{"id":366967,"date":"2024-11-29T10:15:39","date_gmt":"2024-11-29T10:15:39","guid":{"rendered":"https:\/\/www.techopedia.com\/?p=366967"},"modified":"2024-11-29T10:15:39","modified_gmt":"2024-11-29T10:15:39","slug":"bitcoin-vs-ethereum","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/bitcoin-vs-ethereum","title":{"rendered":"Bitcoin vs. Ethereum Compared: A Crypto Investor&#8217;s Guide"},"content":{"rendered":"<p><a href=\"https:\/\/www.techopedia.com\/definition\/27193\/bitcoin-btc\">Bitcoin<\/a> (BTC) or <a href=\"https:\/\/www.techopedia.com\/definition\/32571\/ethereum-cryptocurrency\">Ethereum<\/a> (ETH)? This is a key question in the minds of many crypto investors who want to allocate their capital in the best way possible.<\/p>\n<p>Understanding the technologies behind these <a href=\"https:\/\/www.techopedia.com\/definition\/27531\/cryptocurrency\">cryptocurrencies<\/a> and learning what makes them special is key to making sound investment decisions.<\/p>\n<p>In this article, we talk about the key features, use cases, risks, and market outlook for BTC and ETH in 2025.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<h2><span id=\"key_takeaways\">Key Takeaways<\/span><\/h2>\n<ul>\n<li>Bitcoin is a peer-to-peer payment network. Ethereum is a decentralized app store.<\/li>\n<li>Bitcoin&#8217;s limited supply and halving features have given it a store-of-value status.<\/li>\n<li>Ethereum is the birthplace of decentralized finance.<\/li>\n<li>A bill to create a strategic Bitcoin reserve was introduced in the US Congress in 2024.<\/li>\n<li>ETH has underperformed BTC and L1 rivals in 2024, but experts say ETH&#8217;s challenges are not &#8220;existential.&#8221;<\/li>\n<\/ul>\n<\/div><\/div>\n<div>\n    <section class=\"toc-sticky w-100 bg-white \">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\"\n                 aria-controls=\"multiCollapse1\"\n                 data-bs-target=\"#multiCollapse1\">\n                <button\n                        class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\"\n                >\n                    <i class=\"icon-chevron-up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n                <span class=\"toc-main-title-permanent\">Table of Contents<\/span>\n            <\/div>\n            <div\n                    class=\"collapse my-3\"\n                    id=\"multiCollapse1\"\n            >\n                <ol class=\"StepProgress\">\n                                                                        <li class=\"StepProgress-item current\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"key_takeaways\"\n                               onclick=handleScrollToTitle(\"key_takeaways\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Key Takeaways<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"bitcoin_vs_ethereum_explained\"\n                               onclick=handleScrollToTitle(\"bitcoin_vs_ethereum_explained\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Bitcoin vs. Ethereum Explained<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"what_are_the_key_differences_between_bitcoin_ethereum_comparison_table\"\n                               onclick=handleScrollToTitle(\"what_are_the_key_differences_between_bitcoin_ethereum_comparison_table\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">What Are the Key Differences Between Bitcoin &amp; Ethereum? Comparison Table<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"btc_vs_eth_use_cases_features\"\n                               onclick=handleScrollToTitle(\"btc_vs_eth_use_cases_features\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">BTC vs. ETH Use Cases &amp; Features<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"bitcoin_vs_ethereum_overview_which_is_right_for_you\"\n                               onclick=handleScrollToTitle(\"bitcoin_vs_ethereum_overview_which_is_right_for_you\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Bitcoin vs. Ethereum Overview: Which Is Right for You?<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"pros_cons_of_ethereum_vs_bitcoin_investment\"\n                               onclick=handleScrollToTitle(\"pros_cons_of_ethereum_vs_bitcoin_investment\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Pros &amp; Cons of Ethereum vs. Bitcoin Investment<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"eth_vs_btc_market_outlook_for_2025_beyond\"\n                               onclick=handleScrollToTitle(\"eth_vs_btc_market_outlook_for_2025_beyond\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">ETH vs BTC: Market Outlook for 2025 &amp; Beyond<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"the_bottom_line_should_i_buy_bitcoin_or_ethereum\"\n                               onclick=handleScrollToTitle(\"the_bottom_line_should_i_buy_bitcoin_or_ethereum\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">The Bottom Line: Should I Buy Bitcoin or Ethereum?<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"faqs\"\n                               onclick=handleScrollToTitle(\"faqs\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"references\"\n                               onclick=handleScrollToTitle(\"references\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">References<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                    <\/ol>\n                <div class=\"toc-sticky__container__disperse\"><\/div>\n                <div class=\"toc-sticky__btn-top justify-content-center\">\n                    <button class=\"btn btn-link d-flex align-items-center\" onclick={btnTop()}><p>Show Full Guide<\/p><img decoding=\"async\"\n                                src=\"\/wp-content\/plugins\/table-of-contents\/assets\/images\/arrow-up-circle.svg\"\n                                alt=\"arrow-up-circle\">\n                    <\/button>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n    <div class=\"toc-sticky-list\">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\" aria-controls=\"multiCollapse2\" data-bs-target=\"#multiCollapse2\">\n                <button class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\">\n                    <i class=\"icon-chevron-up up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n            <\/div>\n            <div  class=\"collapse my-3\" id=\"multiCollapse2\">\n                <ol class=\"StepProgress\">\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item current \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"key_takeaways\"\n                                   onclick=handleScrollToTitle(\"key_takeaways\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Key Takeaways<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"bitcoin_vs_ethereum_explained\"\n                                   onclick=handleScrollToTitle(\"bitcoin_vs_ethereum_explained\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Bitcoin vs. Ethereum Explained<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"what_are_the_key_differences_between_bitcoin_ethereum_comparison_table\"\n                                   onclick=handleScrollToTitle(\"what_are_the_key_differences_between_bitcoin_ethereum_comparison_table\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">What Are the Key Differences Between Bitcoin &amp; Ethereum? Comparison Table<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t\n\t\t\t\t\t\t <span class=\"show_moretoc\">Show Full Guide<\/span>\n\t\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"btc_vs_eth_use_cases_features\"\n                                   onclick=handleScrollToTitle(\"btc_vs_eth_use_cases_features\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">BTC vs. ETH Use Cases &amp; Features<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"bitcoin_vs_ethereum_overview_which_is_right_for_you\"\n                                   onclick=handleScrollToTitle(\"bitcoin_vs_ethereum_overview_which_is_right_for_you\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Bitcoin vs. Ethereum Overview: Which Is Right for You?<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"pros_cons_of_ethereum_vs_bitcoin_investment\"\n                                   onclick=handleScrollToTitle(\"pros_cons_of_ethereum_vs_bitcoin_investment\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Pros &amp; Cons of Ethereum vs. Bitcoin Investment<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"eth_vs_btc_market_outlook_for_2025_beyond\"\n                                   onclick=handleScrollToTitle(\"eth_vs_btc_market_outlook_for_2025_beyond\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">ETH vs BTC: Market Outlook for 2025 &amp; Beyond<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"the_bottom_line_should_i_buy_bitcoin_or_ethereum\"\n                                   onclick=handleScrollToTitle(\"the_bottom_line_should_i_buy_bitcoin_or_ethereum\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">The Bottom Line: Should I Buy Bitcoin or Ethereum?<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"faqs\"\n                                   onclick=handleScrollToTitle(\"faqs\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">FAQs<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                   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srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Bitcoin-BTC-Techopedia-explains-300x149.jpeg 300w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Bitcoin-BTC-Techopedia-explains-768x382.jpeg 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Bitcoin-BTC-Techopedia-explains-83x40.jpeg 83w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Bitcoin-BTC-Techopedia-explains.jpeg 1024w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/strong><\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<p>Bitcoin is the most valuable cryptocurrency <a href=\"https:\/\/www.techopedia.com\/definition\/30246\/blockchain\">blockchain<\/a> in the world, with a <a href=\"https:\/\/www.techopedia.com\/definition\/market-cap-market-capitalization\">market capitalization<\/a> of over <strong>$1.88 trillion<\/strong> as of November 2024.<br \/>\n<\/div><\/div>\n<p>It is designed to be a <a href=\"https:\/\/www.techopedia.com\/definition\/25777\/peer-to-peer-network-p2p-network\">peer-to-peer<\/a> electronic cash payment network that allows anyone to make online payments without going through a financial institution.<\/p>\n<p>Bitcoin is powered by a <a href=\"https:\/\/www.techopedia.com\/definition\/decentralization\">decentralized<\/a> network of <a href=\"https:\/\/www.techopedia.com\/definition\/31867\/bitcoin-mining\">miners<\/a> who validate and facilitate transactions. This makes Bitcoin transactions <a href=\"https:\/\/www.techopedia.com\/definition\/permissionless\">permissionless<\/a>, censorship-resistant, 24\/7, and open to all.<\/p>\n<h3>Ethereum: Decentralized Platform for Applications<\/h3>\n<p><img decoding=\"async\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Ethereum-ETH-Techopedia-explains-300x135.jpg\" alt=\"Ethereum-ETH-Techopedia explains\" width=\"1200\" height=\"541\" class=\"aligncenter wp-image-366977\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Ethereum-ETH-Techopedia-explains-300x135.jpg 300w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Ethereum-ETH-Techopedia-explains-768x347.jpg 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/Ethereum-ETH-Techopedia-explains.jpg 1024w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<p>Ethereum, on the other hand, is the second most valuable public blockchain in the world, with a market capitalization of <strong>$436.4 billion<\/strong> as of November 2024.<br \/>\n<\/div><\/div>\n<p>While Bitcoin focuses on peer-to-peer payments, Ethereum is designed to be a decentralized global platform for applications. You can compare it to Apple&#8217;s App Store or Google&#8217;s Play Store.<\/p>\n<p>Unlike corporate-controlled App Store and Play Store, Ethereum is permissionless, meaning that anyone can build and use <a href=\"https:\/\/www.techopedia.com\/definition\/33409\/decentralized-application-dapp\">decentralized applications<\/a> (DApps) on Ethereum.<\/p>\n<p>Ethereum pioneered the use of <a href=\"https:\/\/www.techopedia.com\/definition\/32499\/smart-contract\">smart contracts<\/a>, programmable code which is executed automatically when predetermined conditions are met, on blockchains.<\/p>\n<blockquote><p>&#8220;While Bitcoin was the world&#8217;s first decentralized, peer-to-peer digital currency and is considered the world&#8217;s first digital gold, Ethereum was the first global computing platform analogous to an App store in a smartphone, allowing developers and entrepreneurs to launch decentralized internet services,&#8221; <a href=\"https:\/\/www.21shares.com\/en-eu\/research\/ethereum-primer-q4-2023\" target=\"_blank\">said<\/a> crypto asset manager 21Shares in a research report.<\/p><\/blockquote>\n<h2><span id=\"what_are_the_key_differences_between_bitcoin_ethereum_comparison_table\">What Are the Key Differences Between Bitcoin &amp; Ethereum? Comparison Table<\/span><\/h2>\n<p>Bitcoin and Ethereum were created with different use cases. In the table below, you will find a summary of the key differences between Bitcoin and Ethereum.<\/p>\n<div class=\"su-table su-table-responsive su-table-alternate\">\n<table>\n<tbody>\n<tr>\n<th><strong>Feature<\/strong><\/th>\n<th><strong>Bitcoin<\/strong><\/th>\n<th><strong>Ethereum<\/strong><\/th>\n<\/tr>\n<tr>\n<td>Purpose<\/td>\n<td>Peer-to-peer cash payment network, store-of-value asset<\/td>\n<td>Decentralized smart contract platform for applications<\/td>\n<\/tr>\n<tr>\n<td>Genesis block<\/td>\n<td>January 2009<\/td>\n<td>July 2015<\/td>\n<\/tr>\n<tr>\n<td>Founders<\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/satoshi-nakamoto\">Satoshi Nakamoto <\/a>(pseudonymous)<\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/vitalik-buterin\">Vitalik Buterin<\/a>, Gavin Wood, Charles Hoskinson, Mihai Alisie, Jeffrey Wilcke, Anthony Di Iorio, Amir Chetrit and Joseph Lubin.<\/td>\n<\/tr>\n<tr>\n<td>Consensus mechanism<\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/33594\/proof-of-work-pow\">Proof-of-work<\/a><\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/33595\/proof-of-stake-pos\">Proof-of-stake<\/a><\/td>\n<\/tr>\n<tr>\n<td>Max supply<\/td>\n<td>21 million tokens<\/td>\n<td>No max supply cap<\/td>\n<\/tr>\n<tr>\n<td>Block time<\/td>\n<td>10 minutes<\/td>\n<td>10 to 12 seconds<\/td>\n<\/tr>\n<tr>\n<td>Smart contract support<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Scalability<\/td>\n<td>Through blockchain upgrades and micropayment channels<\/td>\n<td>Through blockchain upgrades and layer two <a href=\"https:\/\/www.techopedia.com\/definition\/rollup\">rollups<\/a><\/td>\n<\/tr>\n<tr>\n<td>Use cases<\/td>\n<td>Payments, store-of-value<\/td>\n<td>Decentralized applications, real world asset tokenization<\/td>\n<\/tr>\n<tr>\n<td>Competition in the crypto sector<\/td>\n<td>None<\/td>\n<td><a href=\"https:\/\/www.techopedia.com\/definition\/solana-sol\">Solana<\/a>, BNB Chain and other L1s<\/td>\n<\/tr>\n<tr>\n<td>Spot ETFs<\/td>\n<td>Approved in January 2024<\/td>\n<td>Approved in July 2024<\/td>\n<\/tr>\n<tr>\n<td>Digital asset commodity status<\/td>\n<td>Confirmed by CFTC and US SEC Chair Gary Gensler<\/td>\n<td>Confirmed only by CFTC<\/td>\n<\/tr>\n<tr>\n<td>Energy consumption<\/td>\n<td>Bitcoin mining is energy-intensive<\/td>\n<td>Ethereum uses 99.9% less energy compared to Bitcoin<\/td>\n<\/tr>\n<tr>\n<td>Token creation<\/td>\n<td>Yes, through inscriptions<\/td>\n<td>Yes, through smart contracts<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><span id=\"btc_vs_eth_use_cases_features\">BTC vs. ETH Use Cases &amp; Features<\/span><\/h2>\n<p>In this section, we focus on how Ethereum is different from Bitcoin when it comes to utility and features.<\/p>\n<p>An overview of the use cases of Bitcoin and Ethereum will help you understand the key properties of the two premier crypto blockchains.<\/p>\n<h3>What Is Bitcoin Used For?<\/h3>\n<h4>1. Decentralized Peer-to-Peer Payments<\/h4>\n<p>Bitcoin offers its users an alternative to <a href=\"https:\/\/www.techopedia.com\/top-15-strongest-currencies-in-the-world\">fiat currencies<\/a>. Value can be transferred over the Bitcoin network without having to rely on commercial banks.<\/p>\n<p>While fiat currency payments require the approval of banks to go through, Bitcoin transactions are permissionless. Users do not need to go through the lengthy process of creating bank accounts to use the Bitcoin network. All you need is to download a free-to-use <a href=\"https:\/\/www.techopedia.com\/definition\/cryptocurrency-wallet\">crypto wallet<\/a> to start making Bitcoin payments.<\/p>\n<p>Most importantly, the Bitcoin payment network is global, censorship-resistant, and runs 24\/7.<\/p>\n<h4>2. Cross-Border Payments<\/h4>\n<p>The global nature of cryptocurrencies makes Bitcoin a convenient asset to make <a href=\"https:\/\/www.techopedia.com\/definition\/cross-border-payments\">cross-border payments<\/a>.<\/p>\n<p>The traditional finance system requires users to wait lengthy processing time, often prolonged by banking holidays and clearance. Add banking fees and foreign exchange conversion fees to it, and you have a system that is inferior to crypto networks when it comes to cross-border payments.<\/p>\n<p>Bitcoin transactions are typically confirmed within 10 minutes. Users only need to pay <a href=\"https:\/\/www.techopedia.com\/definition\/gas-fee-ethereum\">gas fees<\/a> to miners to send tokens from one wallet to another.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Forex costs are a scandal. Esp for Indian residents (like freelancers) who get small payments. We looked at $1000 transfer. Costs eat away 4.4%. How? Bank commission, GST on commission, forex spread, GST on forex amount. Read more: <a href=\"https:\/\/t.co\/ZVwlXzkzR5\" target=\"_blank\">https:\/\/t.co\/ZVwlXzkzR5<\/a>. Story by <a href=\"https:\/\/twitter.com\/Shiprasorout?ref_src=twsrc%5Etfw\" target=\"_blank\">@Shiprasorout<\/a> <a href=\"https:\/\/t.co\/n2pP6Nd66w\" target=\"_blank\">pic.twitter.com\/n2pP6Nd66w<\/a><\/p>\n<p>&mdash; Neil Borate (@ActusDei) <a href=\"https:\/\/twitter.com\/ActusDei\/status\/1582574239655153664?ref_src=twsrc%5Etfw\" target=\"_blank\">October 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h4>3. Digital Gold<\/h4>\n<p>Bitcoin is referred to as &#8220;digital gold&#8221; due to its <a href=\"https:\/\/www.techopedia.com\/can-bitcoin-ever-rival-gold-as-a-store-of-value\">inflation hedge property<\/a> and store-of-value status.<\/p>\n<p>Bitcoin derives this property due to its limited supply. Only 21 million BTC tokens can ever be mined.<\/p>\n<p>We also have to talk about Bitcoin&#8217;s <a href=\"https:\/\/www.techopedia.com\/definition\/halving\">halving<\/a> feature which reinforces its inflation hedge property. Halving refers to a rule coded into the Bitcoin blockchain which reduced the number of BTC tokens emitted by half roughly every four years.<\/p>\n<p>For example, before April 2024, Bitcoin emitted 6.25 BTC tokens per block. After Bitcoin&#8217;s fourth halving event which occurred on April 19, 2024, Bitcoin emissions were reduced by 50% to 3.125 BTC tokens per block.<\/p>\n<h4>4. Diversification<\/h4>\n<p>Bitcoin is also used as an investment asset for investors who wish to <a href=\"https:\/\/www.techopedia.com\/investing\/how-to-build-an-investment-portfolio\">diversify their portfolios<\/a> beyond <a href=\"https:\/\/www.techopedia.com\/investing\/how-to-invest-in-stocks\">equities<\/a>, debt, real estate, and <a href=\"https:\/\/www.techopedia.com\/investing\/gold-price-forecast\">gold<\/a>.<\/p>\n<p>It is seen as a unique asset that does not react to macroeconomic conditions the same way traditional finance assets may respond.<\/p>\n<p>Over the last 12 months, as of November 28, 2024, the 30-day Pearson correlation of Bitcoin to <a href=\"https:\/\/www.techopedia.com\/investing\/sp500-forecast\">US equity benchmark index S&amp;P 500<\/a> has ranged between -0.86 to +0.86, data compiled by <a href=\"https:\/\/www.theblock.co\/data\/crypto-markets\/prices\/btc-pearson-correlation-30d\" target=\"_blank\">The Block<\/a> showed.<\/p>\n<h3>What Is Ethereum Used For?<\/h3>\n<h4>1. Decentralized Applications (Dapps) &amp; Decentralized Finance (DeFi)<\/h4>\n<p>Ethereum&#8217;s biggest advantage over Bitcoin is its programmability, which allows it to host some of the most popular DApps in the world.<\/p>\n<p>The world&#8217;s most valuable smart contract platform is the birthplace of <a href=\"https:\/\/www.techopedia.com\/definition\/decentralized-finance-defi\">DeFi<\/a>, where iconic dApps such as <a href=\"https:\/\/www.techopedia.com\/definition\/uniswap-uni\">Uniswap<\/a> (UNI), <a href=\"https:\/\/www.techopedia.com\/definition\/makerdao\">MakerDAO<\/a> (MKR) and <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/aave-price-prediction\">Aave<\/a> (AAVE) all started their journey.<\/p>\n<p>On Ethereum, you can trade cryptocurrencies, stake tokens, participate in crypto lending and borrowing, create custom crypto tokens, buy <a href=\"https:\/\/www.techopedia.com\/definition\/34529\/non-fungible-token-nft\">non-fungible tokens<\/a> (NFTs), and play blockchain games.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"fr\" dir=\"ltr\">DeFi Renaissance \ud83d\udc7b <a href=\"https:\/\/t.co\/Uy8I3W0pHO\" target=\"_blank\">https:\/\/t.co\/Uy8I3W0pHO<\/a><\/p>\n<p>&mdash; Aave (@aave) <a href=\"https:\/\/twitter.com\/aave\/status\/1859031081670095093?ref_src=twsrc%5Etfw\" target=\"_blank\">November 20, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h4>2. Real World Asset (RWA) Tokenization<\/h4>\n<p>The ability to create fungible and non-fungible tokens on Ethereum has allowed developers to represent real world assets such as government <a href=\"https:\/\/www.techopedia.com\/definition\/bond\">bonds<\/a>, corporate bonds, real estate and art in the form of tokens on the Ethereum blockchain.<\/p>\n<p><a href=\"https:\/\/www.techopedia.com\/definition\/real-world-asset-rwa-tokenization\">Tokenization of RWA<\/a> allows investors from across the world to invest in assets that would otherwise be unavailable to them.<\/p>\n<p>As of November 2024, Ethereum was the biggest RWA tokenization blockchain in the world, with tokenized assets (excluding <a href=\"https:\/\/www.techopedia.com\/definition\/stablecoin\">stablecoins<\/a>) worth over $3 billion, <a href=\"https:\/\/app.rwa.xyz\" target=\"_blank\">rwa.xyz<\/a> data showed.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Ethereum is securing more RWA\u2019s than all other networks combined, and growing. <a href=\"https:\/\/t.co\/nSRWtw9stM\" target=\"_blank\">pic.twitter.com\/nSRWtw9stM<\/a><\/p>\n<p>&mdash; tomuky.eth (@tomuky) <a href=\"https:\/\/twitter.com\/tomuky\/status\/1858890175247528430?ref_src=twsrc%5Etfw\" target=\"_blank\">November 19, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h4>3. Stablecoins<\/h4>\n<p>Stablecoins are fiat-pegged cryptocurrencies on a blockchain. US dollar-pegged stablecoins like <a href=\"https:\/\/www.techopedia.com\/definition\/tether-usdt\">USDT<\/a> and <a href=\"https:\/\/www.techopedia.com\/definition\/usd-coin-usdc\">USDC<\/a> are the most popular stablecoins in the world.<\/p>\n<p>These tokens provide crypto investors with stability during volatile markets. Stablecoins have also proved to be useful assets for currency hedging and cross-border payments.<\/p>\n<p>As of November 2024, 53.3% of the global stablecoin market cap was on Ethereum, data on <a href=\"https:\/\/defillama.com\/stablecoins\/chains\" target=\"_blank\">DefiLlama<\/a> showed.<\/p>\n<h4>4. Investment<\/h4>\n<p>Like Bitcoin, Ethereum is a popular investment asset among investors.<\/p>\n<p>Following the approval of <a href=\"https:\/\/www.techopedia.com\/now-we-have-spot-btc-etfs-whats-next\">spot Bitcoin ETFs<\/a> in January 2024, Ethereum&#8217;s ETH token also received the coveted <a href=\"https:\/\/www.techopedia.com\/sec-approval-of-spot-ethereum-etfs-why-it-matters\">spot ETH ETF<\/a> in July 2024, opening up the gates for retail and institutional investors to invest in the crypto without worrying about self-custody and other technical requirements.<\/p>\n<h4>5. Staking<\/h4>\n<p>A key advantage of Ethereum over Bitcoin is the feature of <a href=\"https:\/\/www.techopedia.com\/definition\/staking-blockchain-staking\">staking<\/a>.<\/p>\n<p>Staking is the process of locking up ETH tokens in a smart contract to be eligible to validate transactions on Ethereum. In return, validators earn network rewards for their contributions.<\/p>\n<p>Therefore, staking has made ETH a yield-bearing asset.<\/p>\n<h2><span id=\"bitcoin_vs_ethereum_overview_which_is_right_for_you\">Bitcoin vs. Ethereum Overview: Which Is Right for You?<\/span><\/h2>\n<p>Is Bitcoin or Ethereum better? The answer to this question is subjective and depends on your investment outlook, risk appetite, and understanding of the technology.<\/p>\n<p>In the section below, we have compiled a list of Bitcoin and Ethereum-specific risks that potential investors need to be aware of.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">3. ETH provides a new uncorrelated yield for the financial economy<\/p>\n<p>ETH staking yield: 3.23%<br \/>\nETH inflation since Merge: -0.03%<br \/>\nReal yield: 3.25%+<\/p>\n<p>BTC yield: 0%<\/p>\n<p>A Strategic Reserve should hold the premier proof of stake asset, ETH, alongside BTC as a new source of yield<\/p>\n<p>(4\/7) <a href=\"https:\/\/t.co\/Qi6MxhkHZC\" target=\"_blank\">pic.twitter.com\/Qi6MxhkHZC<\/a><\/p>\n<p>\u2014 VivekVentures.eth \ud83e\udd87\ud83d\udd0a (@VivekVentures) <a href=\"https:\/\/twitter.com\/VivekVentures\/status\/1860739901383446728?ref_src=twsrc%5Etfw\" target=\"_blank\">November 24, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3>Bitcoin Investment Risks<\/h3>\n<div class=\"su-accordion su-u-trim\">\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Energy consumption<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> The <a href=\"https:\/\/www.techopedia.com\/bitcoin-mining-and-energy-statistics\">Bitcoin mining industry&#8217;s high energy consumption<\/a> is a key risk for investors. Over the years, Bitcoin has faced scrutiny from regulators and lawmakers due to its exorbitant annual energy consumption which was estimated to be more than countries such as Malaysia, Egypt and Poland by the <a href=\"https:\/\/ccaf.io\/cbnsi\/cbeci\" target=\"_blank\">Cambridge Centre for Alternative Finance<\/a>. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Regulations<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Regulations around cryptocurrencies are still being formed which has caused nervousness among investors due to the looming uncertainty. Several countries, including China, Nepal, Bangladesh, and Egypt have banned the use of Bitcoin. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>From payments to digital gold<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Bitcoin&#8217;s critics have disapproved how the narrative around Bitcoin changed from a decentralized payment network to its status as digital gold. Critics say that Bitcoin&#8217;s 10-minute <a href=\"https:\/\/www.techopedia.com\/definition\/17978\/block-programming\">block<\/a> times and fluctuating gas fees make it unsuitable to become a global payment network to rival the likes of Visa and Mastercard. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Satoshi Nakamoto's holdings<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> According to blockchain researcher <a href=\"https:\/\/bitcointalk.org\/index.php?topic=175996.0\" target=\"_blank\">Sergio Demian Lerner&#8217;s analysis<\/a>, Bitcoin&#8217;s pseudonymous founder Satoshi Nakamoto is said to have mined over 1.814 million BTC tokens between 2009 and 2010 of which 1.1488 million ($109.454 billion as of November 28, 2024) was estimated to be unused. Bitcoin prices would face intense downward pressure if these holdings are ever sold in the open market. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Quantum computing<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> <a href=\"https:\/\/www.techopedia.com\/definition\/quantum-computing\">Quantum computing<\/a> poses a serious threat to cryptocurrencies. Technological advancements in quantum computing could potentially break Bitcoin&#8217;s proof-of-work cryptographic security system in the future. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Forking risks<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Bitcoin&#8217;s developer community has seen disputes related to network upgrades in the past. The &#8220;Blocksize Wars&#8221; saw two factions split over the decision of increasing the block size of Bitcoin to handle more transactions. The dispute resulted in the <a href=\"https:\/\/www.techopedia.com\/definition\/32912\/hard-fork\">fork<\/a> of the original chain into Bitcoin and <a href=\"https:\/\/www.techopedia.com\/definition\/33596\/bitcoin-cash-bch\">Bitcoin Cash<\/a> (BCH) in 2017. <\/div><\/div>\n<\/div>\n<h3>Ethereum Investment Risks<\/h3>\n<div class=\"su-accordion su-u-trim\">\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Competition<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> While Bitcoin is a unique cryptocurrency that does not have a counterpart, Ethereum has numerous competitors that provide similar smart contract features to developers. New <a href=\"https:\/\/www.techopedia.com\/definition\/layer-1-in-blockchain\">layer one<\/a> (L1) blockchains like Solana (SOL), <a href=\"https:\/\/www.techopedia.com\/definition\/sui\">Sui<\/a> (SUI), and Aptos (APT) have exploited a gap in the L1 market to provide performance-focused blockchains that are eating away Ethereum&#8217;s market share. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Smart contract risks<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Smart contracts on Ethereum can be hacked, resulting in loss of user funds. In 2016, Ethereum had to fork its chain after an attacker exploited a bug in the smart contract of a <a href=\"https:\/\/www.techopedia.com\/definition\/32500\/decentralized-autonomous-organization-dao\">decentralized autonomous organization<\/a> (DAO) to steal 3.6 million ETH tokens ($12.92 billion as of November 28, 2024). <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Gas fees and network congestion<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Ethereum is known for its notoriously high and volatile gas fees. The high transaction fees has made the Ethereum blockchain impractical for a number of use cases like blockchain gaming. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Rollup-centric scaling roadmap<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Ethereum plans to find scale while preserving its decentralization and security with the help of <a href=\"https:\/\/www.techopedia.com\/definition\/layer-two-l2\">layer two<\/a> (L2) rollups. However, the success of this plan is uncertain. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Liquidity fragmentation<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Ethereum&#8217;s plan to scale with the help of L2s has resulted in crypto liquidity being fragmented across numerous L2 chains that are not interoperable. This has led to poor user experience and capital inefficiencies. <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Capital drain to L2s<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> The growing importance of L2 rollups has also seen DeFi activity and capital move away from Ethereum L1 to L2s like <a href=\"https:\/\/www.techopedia.com\/definition\/arbitrum-arb\">Arbitrum<\/a> (ARB), <a href=\"https:\/\/www.techopedia.com\/what-is-base-coinbase-l2-chain\">Base<\/a>, and <a href=\"https:\/\/www.techopedia.com\/definition\/optimism-op\">Optimism<\/a> (OP). <\/div><\/div>\n<div class=\"su-spoiler su-spoiler-style-fancy su-spoiler-icon-plus su-spoiler-closed\" data-scroll-offset=\"0\" data-anchor-in-url=\"no\"><div class=\"su-spoiler-title\" tabindex=\"0\" role=\"button\"><span class=\"su-spoiler-icon\"><\/span><strong>Regulatory risk<\/strong><\/div><div class=\"su-spoiler-content su-u-clearfix su-u-trim\"> Ethereum faces a higher degree of regulatory scrutiny vs. Bitcoin as the cryptocurrency still faces questions over its status as a digital asset commodity. <\/div><\/div>\n<\/div>\n<h2><span id=\"pros_cons_of_ethereum_vs_bitcoin_investment\">Pros &amp; Cons of Ethereum vs. Bitcoin Investment<\/span><\/h2>\n<p>Let&#8217;s summarize the pros and cons of Bitcoin and Ethereum:<\/p>\n<h3>Bitcoin<\/h3>\n<div class=\"su-row\"><div class=\"su-column su-column-size-1-2\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<strong>Pros<\/strong><br \/>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Unique asset of the crypto market<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Digital asset commodity<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Limited supply resulting in inflation-resistant properties<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> High degree of decentralization and security<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Permissionless blockchain<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Transparent ledger<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Ongoing trend of government and corporate accumulation of Bitcoin<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<div class=\"su-column su-column-size-1-2 pros_icons_\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<strong>Cons<\/strong><br \/>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Highly energy-intensive mining process<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Slow technological upgrades<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Uncertainties related to Satoshi Nakamoto&#8217;s holdings<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Limited scalability<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Speculative value<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Volatile price<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Users need technical know-how<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Crypto industry regulatory risks<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div>\n<h3>Ethereum<\/h3>\n<div class=\"su-row\"><div class=\"su-column su-column-size-1-2\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<strong>Pros<\/strong><br \/>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Home of dApps and DeFi<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Smart contract programmability<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Yield-bearing asset<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Staking is not energy-intensive<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Decentralization and security<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Permissionless blockchain<\/li>\n<li><i class=\"sui sui-check-circle\" style=\"color:#3CB371\"><\/i> Transparent ledger<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<div class=\"su-column su-column-size-1-2 pros_icons_\"><div class=\"su-column-inner su-u-clearfix su-u-trim\">\n<strong>Cons<\/strong><br \/>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Highly competitive L1 sector<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Smart contract risks<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Volatile gas fees<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Limited scalability<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Uncertainties related to rollup-centric roadmap<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Liquidity fragmentation due to L2s<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Speculative value<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Volatile price<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Users need technical know-how<\/li>\n<li><i class=\"sui sui-remove\" style=\"color:#e31f28\"><\/i> Crypto industry regulatory risks<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div>\n<h2><span id=\"eth_vs_btc_market_outlook_for_2025_beyond\">ETH vs BTC: Market Outlook for 2025 &amp; Beyond<\/span><\/h2>\n<h3>Strategic Bitcoin Reserve Bill Will Send Bitcoin Prices Higher<\/h3>\n<p>If we compare the market performance of Bitcoin and Ethereum in 2024, we see a clear investor preference for the former due to its growing acceptance among institutional investors, corporations and governments.<\/p>\n<p>The falling ETH\/BTC ratio (-30% year-to-date as of November 28, 2024), increasing Bitcoin dominance (+13% year-to-date) and surging spot Bitcoin ETF asset under management are a testament to Bitcoin&#8217;s ever-increasing popularity.<\/p>\n<p>Now, investors are keeping a keen eye on whether a bill to create a <a href=\"https:\/\/www.lummis.senate.gov\/press-releases\/lummis-introduces-strategic-bitcoin-reserve-legislation\/\" target=\"_blank\">strategic Bitcoin reserve<\/a> in the US sees the day of light in 2025.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">ICYMI: I just announced I will introduce legislation to establish a strategic Bitcoin reserve! <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin2024?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\">#Bitcoin2024<\/a> <a href=\"https:\/\/t.co\/P36AcdmPFF\" target=\"_blank\">pic.twitter.com\/P36AcdmPFF<\/a><\/p>\n<p>&mdash; Senator Cynthia Lummis (@SenLummis) <a href=\"https:\/\/twitter.com\/SenLummis\/status\/1817320519185932726?ref_src=twsrc%5Etfw\" target=\"_blank\">July 27, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3>ETH Is the Contrarian Bet, Expert Says<\/h3>\n<p>As for ETH (+56% year-to-date), the token underperformed <a href=\"https:\/\/www.techopedia.com\/bitcoin-price-history\">Bitcoin (+125% year-to-date)<\/a> and its L1 rivals, such as SOL (+131% year-to-date) and BNB Chain (+107%), due to uncertainties related to its rollup-centric scaling plans.<\/p>\n<p>However, Ethereum continues to dominate the world of decentralized finance accounting for over 57% ($69.19 billion of $119.62 billion) of total value locked (TVL) across all smart contract blockchains, <a href=\"https:\/\/defillama.com\" target=\"_blank\">DefiLlama<\/a> data showed.<\/p>\n<p>Ethereum also remains the king when it comes to RWA tokenization. Traditional finance institutions have shown a preference for the reputed Ethereum blockchain&#8217;s high degree of decentralization and security when it comes to tokenizing assets.<\/p>\n<p>According to <a href=\"https:\/\/app.rwa.xyz\" target=\"_blank\">rwa.xyz<\/a>, Ethereum held a 76.4% market share in RWA tokenization with a total value of $3.07 billion tokenized assets (excluding stablecoins). Its closest rival Stellar tokenized assets worth $245.5 million (excluding stablecoins).<\/p>\n<p>In September 2024, <strong>Matt Hougan, chief investment officer of Bitwise<\/strong>, <a href=\"https:\/\/experts.bitwiseinvestments.com\/cio-memos\/a-contrarian-bet-on-ethereum\" target=\"_blank\">called<\/a> Ethereum a &#8220;potential contrarian bet&#8221; and said, &#8220;from my seat, none of Ethereum&#8217;s challenges seem existential.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Ethereum is the best contrarian bet in crypto right now. <a href=\"https:\/\/t.co\/PLJD3bkhyt\" target=\"_blank\">https:\/\/t.co\/PLJD3bkhyt<\/a><\/p>\n<p>&mdash; Matt Hougan (@Matt_Hougan) <a href=\"https:\/\/twitter.com\/Matt_Hougan\/status\/1846631047859261634?ref_src=twsrc%5Etfw\" target=\"_blank\">October 16, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span id=\"the_bottom_line_should_i_buy_bitcoin_or_ethereum\">The Bottom Line: Should I Buy Bitcoin or Ethereum?<\/span><\/h2>\n<p>If you are thinking of investing in BTC or ETH, we would like to remind you that cryptocurrencies are highly risky and volatile assets. Always do your research before investing.<\/p>\n<p>Bitcoin versus Ethereum analysis clearly shows that both cryptocurrencies hold their top positions due to numerous real world use cases and potential investment opportunities.<\/p>\n<p>This article should not be taken as financial advice. It was written for informational purposes only.<\/p>\n<h2><span id=\"faqs\">FAQs<\/span><\/h2>\n<div class=\"man_faq_sec\" itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What are the differences between Bitcoin and Ethereum?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Bitcoin is a peer-to-peer electronic cash payment network that allows anyone to make online payments without going through a financial institution. Ethereum is designed to be a decentralized global platform for applications where anyone can build and use decentralized applications (DApps).<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Will Ethereum outperform Bitcoin?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">In 2024, Ethereum has not outperformed Bitcoin. As of November 2024, ETH was up 55% in year-to-date terms while BTC was up over 125% in the same period.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Is it better to buy Ethereum or Bitcoin?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">The decision to buy ETH or BTC will depend on your investment outlook, risk appetite, and understanding of the technology. Cryptocurrencies are highly risky and volatile assets. Always do your research before investing.<\/p>\r\n                <\/div><\/div><\/section>\n<div class=\"reference-content\">\n<div class=\"reference-heading reference-content-collapsible-heading\">\n<h2><span id=\"references\">References<\/span><\/h2>\n<\/div>\n<div class=\"reference-content-body\">\n<ol>\n<li><a href=\"https:\/\/www.21shares.com\/en-eu\/research\/ethereum-primer-q4-2023\" target=\"_blank\">Primer: Ethereum, The Global App Store for the Next Generation of Internet Services<\/a> (21shares)<\/li>\n<li><a href=\"https:\/\/x.com\/ActusDei\/status\/1582574239655153664\" target=\"_blank\">Neil Borate on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/www.theblock.co\/data\/crypto-markets\/prices\/btc-pearson-correlation-30d\" target=\"_blank\">BTC Pearson Correlation (30D)<\/a> (The Block)<\/li>\n<li><a href=\"https:\/\/x.com\/aave\/status\/1859031081670095093\" target=\"_blank\">Aave on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/app.rwa.xyz\" target=\"_blank\">RWA.xyz | Analytics on Tokenized Real-World Assets<\/a> (App RWA)<\/li>\n<li><a href=\"https:\/\/x.com\/tomuky\/status\/1858890175247528430\" target=\"_blank\">tomuky.eth on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/defillama.com\/stablecoins\/chains\" target=\"_blank\">Stablecoins Circulating<\/a> (DefiLlama)<\/li>\n<li><a href=\"https:\/\/x.com\/VivekVentures\/status\/1860739901383446728\" target=\"_blank\">VivekVentures.eth \ud83e\udd87\ud83d\udd0a on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/ccaf.io\/cbnsi\/cbeci\" target=\"_blank\">Cambridge Blockchain Network Sustainability Index: CBECI<\/a> (CCAF)<\/li>\n<li><a href=\"https:\/\/bitcointalk.org\/index.php?topic=175996.0\" target=\"_blank\">Satoshi&#8217;s Fortune lower bound is 100M USD(DEBATE GOING ON, DO NOT TWEET!)<\/a> (BitcoinTalk)<\/li>\n<li><a href=\"https:\/\/www.lummis.senate.gov\/press-releases\/lummis-introduces-strategic-bitcoin-reserve-legislation\/\" target=\"_blank\">Lummis Introduces Strategic Bitcoin Reserve Legislation \u00bb Senator Cynthia Lummis<\/a> (Lummis Senate)<\/li>\n<li><a href=\"https:\/\/x.com\/SenLummis\/status\/1817320519185932726\" target=\"_blank\">Senator Cynthia Lummis on X<\/a> (X)<\/li>\n<li><a href=\"https:\/\/defillama.com\" target=\"_blank\">DefiLlama &#8211; DeFi Dashboard<\/a> (DefiLlama)<\/li>\n<li><a href=\"https:\/\/experts.bitwiseinvestments.com\/cio-memos\/a-contrarian-bet-on-ethereum\" target=\"_blank\">A Contrarian Bet on Ethereum<\/a>\u00a0(Experts Bitwise Investments)<\/li>\n<li><a href=\"https:\/\/x.com\/Matt_Hougan\/status\/1846631047859261634\" target=\"_blank\">Matt Hougan on X<\/a> (X)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) or Ethereum (ETH)? This is a key question in the minds of many crypto investors who want to allocate their capital in the best way possible. Understanding the technologies behind these cryptocurrencies and learning what makes them special is key to making sound investment decisions. In this article, we talk about the key [&hellip;]<\/p>\n","protected":false},"author":286557,"featured_media":366989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[601],"tags":[],"category_partsoff":[],"class_list":["post-366967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin vs. Ethereum Compared: A Crypto Investor&#039;s Guide - Techopedia<\/title>\n<meta name=\"description\" content=\"Is Bitcoin or Ethereum better for you in 2024? 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