Bitcoin Vs Ethereum: A Complete Guide

In 2014, Vitalik Buterin launched Ethereum(Ether). It has a market cap of 122 billion dollars. The daily trading volume of Ether is about 40 billion dollars. It is considered the smartest programmable money in the world.

Satoshi Nakamoto is believed to be the creator of Bitcoin. Bitcoin has a whopping market cap of 889 billion dollars.

Key Similarities

Let’s talk about the similarities between Bitcoin and Ether.

1. Bitcoin and Ethereum are both cryptocurrencies. Both are investments that people like to speculate and gamble their money on.

2. Both cryptos are based on blockchain technology.

3. Bitcoin & Ethereum are decentralized mediums of exchange.

4. Both work on proof of work(but in 2022, Ethereum will move to proof of stake)

Key Differences

We have seen the similarities between them, but in a lot of ways, they are very very different.

1. Ethereum is the second most popular crypto after bitcoin. 

Bitcoin can store value and act as an alternative to traditional currencies. Ethereum is a platform where users can create smart contracts, Defi, and NFTs.

2. Bitcoin is compared to digital gold as it was the first cryptocurrency, it has a market cap of 1 trillion dollars, and a limited supply of 21 million coins. 

Ethereum is often called digital Silver because of its wide variety of applications, like Silver.

3. Bitcoin is based on the programming language Prescriptive and Ethereum on General Purpose(Turing Complete). 

4. A block creation takes place every 10 minutes in Bitcoin, while it takes only 15 seconds in Ethereum. 

5. The process of mining Bitcoin is processor-intensive, and mining Ether is memory-intensive.

Which One To Invest?

Before deciding on which coin to invest in, it is essential to understand the motivation behind both these cryptos.

Comparing Bitcoin and Ethereum is is like comparing gold with electricity. Ethereum is a decentralized network over which users can build applications. Cryptos like Uniswap, Chainlink, Axie Infinity, and many cryptos work on the Ethereum network.

With the growth of Defi and Ethereum now moving to Proof Of Stake, it can be a bullish period for Ethereum.


Investing in either of the coins depends on your risk profile. Bitcoin is considered more stable than the two and is more mainstream. Ether has huge growth potential due to the change from Proof of Work to Proof of Stake and growth in the Defi space. Depending on your risk appetite and the kind of returns you want, you can invest in either of the coins.

Related Articles