Bitcoin
BTC · Launched 2009- Created bySatoshi Nakamoto (pseudonym)
- Main purposeDigital money and store of value
- SupplyCapped at 21 million BTC
- ConsensusProof of Work (mining)
- Block timeAbout 10 minutes
- Smallest unitSatoshi (0.00000001 BTC)
DIGITAL ASSETS
Bitcoin vs Ethereum
Understand the general differences between two major digital assets: what each network was built for, how they work, and what that means for people who hold or use them.
Beginner Guide
Two Networks, Two Different Goals
The Big Picture
Digital Money vs a Programmable Platform
Bitcoin and Ethereum are the two largest cryptocurrency networks by market value. Both run on public blockchains, and neither is controlled by a single company or government.
Bitcoin was designed to be peer-to-peer digital money with a fixed supply. Many people now describe it as “digital gold”, a way to store value outside the traditional banking system.
Ethereum was designed as a programmable blockchain. Its native coin, Ether (ETH), pays for running applications called smart contracts, which power decentralised finance, stablecoins, NFTs and more.
SIDE BY SIDE
Bitcoin and Ethereum at a Glance
The key facts that separate the two networks, in one place.
Ethereum
ETH · Launched 2015- Created byVitalik Buterin and co-founders
- Main purposePlatform for smart contracts and apps
- SupplyNo fixed cap; part of fees is burned
- ConsensusProof of Stake (since 2022)
- Block timeAbout 12 seconds
- Smallest unitWei (0.000000000000000001 ETH)
| Feature | Bitcoin (BTC) | Ethereum (ETH) |
|---|---|---|
| Launch | January 2009 | July 2015 |
| Core idea | Peer-to-peer electronic cash with scarce supply | A world computer that runs code (smart contracts) |
| Supply model | Hard cap of 21 million; new issuance halves about every 4 years | No hard cap; new ETH is issued to validators and a share of fees is burned |
| How the network agrees | Proof of Work: miners compete using computing power | Proof of Stake: validators lock up 32 ETH to propose and confirm blocks |
| Energy use | High, because mining requires specialised hardware and electricity | Low; the 2022 switch to Proof of Stake cut energy use by over 99% |
| Programmability | Simple scripting focused on secure transfers | Full smart contracts, mainly written in Solidity and run on the EVM |
| Transaction fees | Paid in BTC; rise when blocks are full | Paid as “gas” in ETH; rise with network demand |
| Scaling approach | Lightning Network for fast, small payments | Layer 2 rollups such as Arbitrum, Optimism and Base |
| Common uses | Long-term holding, savings, cross-border transfers | DeFi, stablecoins, NFTs, tokens, DAOs and Web3 apps |
IN DETAIL
How Each Network Works
A closer look at the design choices behind Bitcoin and Ethereum.
Asset 01 · Bitcoin
Scarce Digital Money
Bitcoin was introduced in a 2008 white paper by Satoshi Nakamoto and went live in January 2009. It lets people send value directly to each other without a bank in the middle.
Its most famous rule is the 21 million coin limit. New bitcoins are released to miners, and that reward halves roughly every four years in an event called the “halving”. This predictable, shrinking supply is why many compare Bitcoin to gold.
Asset 02 · Ethereum
A Programmable Blockchain
Ethereum was proposed by Vitalik Buterin in 2013 and launched in July 2015. Beyond sending coins, it lets developers deploy smart contracts: programs that run exactly as written on the blockchain.
Every action on Ethereum costs a fee called “gas”, paid in ETH. Since 2021, part of every fee is permanently burned, which can reduce the overall supply when the network is busy.
Consensus
Mining vs Staking
Every blockchain needs a way for thousands of computers to agree on which transactions are valid. Bitcoin and Ethereum now use very different methods.
Bitcoin uses Proof of Work. Miners run specialised machines that race to solve a mathematical puzzle. The winner adds the next block and earns new BTC plus fees. This makes attacks very expensive, but it uses a lot of electricity.
Ethereum uses Proof of Stake. Since “The Merge” in September 2022, validators lock up (stake) ETH as a security deposit instead of burning energy. Honest validators earn rewards; dishonest ones can lose part of their stake.
WHAT PEOPLE USE THEM FOR
Real-World Use Cases
The different designs lead to different everyday uses.
01
Store of Value (Bitcoin)
Many holders treat Bitcoin as long-term savings, attracted by its fixed supply and its independence from any single country.
02
Payments (Bitcoin)
Bitcoin can move value across borders at any time. The Lightning Network makes small payments faster and cheaper.
03
DeFi (Ethereum)
Decentralised finance apps let people lend, borrow and trade through smart contracts instead of traditional intermediaries.
04
Stablecoins (Ethereum)
Many dollar-linked stablecoins, such as USDT and USDC, are issued on Ethereum and move across its network.
05
NFTs and Tokens (Ethereum)
Ethereum standards like ERC-20 and ERC-721 let anyone create tokens, digital collectibles and proof-of-ownership records.
06
DAOs and Web3 Apps (Ethereum)
Communities can run shared treasuries and voting through code, and developers can build apps without a central server.
Scaling
Handling More Users
Both networks limit how many transactions fit into each block to stay secure and decentralised. When demand is high, fees go up.
Bitcoin relies mostly on the Lightning Network, a second layer where users open payment channels and settle the final balance on the main chain.
Ethereum relies on Layer 2 “rollups” such as Arbitrum, Optimism and Base. They bundle many transactions together and post a summary to Ethereum, cutting costs for users.
WHICH ONE FITS?
Different Tools for Different Goals
Bitcoin and Ethereum are not direct replacements for each other. Many people hold both because they serve different purposes.
Simplicity
Bitcoin is easier to understand: a scarce asset with one main job.
Flexibility
Ethereum supports thousands of apps, tokens and services built on top.
Supply Predictability
Bitcoin's issuance schedule is fixed; Ethereum's supply changes with network use.
Energy Profile
Ethereum's Proof of Stake uses far less energy than Bitcoin mining.
IMPORTANT TO KNOW
Risks to Consider for Both
Well-known does not mean risk-free. Understand these points before buying or using either asset.
Price Volatility
Both BTC and ETH can rise or fall sharply in a short time. Only commit money you can afford to see drop in value.
Smart Contract Risk
Apps built on Ethereum can contain bugs or be exploited. Using DeFi adds risk on top of holding ETH itself.
Custody and Security
Lost private keys or seed phrases usually mean lost funds. Scams and phishing target holders of both assets.
Regulation and Tax
Rules differ by country and can change. Check the tax and legal position where you live before investing.
NEED GUIDANCE?
Talk to Us Before You Decide
This page is for education only and is not financial advice. Our team can walk you through how Bitcoin, Ethereum and other digital assets fit your goals.
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