Bitcoin and Ethereum are both cryptocurrencies that share many similarities but they have very different purposes. So the basic difference is what purposes do they serve, right?
First thing first, Bitcoin’s aim is to be a store of wealth and digital gold instead, simply put. The goal that mainly serves is to become a globally adopted currency and replace conventional money. The purpose of Etherium is to be a platform upon which smart contracts and decentralized apps can run.
Did You Know This About Ethereum And Bitcoin?
Another important difference is the supply whereas the number of Bitcoin is capped at 21 million coin supply. Ethereum is not capped to any specific quantity of maximum coin supply.
Both Bitcoin and Ethereum are produced in a process called mining although it might be handy to note that there are plans to shift a theory and production to a proof of stake model.
Take for example a cleaver and a Swiss Army knife both are built using the same materials but they are used for very different purposes. A cleaver is incredibly sharp, powerful and has a clear dominance in the kitchen.
While Bitcoin on the other hand you have this nifty Swiss Army knife which has many different features: it’s handy and can be used in many different situations each with their own strengths and weaknesses.
Are They Really Different?
As these ambitious projects grow and mature the differences will become much more apparent and could affect their trajectories quite differently. There are several technical differences in the technologies that underpin the Bitcoin and Ethereum platforms but at this early stage of these projects they may seem very much alike.