum (ETH) are two distinct cryptocurrencies with different purposes and use cases.
*Key Differences:*
- *Purpose:*
- *Bitcoin (BTC)*: Primarily used as a store of value and medium of exchange, often referred to as "digital gold".
- *Ethereum (ETH)*: Designed to facilitate smart contracts and decentralized applications (dApps), making it a functional platform for developers.
- *Transaction Speed:*
- *Bitcoin*: Handles around 7 transactions per second, with block addition taking approximately 10 minutes.
- *Ethereum*: Processes about 30 transactions per second, with block addition taking around 15 seconds.
- *Consensus Mechanism:*
- *Bitcoin*: Uses Proof of Work (PoW), which requires significant computational power and energy.
- *Ethereum*: Transitioned to Proof of Stake (PoS) in 2022, a more energy-efficient and faster consensus algorithm.
- *Supply:*
- *Bitcoin*: Has a fixed supply of 21 million BTC.
- *Ethereum*: Has no hard cap on supply, with new coins issued as part of the validation process.
- *Use Cases:*
- *Bitcoin*: Mainly used for monetary transactions and as a store of value.
- *Ethereum*: Used for executing smart contracts, powering dApps, and facilitating decentralized finance (DeFi) projects.
While both cryptocurrencies have their strengths and weaknesses, Bitcoin is often seen as a more stable store of value, while Ethereum's versatility and adaptability make it an attractive platform for developers and users alike ¹ ².
