Published Jan, 30 2025

Bitcoin vs. Smart Contract Platforms: Understanding the Difference

Learn all about Bitcoin vs. smart contracts in this informative article.
A coin with a Bitcoin logo surrounded by a geometric pattern.

Bitcoin vs. smart contract platforms, which one is better for you?

Understanding the difference is part of every beginner's crypto journey. Even if you’re not getting started, you may still have some questions. 

Don’t stress; we’re here to help. Here is what you need to know.

What Are Smart Contracts?

Okay, you probably already know the basics of Bitcoin. Essentially, it’s digital gold. But smart contracts? It’s a bit more complicated.

That’s where we come in. We’re here to demystify the blockchain complexity.

At their core, smart contracts are automated “if-then” statements on a blockchain. No one needs to run them; they execute themselves when certain conditions are met. Think of them like digital vending machines. All they need is an input, your selection, and dollar bills, and they self-execute, giving you your snack.

But since they’re on the blockchain, they’re immutable, meaning they can’t be changed.

Moreover, they exist on a public ledger. Anyone can view them. Here’s a better breakdown of how they work:

As you can imagine, this is a pretty open-ended technology. There is so much you can do with smart contracts. Across all the chains that support this tech, around 1 trillion smart contracts* (data from dune.com) have been deployed. Those are big numbers, especially for a technology just over a decade old. 

So, how do these smart contract platforms stack up against Bitcoin? Let’s explore.

Bitcoin vs. Smart Contracts: Crypto Platform Comparison

As we touched on earlier, Bitcoin is digital gold. It focuses on doing one thing and doing it well: sending Bitcoin. Sure, these days a lot of people see it as a store of value, but even so, the original purpose was to serve as an alternative to traditional banking infrastructure.

It also does this while staying highly secure

This is because of the way Bitcoin confirms transactions on the blockchain. Basically, miners offer up computational power to mine blocks. Since there are so many miners participating, the network is fully decentralized. No one person can control Bitcoin.

Moreover, Bitcoin has a huge track record of security success. This makes it better suited as a store of value blockchain.

Smart contract platforms, on the other hand, add a layer of complexity to the mix. 

They’re more than just an alternative form of money; they’re programmable money. Instead of simple transactions, they use complex, multi-step processes. Here are some unique capabilities:

The Bitcoin vs. smart contracts debate is a bit like comparing apples and oranges. Sure, they’re both blockchain technologies, but they do very different things.

Leading Smart Contract Platforms

Bitcoin is the big player in the blockchain space. There really is no competition. The closest blockchain titan to Bitcoin’s dominance is Ethereum, which is a smart contract platform — the first, actually.

But that was way back in 2015* (as mentioned on theblock.co). Since then, plenty of smart contracts-enabled blockchains have deployed:

The list goes on. Each one of these blockchains has thriving application ecosystems and, of course, their own unique qualities. For example, Solana is built for speed and low costs. Avalanche is known as the home base for many different blockchain games. 

If smart contracts interest you, go exploring! There’s a lot to discover.

Smart Contract Use Cases

So, what can you do with a smart contract, anyway?

As we touched on earlier, the sky really is the limit. Think of these types of blockchains as programmable computers in the sky. What you can do with a regular computer program, you can now do with a decentralized and self-executing infrastructure.

With this level of open-mindedness, developers have come up with all kinds of use cases. Here are a few of the most popular:

Those are just a few of the most popular applications for smart contracts. Again, you’ll want to put on your adventurer’s hat and explore the crypto-verse yourself to discover how people have adapted this technology. 

Closing the Gap: Bitcoin's Evolution

No article on Bitcoin vs. smart contracts would be complete without a pretty big caveat. 

Bitcoin, while not a smart contract platform, is starting to gain some smart contract capabilities. You see, after a major tech upgrade, the Taproot upgrade, Bitcoin got a bit faster and a bit more efficient. 

Some savvy developers found out you could include smart contract-like tech inside a Bitcoin block. Some of these technologies are Ordinals (similar to NFTs) and Runes (which allow users to create tokens on-chain).

There are also Bitcoin Layer 2s. Essentially, these build out new ecosystems on top of the Bitcoin blockchain. 

With these innovations, Bitcoin holders now have access to smart contract capabilities without needing to explore other chain ecosystems. It’s a great time to be a Bitcoin holder, with loads of more innovations just around the corner.

Bitcoin vs. Smart Contracts: Is There a Winner?

When it comes to Bitcoin vs. smart contract platforms, there is a lot to know. Hopefully, you are now a little bit more familiar with each one, their unique benefits, and what they mean for your own crypto journey.

If you’re looking to get started purchasing cryptocurrencies, like Ethereum and Bitcoin, we’ve got you covered.

Here at Bitcoin Depot, we offer several services to help you get crypto in your wallet.

The first is our buy online service. Here, you can buy crypto with a debit card, credit card, Apple Pay, or Google Pay. 

If buying with cash is more your style, you’re in luck. We also operate the largest Bitcoin ATM network in the U.S., Canada, Puerto Rico, and Australia, with over 8,400+ locations (as of January 2025).

Find your nearest 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.