Published Jan, 16 2025

Bitcoin vs. Ethereum: What Newcomers to Crypto Need to Understand

Bitcoin vs. Ethereum? What are the details of this crypto rivalry? We've got all the info in this article.
A 3D digital illustration showing hexagonal Bitcoin and Ethereum cryptocurrency symbols in gold and silver colors, connected by glowing orange network lines against a dark circuit board background.

Bitcoin vs. Ethereum: there’s no better rivalry in the crypto world. 

But, as a newcomer to cryptocurrency, what do you need to know about each blockchain? There are unique advantages and use cases for each one. 

Don’t worry, though; we're here to help you traverse the crypto-verse with all the necessary knowledge. Let’s explore Bitcoin and Ethereum and compare them so you can make a more informed decision on which digital currency is right for you.

Where These Crypto Titans Started

If you want to know the story of Bitcoin vs. Ethereum, you need to start at the beginning. 

Bitcoin was created by anonymous founder Satoshi Nakamoto in 2009. It's considered the world’s first decentralized digital currency. While the tech behind Bitcoin can feel complex, the mission is pretty simple. Bitcoin aims to provide a secure, censorship-resistant form of payment.

Born in the aftermath of 2008’s financial crisis, Bitcoin is an equitable alternative to the global banking system. To put it in perspective, 74% of Bitcoin owners* (as mentioned on grayscale.com) hold less than 0.01 BTC. It’s the coin of the people.

Bitcoin set the stage for the crypto revolution. But it wasn’t until Ethereum hit the scene that we had a true blockchain contender. Here is what you need to know:

That’s the short and sweet version of the Bitcoin vs. Ethereum story. Of course, we’re only scratching the surface. Even so, this should give you a good foundation if you’re just getting started.

To further demystify these two crypto titans, let’s examine the technology behind each one more closely. 

Bitcoin vs. Ethereum: What’s Behind the Technology?

When it comes to Bitcoin vs. Ethereum, there’s quite a stark difference between the two in terms of technology. Sure, they’re both cryptocurrencies that leverage blockchain technology, but that’s where the similarities start to end. 

Let’s first take a look at Bitcoin:

So, how does this tech stack up against Ethereum? Let’s explore:

Okay, so that’s what makes these two blockchain giants different on a technical level, but what does that mean for use cases and utility?

Use Cases and Utility

The Bitcoin vs. Ethereum debate isn't complete without a review of use cases and utility. When it comes to utility, Bitcoin has a pretty simple purpose: to act as a digital currency.

It’s used for peer-to-peer transactions, enabling fast, secure, and borderless payments without the need for intermediaries. Since 2009, Bitcoin has become the world’s most popular cryptocurrency, growing in adoption and accepted by thousands of retailers and service providers worldwide. 

Behind each transaction is a secure, immutable, and decentralized network. That means each transaction can’t be altered, and no single entity can control the blockchain. It really is the financial network of the people.

With a limited supply of 21 million coins, many see Bitcoin as a hedge against things like inflation. 

While many central banks and Wall Street elite initially turned their noses up toward Bitcoin, these days, they’re changing their tune. With successful ETF (exchange-traded funds, making Bitcoin available in traditional stock portfolios) launches and attention from everyone from nation-states to huge multinational corporations, it’s safe to say Bitcoin is here to stay.

Essentially, Bitcoin is digital gold. What about Ethereum? Well, it’s a different story altogether. 

What drives Ethereum’s popularity is those dApps and smart contracts we mentioned earlier. Developers can build all kinds of things using Ethereum’s blockchain. Whether it’s DeFi apps for flash loans or gaming ecosystems that pay players with in-game cryptocurrencies, it’s all happening on Ethereum. 

There are also several other key tech factors driving Ethereum’s growth:

If you can think of it, there’s a chance a project is already in motion on the Ethereum blockchain.

Which Blockchain is Right for You?

If you’re new to the crypto space, these two top contenders are probably on your radar. But which one is right for your needs?

If you’re primarily interested in using cryptocurrency as a way to transact or as a store of value, Bitcoin may be a better choice. It’s widely accepted and has a proven track record as a digital currency. 

On the other hand, you may be interested in using things like decentralized exchanges (Dexes) or dApps like DeFi. In that case, Ethereum is your best bet. While technological changes have opened up some of these opportunities on the Bitcoin network, there is no denying that Ethereum is the king of the dApp ecosystem.

In fact, Ethereum represents around 55%* (data from defillama.com) of the total dApp activity for crypto. 

Whether you choose one, the other, or both, be sure to think about your individual goals and risk tolerance. Always do your own research to understand which blockchain is right for you, and never rely on a single source of information to make a decision.

Bitcoin vs. Ethereum: You Don’t Have to Choose!

That’s a quick primer on Bitcoin vs. Ethereum.

Of course, there’s a lot more to the story than this little article can cover. You should explore your options and dive a little deeper into the crypto-verse, letting your curiosity take you to new digital worlds.

For most crypto enthusiasts, it’s not a matter of which one is better. Both have their own unique qualities and potential downsides. Many people own both, to some degree.

Lucky for you, Bitcoin Depot offers both through our online buying service

There, you can purchase Bitcoin or Ethereum using a debit or credit card. 

Moreover, if cash transactions are more your style, you can head to one of our Bitcoin ATMs to make a purchase. As the largest Bitcoin ATM operator in the world, with over 8,400 locations (as of January 2025), you’re never too far away from a seamless cash purchase of Bitcoin.

Find your local Bitcoin ATM to get started.

*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.