Bitcoin vs. Ethereum: Which Is the Smarter Buy for 2026 and Beyond?

2026-02-20 11:30:00 ET

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) , the world's two most valuable cryptocurrencies, both shed about 30% of their value over the past 12 months. That downturn can be attributed to high Treasury yields, expectations of slower monetary easing, waning institutional interest, and leveraged liquidations triggering further waves of profit-taking. Should investors consider buying either of these "blue chip" cryptocurrencies in this gloomy market?

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Bitcoin is mined using the energy-intensive proof-of-work ( PoW ) consensus mechanism, which requires miners to run powerful computers to solve cryptographic puzzles. Ethereum was originally mined as a PoW token, but it transitioned to the more energy-efficient proof-of-stake ( PoS ) mechanism during "The Merge" in 2022. It could no longer be mined after that transition, but it could still be staked (locked up on the blockchain to earn interest-like rewards) and used to develop decentralized apps and other crypto assets via smart contracts. Bitcoin can't be natively staked on its own blockchain, and it doesn't support smart contracts.

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