#BTCvsETH
Bitcoin (BTC) and Ethereum (ETH) are the two biggest players in the crypto world. Here's what sets them apart:
- *Purpose and Use Case*:
- *Bitcoin*: Often seen as "digital gold", focusing on being a store of value and a decentralized peer-to-peer electronic cash system.
- *Ethereum*: A programmable blockchain enabling smart contracts, decentralized applications (dApps), and decentralized finance (DeFi).
- *Consensus Mechanism*:
- *Bitcoin*: Uses Proof of Work (PoW), which is energy-intensive.
- *Ethereum*: Switched to Proof of Stake (PoS) in 2022, making it more energy-efficient.
- *Scalability*:
- *Bitcoin*: Handles about 7 transactions per second (TPS).
- *Ethereum*: Handles around 30 TPS, with plans to improve scalability.
- *Supply*:
- *Bitcoin*: Capped at 21 million coins.
- *Ethereum*: No fixed cap, with new ETH added for staking rewards.
Investment Considerations
Choosing between BTC and ETH depends on your investment goals and risk tolerance. Bitcoin is seen as a stable store of value, while Ethereum's ecosystem drives innovation in DeFi and Web3 ¹ ².
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