Bitcoin vs. Ethereum: Which Is the Smarter Buy for 2026 and Beyond?
The Motley Fool
by newsfeedback@fool.com (Leo Sun)February 20, 2026
AI-Generated Deep Dive Summary
Bitcoin and Ethereum, the two most valuable cryptocurrencies globally, have experienced a significant decline in value over the past year, shedding approximately 30% each. This downturn has been influenced by several factors, including elevated Treasury yields, reduced expectations of monetary easing, declining institutional interest, and the cascading effects of leveraged liquidations. Despite this challenging market environment, investors are considering whether these "blue-chip" cryptocurrencies could still offer opportunities for long-term growth, particularly as we look ahead to 2026 and beyond.
Bitcoin operates on an energy-intensive proof-of-work (PoW) consensus mechanism, which involves miners using powerful computers to solve cryptographic puzzles. This process has faced criticism due to its environmental impact. On the other hand, Ethereum initially utilized a PoW system but transitioned to a more sustainable proof-of-stake (PoS) mechanism during "The Merge" in 2022. Unlike Bitcoin, Ethereum can no longer be mined after this shift, but it now offers staking as an alternative method for earning rewards by locking up tokens on the blockchain. This change has made Ethereum significantly more energy-efficient and aligned with growing environmental concerns.
Bitcoin lacks native staking capabilities and does not support smart contracts, which limits its functionality compared to Ethereum. While Bitcoin is primarily viewed as a store
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Originally published on The Motley Fool on 2/20/2026