Bitcoin vs Ethereum: Key Differences Explained

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While Bitcoin and Ethereum are both major cryptocurrencies, they serve different purposes. Let’s break down their differences.

💰 Purpose

  • Bitcoin: Created as digital money, a store of value.

  • Ethereum: Designed to run smart contracts and decentralized apps (dApps).

⛏️ Technology

  • Bitcoin: Uses Proof of Work (PoW)

  • Ethereum: Now uses Proof of Stake (PoS) after "The Merge"

🔄 Supply

  • Bitcoin: Capped at 21 million coins

  • Ethereum: No fixed supply, but now deflationary due to burning fees

📱 Use Cases

  • Bitcoin: Mostly used for transactions and holding value

  • Ethereum: Used in DeFi, NFTs, gaming, and more

⚖️ Final Thoughts

Both coins are powerful but serve different functions. Many investors hold both as part of a diversified crypto portfolio.

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