The short answer
Bitcoin is designed as digital money with a fixed supply of 21 million coins. Ethereum is a platform for running programs, called smart contracts, and its currency, ether, pays for using it. Bitcoin is by far the larger of the two and is held mostly as a store of value, while Ethereum underpins much of the rest of crypto, from stablecoins to lending apps. Both swing wildly in price: in late September 2026, bitcoin was about a third below its record and ether nearly half below its own.
Side by side
| Bitcoin | Ethereum | |
|---|---|---|
| Launched | 2009 | 2015 |
| Created by | Satoshi Nakamoto, a pseudonym | Vitalik Buterin and co-founders |
| Main purpose | Digital money and store of value | Platform for smart contracts and applications |
| Supply | Capped at 21 million; about 20 million mined | No fixed cap; part of each transaction fee is destroyed |
| How the network is secured | Proof of work (mining) | Proof of stake (staking) since September 2022 |
| Energy use | High | Fell by an estimated 99.95% after the switch to proof of stake |
| Price, late September 2026 | About $84,400 | About $2,670 |
| Record high | $126,198 (October 6, 2025) | Nearly $5,000 (August 2025) |
| U.S. spot ETFs | Since January 2024 | Since July 2024 |
What bitcoin is for
Bitcoin was the first cryptocurrency, created as a way to send value online without a bank in the middle. Its rules are deliberately simple and hard to change. New coins are created as a reward to “miners,” who use computing power to secure the network, and that reward halves roughly every four years. The 20 millionth coin was mined in March 2026, and the last is expected around 2140.
Most people who buy bitcoin today hold it as a long-term store of value, the “digital gold” idea, rather than to spend it. Our bitcoin vs. gold guide looks at how well that comparison holds up.
What Ethereum is for
Ethereum lets developers run programs on a shared network. Those programs power stablecoins, lending and trading services, digital collectibles and many other tokens. Every action on the network costs a fee paid in ether, which gives ether its use.
Since September 15, 2022, when the “Merge” upgrade switched Ethereum from mining to staking, the network has been secured by holders who lock up ether as collateral and earn rewards for helping to validate transactions. Ethereum has no fixed supply cap, but part of every transaction fee is destroyed, which offsets some of the new ether issued to stakers.
The risks
Both are volatile, lightly protected and exposed to changes in regulation. Neither is covered by FDIC or SIPC protection when held on an exchange, and both are targets for hackers and scammers. See how to buy bitcoin safely.
Bitcoin’s mining uses a large amount of electricity, which draws criticism, and its long-term security depends on transaction fees as mining rewards shrink.
Ethereum’s flexibility brings more ways for things to go wrong: bugs in smart contracts, hacks of applications built on it, and competition from other platforms.
What about other cryptocurrencies?
There are thousands of other coins. The largest categories are:
- Stablecoins, tokens meant to hold a steady $1 value. The biggest dollar stablecoins say they’re backed by cash and short-term Treasuries. The GENIUS Act, signed in July 2025, sets the first federal rules for regulated U.S. payment stablecoins, including a requirement for one-to-one reserves. Its main requirements take effect in January 2027 at the latest, or sooner if regulators finish their rules first.
- Other platforms that compete with Ethereum for applications.
- Smaller tokens, many of which are highly speculative. A large share of small coins have lost most of their value or disappeared entirely.
Owning them
Both can be bought through spot ETFs in a brokerage account or IRA, or directly on a U.S. exchange that’s registered with FinCEN and licensed in your state. Those registrations aren’t an SEC approval. When the first spot ether ETFs launched in July 2024, they weren’t allowed to stake, so owning ether directly was the only way to earn staking rewards; check a fund’s current prospectus for its policy. How to buy bitcoin safely covers the steps, which are the same for ether.
Taxes
The IRS treats both as property. Selling, trading or spending either can create a capital gain or loss, and staking rewards are taxable income when you gain control of them. See how bitcoin is taxed.
Frequently asked questions
Which is the better investment, bitcoin or Ethereum?
No one knows. Bitcoin’s case rests on its fixed supply and its role as digital gold; Ethereum’s rests on the growth of applications built on it. Both have had huge gains and deep crashes, so size any holding accordingly.
Can I stake bitcoin?
Not on bitcoin’s own network, which uses mining. Ether can be staked, either directly or through a service.
Is ether’s supply limited?
There’s no fixed cap. New ether is issued to stakers, while part of each transaction fee is destroyed, so the total supply can rise or fall over time.
Are stablecoins safer than bitcoin?
Their price is designed to stay near $1, so they don’t swing like bitcoin. Their safety depends on the issuer’s reserves and the rules it follows. The GENIUS Act sets federal rules for regulated U.S. payment stablecoins, with its main requirements taking effect by January 2027 at the latest.
Sources
- Fortune, Current price of Bitcoin for Sept. 25, 2026
- Fortune, Current price of Ethereum for Sept. 24, 2026
- ethereum.org, The Merge
- Morningstar, Spot ether ETFs begin trading
- SEC, Statement on the approval of spot bitcoin exchange-traded products (January 10, 2024)
- Yahoo Finance, Bitcoin crosses 20 million BTC milestone (March 2026)
- Covington & Burling, The GENIUS Act becomes law (July 2025)
- IRS, Digital assets
- Public Law 119-27, the GENIUS Act (govinfo)