#BTCvsETH

Here's a concise comparison of Bitcoin (BTC) vs Ethereum (ETH) in key areas as of mid-2025:

🔹 Purpose & Use Case

Bitcoin (BTC):

Digital gold / store of value

Primarily used for peer-to-peer payments and holding wealth

Ethereum (ETH):

Smart contract platform

Foundation for DeFi, NFTs, DAOs, and dApps

🔹 Technology

BTC:

Blockchain with UTXO model

Uses Proof of Work (PoW)

ETH:

Account-based model

Runs on Proof of Stake (PoS) after The Merge

🔹 Speed & Scalability

BTC:

~7 transactions per second (TPS)

Lightning Network helps scale

ETH:

~15–30 TPS (base layer)

Scales with Layer 2s (e.g., Arbitrum, Optimism) + Danksharding in progress

🔹 Supply & Tokenomics

BTC:

Fixed supply: 21 million BTC

Deflationary by design (halvings every 4 years)

ETH:

No hard cap, but post-Merge burn mechanism (EIP-1559) may make ETH deflationary

🔹 Adoption & Ecosystem

BTC:

Widely adopted as a store of value

Institutional interest, ETFs, nation-state backing (e.g., El Salvador)

ETH:

Core of Web3 and DeFi ecosystems

Thousands of tokens, dApps, and protocols rely on Ethereum

🔹 Market Performance (as of July 2025)

BTC:

Dominance ~50–52%

Price driven by macro trends, halving cycle

ETH:

Strong utility-driven demand

ETH/BTC ratio fluctuates between 0.05–0.07

🔹 Security

BTC:

Most secure blockchain via PoW hash power

ETH:

Highly secure post-PoS with strong validator set

🔹 Community & Development

BTC:

Conservative, focused on stability

ETH:

Rapid innovation, frequent upgrades (e.g., Dencun, Cancun)

🟩 Summary

Feature Bitcoin (BTC) Ethereum (ETH)

Goal Store of value Smart contract platform

Supply Fixed Dynamic (burning active)

Consensus PoW PoS

Ecosystem Simple, secure Complex, innovative

Scalability Limited (base layer) Expanding with L2s

Utility Money Apps, DeFi, NFTs, etc.