Bitcoin and Ethereum are the two most known cryptocurrencies in the world cryptocurrencies that are used for different operations. While both are decentralized mediums of exchange based on Blockchain technology, they are very different.

At the same time, you can easily exchange ETH/BTC with minimal costs. BTC wants to be an actual form of money and an officially recognized digital currency. On the other side, ETH is more of some kind of microprocessor. It is money that can be programmed and automate smart contracts between anonymous users or give a chance for applications to be created based on its platform.

What are the critical differences between BTC and ETH?

If you want to choose the best cryptocurrency, then you should pay attention to the following features of Bitcoin and Ethereum:

Offer limitation. While BTC has a fixed supply of 21 million coins, ETH currently has a supply of 107 million. Moreover, ETH does not have a maximum collection. BTC acts like a currency so that you can buy Bitcoin.
Acceptability. Bitcoin can be used in many more places than classic Ethereum. BTC is accepted by 36% of US small and medium enterprises and large companies such as Microsoft or Wikipedia. This difference does not make BTC more valuable or helpful than ETH since the two serve entirely different functions.
Global functionality. In addition to being accepted in many places, BTC has begun to serve as the national legal tender, a first seen in El Salvador. However, ETH offers another use, i.e., cryptocurrency exchange automation. Its smart contracts allow two parties to make deals, such as buying a house or renting a taxi. ETH cuts down on mediators, thereby limiting bureaucracy, waiting times, and fees and enhancing security.

ETH and BTC are based on different types of Blockchain technology to invest crypto. ETH uses its own Proof-of-Work (PoW) hashing algorithm, Ethash, designed to be ASIC-proof to avoid centralization. Bitcoin crypto uses a secure PoW algorithm.

Environmental friendliness of cryptocurrency mining

Currently, ETH/BTC relies on PoW mining, which means a high carbon footprint. BTC is a big problem for the environment. ETH, in contrast, has a much smaller carbon footprint. Moreover, his move from PoW to PoS represents a significant step towards adapting to ESG values. By requiring validators to collect their coins in exchange for rewards for positive validation behavior, the PoS system will eliminate the need for mining, cutting energy costs by nearly 100%. Many analysts believe this move towards sustainability will cause demand for ETH to surpass demand for BTC.