How does Ethereum's supply compare to Bitcoin's
Bitcoin and Ethereum differ significantly in their supply mechanisms:
- **Bitcoin** has a **capped supply** of 21 million coins, ensuring scarcity and acting as a store of value. Its issuance decreases over time through halving events, with the final Bitcoin expected to be mined around 2140[1][2][3].
- **Ethereum** does **not have a fixed supply cap**, allowing for an unlimited total supply. However, mechanisms like staking rewards and transaction fee burning (introduced in EIP-1559) help regulate its supply, occasionally making it deflationary[1][2][3].
This distinction emphasizes Bitcoin's focus on scarcity and Ethereum's flexibility for broader use cases like smart contracts and decentralized applications.
Citations:
[1] Bitcoin vs Ethereum: What's Different Between BTC and ETH? https://crypto.com/bitcoin/bitcoin-vs-ethereum-whats-the-difference-between-btc-and-eth/
[2] Bitcoin vs. Ethereum in 2024: Comparison & Outlook | VanEck https://www.vaneck.com/us/en/blogs/digital-assets/bitcoin-vs-ethereum/
[3] Understanding Bitcoin and Ethereum Supply - Fidelity Digital Assets https://www.fidelitydigitalassets.com/research-and-insights/understanding-bitcoin-and-ethereum-supply
[4] Ethereum vs. Bitcoin: A Comprehensive Comparison - itez https://itez.com/en/blog/education/ethereum-vs-bitcoin-comparison
[5] Ethereum – Is It Worth Looking Beyond Bitcoin? - Leo Wealth https://leowealth.com/insights/ethereum-is-it-worth-looking-beyond-bitcoin/
[6] Bitcoin vs. Ethereum: Which Is the Better Buy? | Investing | U.S. News https://money.usnews.com/investing/cryptocurrency/articles/bitcoin-vs-ethereum-which-is-a-better-buy
[7] Bitcoin vs. Ethereum: What's the Difference? - Investopedia https://www.investopedia.com/articles/investing/031416/bitcoin-vs-ethereum-driven-different-purposes.asp
[8] What are the differences between Bitcoin and Ethereum? - Coinbase https://www.coinbase.com/learn/crypto-basics/what-are-the-differences-between-bitcoin-and-ethereum