What is the difference between an ERC-20 token and a Bitcoin?

3 answers

• Nov 26, 2021 · 3 years ago
  An ERC-20 token is a type of cryptocurrency that is built on the Ethereum blockchain. It follows a specific set of rules and standards, allowing it to be easily created and exchanged. On the other hand, Bitcoin is the first and most well-known cryptocurrency, created by an anonymous person or group known as Satoshi Nakamoto. While both are digital currencies, Bitcoin operates on its own blockchain and has a limited supply of 21 million coins. ERC-20 tokens, on the other hand, can have an unlimited supply and are often used to represent assets or utility within a specific project or platform.
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• Nov 26, 2021 · 3 years ago
  When it comes to functionality, Bitcoin is primarily used as a store of value and a medium of exchange. It is often seen as a digital form of gold, with a focus on decentralization and security. ERC-20 tokens, on the other hand, can have a wide range of use cases. They can represent anything from digital assets like real estate or art, to utility tokens that grant access to certain features or services within a decentralized application (DApp).
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• Nov 26, 2021 · 3 years ago
  From BYDFi's perspective, ERC-20 tokens and Bitcoin are both important components of the cryptocurrency ecosystem. While Bitcoin is the pioneer and has a strong following as a decentralized digital currency, ERC-20 tokens have gained popularity due to their versatility and ability to represent various assets and functionalities. Both have their unique advantages and use cases, and it's important for investors and users to understand the differences to make informed decisions.
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