Bitcoin vs Ethereum: Which Cryptocurrency Should You Buy?

Bitcoin and Ethereum are completely different. Here's what each one does and which one fits your investment goals.
Bitcoin: Digital Gold
Created: 2009 by Satoshi Nakamoto (anonymous)
Purpose: Decentralized money without banks
Supply: 21 million maximum (deflationary)
Bitcoin Characteristics:
✓ First cryptocurrency (most proven track record)
✓ Highest security (never been hacked)
✓ Slowest transactions (10 minutes per block)
✓ Highest adoption (institutions buying)
✓ "Store of value" narrative (like digital gold)
Bitcoin's Value Proposition:

Protection against inflation (limited supply)
Impossible to confiscate or freeze
Globally recognized and accepted
Network effect (biggest = safest)
Institutional adoption increasing

Bitcoin Best For:

Conservative crypto investors
Long-term wealth preservation
Protection against currency devaluation
"Set and forget" investing strategy

Ethereum: Digital App Platform
Created: 2015 by Vitalik Buterin
Purpose: Platform for decentralized applications
Supply: No maximum (but burns coins to control inflation)
Ethereum Characteristics:
✓ Powers NFTs, DeFi, and Web3 apps
✓ Smart contract functionality
✓ Faster transactions than Bitcoin
✓ More utility beyond just money
✓ Constant innovation and upgrades
Ethereum's Value Proposition:

Powers the entire crypto ecosystem
Staking rewards (4-5% annually)
Deflationary mechanics (burns coins)
More use cases = more demand
Higher growth potential

Ethereum Best For:

Growth-oriented investors
Tech innovation exposure
Earning passive income (staking)
Higher risk tolerance

Performance Comparison (2015-2025):
Bitcoin:

Started 2015: $200
Peak 2021: $69,000 (34,400% gain)
Current 2025: ~$45,000

Ethereum:

Started 2015: $1
Peak 2021: $4,800 (480,000% gain)
Current 2025: ~$2,500

The Volatility Difference:

Bitcoin: "Stable" for crypto (still volatile vs stocks)
Ethereum: Higher volatility, bigger swings
Risk/reward correlates (more risk = more potential)

My Personal Allocation (Not Financial Advice):

60% Bitcoin (stability and adoption)
40% Ethereum (growth and staking)
This balances safety with upside potential

Alternative Approaches:
Conservative: 80% BTC, 20% ETH
Aggressive: 40% BTC, 60% ETH
Beginner: 100% BTC (learn before expanding)
Can You Buy Both?
Absolutely! Most serious crypto investors own both. They serve different purposes and aren't really competitors.
The Bottom Line:

Bitcoin = Savings account (preserve wealth)
Ethereum = Growth stock (build wealth)
Both have place in diversified portfolio

Don't Let Tribalism Fool You:
Some people act like you must choose one. That's nonsense. Both can succeed. Both have different use cases.
Tomorrow: The truth about altcoins and why 95% of them fail.
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‪@GreywoodInvestments‬