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What is the difference between Bitcoin and Ethereum?

Published on
22 Apr, 2025 | 09:41

Purpose and vision

Bitcoin was created to be a decentralized form of money — digital cash that can’t be controlled by governments or banks. Ethereum, on the other hand, was designed as a platform for smart contracts and decentralized applications (dApps).

Technology and functionality

Bitcoin is more limited on purpose — its simplicity helps keep it secure and reliable. Ethereum is more flexible and programmable, enabling features like NFTs, DeFi protocols, and token creation.

Monetary policy

Bitcoin has a fixed supply of 21 million coins, making it deflationary. Ethereum doesn’t have a hard cap, but after recent updates, it introduced mechanisms to reduce supply over time through burning.

Use cases and adoption

Bitcoin is mostly seen as a store of value (digital gold), while Ethereum powers an entire ecosystem of applications. Both have strong communities and wide adoption, but serve different roles in the crypto space.

Live Bitcoin price illustration with upward chart and Bitcoin logo – bitcoin24.com
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Source: CoinGecko