#BTCvsETH In the world of digital currencies, Bitcoin (BTC) and Ethereum (ETH) stand out as the largest and most important projects in the market. But what is the fundamental difference between them? And why do some investors prefer one over the other? Here’s a simplified and comprehensive comparison between the giants:
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📌 First: Origin and Purpose
• Bitcoin (BTC):
Launched in 2009 by an anonymous figure named Satoshi Nakamoto. Its primary goal: to be a decentralized alternative payment method to traditional money.
• Ethereum (ETH):
Launched in 2015 by Vitalik Buterin. Its goal is broader than Bitcoin, as it is a platform for creating smart contracts and decentralized applications (dApps).
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📌 Second: Technology and Use
• BTC:
• Limited-function network, focused on transferring value.
• Lower transaction speed (7 transactions/second).
• Programmable like Ethereum.
• ETH:
• Fully programmable (Solidity language).
• Supports smart applications, decentralized finance, NFTs, blockchain games…
• Higher speed (around 30 transactions/second, increasing with developments).
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📌 Third: Supply and Inflation
• BTC:
• Fixed cap: only 21 million coins.
• Seen as 'digital gold'.
• ETH:
• No final cap, but the burning mechanism (EIP-1559) has significantly reduced inflation.
• Gradually becoming a deflationary asset.
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📌 Fourth: Security and Decentralization
• Both are highly secure and operate through different proof mechanisms:
• BTC: Proof of Work (PoW).
• ETH: transitioned to Proof of Stake (PoS) since the Merge update in 2022.
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📌 Fifth: Investment and Future
• BTC:
• Seen as a store of value.
• Accepted by institutions and banks as a hedging asset.
• ETH:
• Considered an investment in the future of decentralized internet.
• More diverse in uses, but more prone to technical volatility.
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Summary:
• #BTC represents the first digital asset, trust, and a hedge.
• #ETH represents evolution, innovation, and the infrastructure of the Web3 world.
