#BTCvsETH

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🪙 Bitcoin (BTC) vs Ethereum (ETH)

1. Purpose & Vision:

• Bitcoin was created as a decentralized digital currency — a store of value and medium of exchange, like digital gold.

• Ethereum was built as a decentralized platform for smart contracts and decentralized applications (dApps), expanding blockchain utility beyond currency.

2. Technology & Capabilities:

• BTC focuses on security, simplicity, and immutability. It doesn’t support smart contracts natively.

• ETH supports Turing-complete programming, enabling DeFi, NFTs, DAOs, and more.

3. Supply & Economics:

• BTC has a fixed supply of 21 million coins, driving scarcity.

• ETH has no hard cap, but its supply is now deflationary post-merge due to EIP-1559 and staking mechanics.

4. Consensus Mechanism:

• BTC uses Proof of Work (PoW) — energy-intensive but battle-tested.

• ETH transitioned to Proof of Stake (PoS) in 2022, significantly reducing energy usage and enabling staking.

5. Network Use & Activity:

• BTC is mostly used for transfers and long-term holding (HODLing).

• ETH powers a vast ecosystem of dApps, including Uniswap, OpenSea, and Lido.

6. Development Community:

• Ethereum has a larger developer base and faster iteration due to its broader scope.

• Bitcoin’s changes are conservative and slow, prioritizing stability.

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🚀 In Summary:

Feature Bitcoin (BTC) Ethereum (ETH)

Launched 2009 2015

Purpose Digital currency Smart contracts & dApps

Consensus Proof of Work Proof of Stake

Supply Cap 21 million (fixed) No cap (now deflationary trend)

Key Use Cases Payments, Store of Value DeFi, NFTs, dApps, DAOs

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