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Bitcoin vs Ethereum: Key Differences Explained
Bitcoin vs Ethereum compared: purpose, supply, how each network works and what that means for investors.
Different goals
Bitcoin was designed as digital money and a store of value, with a fixed supply of 21 million coins. Ethereum is a programmable network where developers run smart contracts, which power decentralized finance, NFTs and many other applications.
How the networks work
Bitcoin uses proof of work, where miners spend energy to secure the chain. Ethereum moved to proof of stake in 2022, where validators lock up coins instead. Ethereum has no fixed maximum supply, but its issuance is much lower than before the change.
What drives the price
Bitcoin is often driven by adoption, supply events like the halving and its role as a store of value. Ether is also driven by demand for network use, because transactions and applications require it to pay fees.
Which is better?
Neither is risk free. They have different purposes and often move together, but not always. Learn how each works, only invest what you can afford to lose, and see our guide on risk management.
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Educational content only, not financial advice. Crypto assets carry a high risk of loss.
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