What is the difference between Bitcoin and Ethereum?

What Is the Difference Between Bitcoin and Ethereum?

Bitcoin was designed as peer-to-peer electronic cash and a store of value. It has a fixed supply (21 million), uses proof of work, and focuses on security and simplicity. Ethereum was designed as a programmable blockchain. It runs smart contracts and hosts tokens, DeFi, and NFTs. It has moved to proof of stake and has no fixed supply cap.

Purpose

Bitcoin is mainly used as a store of value and for payments. Ethereum is used for that too, but its main use is as a platform for applications: DeFi, NFTs, DAOs, and thousands of tokens. ETH is needed to pay for transactions and gas on Ethereum.

For Investors

Both are major assets. Bitcoin is often seen as "digital gold." Ethereum is seen as the backbone of the smart contract ecosystem. Both are volatile. In India, gains from either are taxable. Choose based on your view of their use cases and risk, not on hype.