#BTCvsETH Let's dive into the differences between Bitcoin (BTC) and Ethereum (ETH).

*Key Differences*

- *Purpose*: Bitcoin is primarily used as a digital store of value or "digital gold," while Ethereum is a decentralized platform for building and executing smart contracts and decentralized applications (dApps).

- *Consensus Mechanism*: Bitcoin uses Proof of Work (PoW), whereas Ethereum uses Proof of Stake (PoS), which is more energy-efficient and allows for faster transactions.

- *Transaction Speed*: Bitcoin processes about 5-7 transactions per second, while Ethereum handles around 30 transactions per second.

- *Block Time*: Bitcoin's block time is approximately 10 minutes, whereas Ethereum's block time is around 12-14 seconds.

- *Supply*: Bitcoin has a fixed supply of 21 million coins, while Ethereum has no fixed cap, but its recent updates have introduced a burn mechanism to offset inflation ¹ ².

*Investment Perspective*

When deciding between Bitcoin and Ethereum, consider your investment goals and risk tolerance ¹:

- *Buy Bitcoin if*: You're looking for a proven store of value, a hedge against inflation, and a relatively stable long-term investment.

- *Buy Ethereum if*: You're interested in the future of decentralized applications, smart contracts, and innovation in blockchain technology.

*Market Performance*

Both cryptocurrencies have shown significant growth, but their market performances differ. Bitcoin's market capitalization is around $1.9 trillion, while Ethereum's is approximately $400 billion+. Historically, during extended bull markets, Ethereum has increased at a faster rate than Bitcoin ¹ ².