Bitcoin vs. Other Coins
Is Bitcoin different from Ethereum and others?
Compare Bitcoin to altcoins and understand where it stands in the crypto space.
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.
Bitcoin came first
Bitcoin was the original cryptocurrency, launched in 2009. It introduced the concept of decentralized digital money and paved the way for all other coins. That’s why it stands apart from the rest.
Definition of altcoins
“Altcoin” means “alternative coin” — anything that isn’t Bitcoin. While technically all other coins fit this label, the term often implies smaller, newer, or less established projects.
Unique position in the market
Bitcoin has the strongest brand, the largest market cap, and the most decentralized structure. It’s often seen as digital gold — while altcoins are considered more experimental or utility-driven.
Community and culture
The Bitcoin community emphasizes security, stability, and long-term value. Altcoin communities often focus on innovation, speed, or specific use cases. This cultural divide further separates Bitcoin from the rest.
Definition and purpose
A stablecoin is a cryptocurrency that’s designed to maintain a stable value, usually pegged to a fiat currency like the US dollar or euro. It combines blockchain technology with price stability.
How stablecoins are backed
There are different types of stablecoins:
- Fiat-backed: Each token is backed 1:1 by money held in reserve (e.g. USDC, USDT).
- Crypto-backed: Backed by other cryptocurrencies, with overcollateralization (e.g. DAI).
- Algorithmic: Use smart contracts to balance supply and demand, but are riskier (e.g. UST – now collapsed).
Why stablecoins matter
Stablecoins make it easy to transfer value without the volatility of Bitcoin or Ethereum. They are used for trading, payments, and as on/off ramps between crypto and fiat systems.
Risks to consider
Not all stablecoins are equally safe. Transparency, reserves, and regulation vary. It’s important to research how a stablecoin is structured before using or holding it.
