Introduction
Bitcoin (BTC) was the first digital currency to gain widespread adoption. An anonymous person or group, Satoshi Nakamoto, used ‘distributed ledger’ (blockchain) technology to create a digital currency for peer-to-peer (P2P) transactions. Bitcoin is a virtual store of value and a means of exchange without relying on centralised world governments or large financial institutions, creating the potential to revolutionise the global economy. Its most important features include a hard cap of 21 million BTC to limit inflation and a trustless consensus mechanism called Proof of Work (PoW). Bitcoin traders also buy and sell BTC for its high price upside potential. However, Bitcoin is criticised for slow transaction processing times and high energy consumption.
Bitcoin spawned the decentralised finance (DeFi) movement, but many saw potential in blockchain technology beyond what BTC was doing. Thus, Anatoly Yakovenko created Solana (SOL) as a blockchain network delivering scalability without compromising decentralisation or security. SOL transactions are processed much more quickly than Bitcoin’s, and the underlying programmable blockchain enables developers to create decentralised applications (dapps) like ‘GameFi’ and non-fungible token (NFT) marketplaces. Solana is carbon-neutral thanks to its innovative blend of the Proof of Stake (PoS) and Proof of History (PoH) consensus mechanisms. Still, its network can be unstable, and its infinite max supply produces inflationary tokenomics.
Neither lack ambition, but how do Bitcoin and Solana stack up against each other? Let’s compare two competing visions of what crypto can be.
Key Differences Between BTC and SOL
Bitcoin Overview
In a 2008 white paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, Satoshi Nakamoto first described Bitcoin as a digital currency for electronic transactions. On 3 January 2009, the Bitcoin network was launched when Nakamoto minted the first block of the Bitcoin blockchain, known as the ‘genesis block’; the first public trading market opened in July 2010.
Transactions were rare in Bitcoin’s early days, with Bitcoin Pizza Day on 22 May 2010 widely acknowledged as the first commercial use of Bitcoin. Nakamoto was initially involved in Bitcoin’s community but stepped back to facilitate decentralisation. Nakamoto transferred control of Bitcoin’s network alert key and code repository to Gavin Andresen on 23 April 2011. Andresen subsequently became the lead developer for the Bitcoin Foundation. Today, Bitcoin’s community governs promotion and upgrades with support from the Bitcoin Foundation.
Bitcoin facilitates financial transactions between people and businesses without relying on fiat currencies controlled by world governments or central banks. Advocates argue that trustworthy currencies are essential to compete in a global marketplace, and Bitcoin’s independent nature ensures an even playing field. In recent years, BTC has also become a financial product in exchange-traded funds (ETFs), and draws comparisons to gold as a trustworthy value store.
Bitcoin’s protocol has undergone numerous upgrades since its launch, including Segregated Witness (SegWit), a software upgrade activated in August 2017 that allows Layer-2 blockchains to be built on Bitcoin’s network to expand its functionality. The Lightning Network, expediting transaction processing by taking transactions off-chain, is the most prominent example. The November 2021 Taproot soft-fork upgrade improved functionality for smart contracts and Layer-2s.
Check out BTC’s current value and recent price trends.
Solana Overview
Solana is a single-chain protocol aiming to solve the ‘blockchain trilemma’, a term coined by Ethereum co-founder Vitalik Buterin describing how all blockchains can optimise two of decentralisation, scalability, and security at the expense of the third. Anatoly Yakovenko didn’t want to compromise on any of them, publishing a white paper in November 2017 detailing a timekeeping method for distributed systems called ‘proof of history’, where historical events proving an event happened at a specific moment automated the blockchain transaction sorting process, removing one of the biggest obstacles to scalability.
Yakovenko partnered with former Qualcomm colleagues like Greg Fitzgerald to publish the project’s first official paper and an internal proof-of-history blockchain, Testnet, in February 2018. Yakovenko, Fitzgerald, another former Qualcomm colleague, Stephen Akridge, and others later started the company that became Solana Labs. Solana is considered one of the fastest blockchains, theoretically capable of processing over 3,600 transactions per second (tps). Its ecosystem includes NFT marketplaces, video game titles, and a robust collection of altcoins.
However, one of Solana’s main weaknesses is an unstable network. One glitch can paralyse the entire system and prevent transactions from processing for hours. Fortunately, Solana’s community works hard to identify and patch these issues whenever they arise, making network outages the stimulus for a more reliable system. For instance, an outage lasting 4.5 hours on 31 May 2022 led to updates protecting the network from comparable bugs involving ‘durable nonce transactions‘.
Check out Solana’s current value and recent price trends.
Ecosystem Comparison: BTC and SOL
Bitcoin and Solana’s Consensus Mechanisms
Bitcoin’s network confirms transactions through a PoW consensus mechanism. Transactions included in a block are accompanied by a mathematical proof of work, or the solution to a complex math puzzle. The only way to solve the puzzle is through trial and error, so Bitcoin miners use powerful computers to compete to find the solution the fastest. The winner claims all of the transaction fees associated with the block, plus a set block reward. This system is secure and reliable, but relatively slow and energy-intensive. Estimates of BTC’s annual energy consumption range from 91–150 terawatt hours (TWh), meaning it uses more power than the entire electricity usage of Finland.
Block rewards are how new BTC are added to the ecosystem, and those rewards are reduced by 50% approximately every four years through an event called Bitcoin halving. Eventually, miners will release all of Bitcoin’s 21 million supply, leaving transaction fees as their primary compensation.
Solana’s network confirms transactions through a combination of the PoS and PoH consensus mechanisms. Under Proof of Stake, special nodes, called ‘validators’, are responsible for processing new transactions and adding new blocks to the blockchain. Validator operators stake SOL to increase their voting power and may open their nodes to additional stakes from other Solana holders, or ‘delegators’. Stakes are important because they give all validators a financial incentive to follow the protocol. When validators receive rewards for adding blocks to the blockchain, they’re proportionately split with any delegators.
The Proof of History consensus mechanism uses verifiable delay functions (VDFs) to allow nodes to generate timestamps locally through SHA-256 computations. Since timestamps aren’t broadcast throughout the network, transactions contain much less data and can be processed more quickly. PoH also reduces Solana’s energy consumption to 0.0067 watt-hours (Wh) per transaction, or less than running an LED light bulb for one hour (0.01 kWh).
Bitcoin and Solana’s Scalability
Bitcoin faces challenges when it comes to scalability. The network averages seven tps, which isn’t enough to process transactions worldwide without significant fees and longer wait times. PoW is amongst the biggest reasons for this, but it’s such an integral component of Bitcoin’s protocol that any change comparable to Ethereum’s ‘The Merge’ is unlikely.
Solana’s team designed it specifically for scalability, offering rapid transaction processing with little carbon footprint. SOL transaction fees are low at a median of US$0.00064, so Solana is a viable means of exchange for everyday purchases.
Tokenomics Comparison
Bitcoin Use Cases
BTC is the native cryptocurrency of Bitcoin’s network for transaction fees and miner compensation, and its hard cap of 21 million creates scarcity, making Bitcoin a secure value store comparable to gold. Bitcoin has the highest liquidity of any cryptocurrency, and holders can easily exchange it for fiat or other cryptocurrencies on trustworthy platforms like Crypto.com. BTC is increasingly gaining acceptance in the finance community through ETFs, futures, and other financial products.
Acceptance as a Payment Method
Bitcoin is the most recognisable name in cryptocurrency, and nearly any vendor who accepts crypto supports it. Some big-name merchants accepting BTC payments include Starbucks, Newegg Electronics, Whole Foods Market, and Overstock.com. Furthermore, smaller vendors may accept Bitcoin to differentiate themselves from competitors. Examples include Shiny Leaf (skin and hair care) and Bloom Audio. BTC holders may also purchase gift cards or make purchases through services like Crypto.com Pay.
Solana Use Cases
SOL is the Solana ecosystem’s native token used for staking, gas fees, and accessing dapps. SOL holders purchase meme coins, NFTs, and electronic goods every day. SOL is also a virtual store of value traders swap for other tokens or fiat currencies on platforms like Crypto.com, though it doesn’t have as much liquidity as BTC.
Acceptance as a Payment Method
Merchants accepting SOL payments include GELID Solutions (computer hardware and thermal solutions), Pita Barcelona (custom, handmade mechanical watches), and Trovelle (well-known fashion brands). Alternatively, SOL holders may buy gift cards for well-known stores without cryptocurrency payments or use a service like Crypto.com Pay.
Key Pricing Moments
Crypto can be an extremely volatile asset class, with BTC and SOL experiencing massive price swings based on current events, the global economy, influencers, and random market forces. Below is a quick timeline for each token:
Bitcoin — Key Price Events
| July 2010 | Bitcoin becomes available at an initial price of $0.0008–0.08. |
|---|---|
| 21 February 2014 | Bitcoin loses nearly 90% of its value after cryptocurrency exchange Mt. Gox files for bankruptcy. Hackers compromised over 700,000 BTC deposited by Mt. Gox users and the company couldn’t recover. |
| February 2018 | Bitcoin loses 10%–20% of its value after China announces a blanket crypto trading ban for Chinese banks. |
| 2020 | Bitcoin soars to a new all-time high (ATH) of $28,993 in response to ongoing concerns about the global economy during the COVID-19 pandemic, an increase of more than 400%. |
| March 2024 | Bitcoin reaches a new ATH of $73,900 after the launch of Bitcoin ETFs. |
| December 2024–January 2025 | BTC reaches two new ATHs. First, it surpasses $108,000 on 17 December 2024 before reaching $109,319.46 on 20 January 2025. Many attribute the price spike to Donald Trump’s victory in the 2024 United States Presidential Election due to hints at pro-crypto policies. |
| July 2010 | 21 February 2014 |
|---|---|
| Bitcoin becomes available at an initial price of $0.0008–0.08. | Bitcoin loses nearly 90% of its value after cryptocurrency exchange Mt. Gox files for bankruptcy. Hackers compromised over 700,000 BTC deposited by Mt. Gox users and the company couldn’t recover. |
| July 2010 | February 2018 |
| Bitcoin becomes available at an initial price of $0.0008–0.08. | Bitcoin loses 10%–20% of its value after China announces a blanket crypto trading ban for Chinese banks. |
| July 2010 | 2020 |
| Bitcoin becomes available at an initial price of $0.0008–0.08. | Bitcoin soars to a new all-time high (ATH) of $28,993 in response to ongoing concerns about the global economy during the COVID-19 pandemic, an increase of more than 400%. |
| July 2010 | March 2024 |
| Bitcoin becomes available at an initial price of $0.0008–0.08. | Bitcoin reaches a new ATH of $73,900 after the launch of Bitcoin ETFs. |
| July 2010 | December 2024–January 2025 |
| Bitcoin becomes available at an initial price of $0.0008–0.08. | BTC reaches two new ATHs. First, it surpasses $108,000 on 17 December 2024 before reaching $109,319.46 on 20 January 2025. Many attribute the price spike to Donald Trump’s victory in the 2024 United States Presidential Election due to hints at pro-crypto policies. |
Solana — Key Price Events
| March 2020 | Solana debuts through an initial coin offering (ICO) at $0.04. |
|---|---|
| 14 September 2021 | Solana’s price declines 5% after a network outage lasting approximately 17 hours. Critics argued the downtime proved Solana’s network became unrel |
| November 2022 | Solana loses 40% of its value after crypto exchange FTX files for bankruptcy. FTX’s collapse started a crypto bear market, but Solana was affected more than most due to FTX founder Sam Bankman-Fried’s advocacy for SOL. Liquidating Bankman-Fried’s SOL holdings also created a market glut. |
| 11 June 2023 | Solana loses nearly 30% of its value after the Securities and Exchange Commission (SEC) claims SOL qualifies as a security in the US. Solana denies the claim. |
| 23 November 2024 | Solana reaches a new ATH of $263.52 in the bull market following Donald Trump’s US election win. Some argue SOL will be the biggest gainer during the cycle. |
| March 2020 | 14 September 2021 |
|---|---|
| Solana debuts through an initial coin offering (ICO) at $0.04. | Solana’s price declines 5% after a network outage lasting approximately 17 hours. Critics argued the downtime proved Solana’s network became unrel |
| March 2020 | November 2022 |
| Solana debuts through an initial coin offering (ICO) at $0.04. | Solana loses 40% of its value after crypto exchange FTX files for bankruptcy. FTX’s collapse started a crypto bear market, but Solana was affected more than most due to FTX founder Sam Bankman-Fried’s advocacy for SOL. Liquidating Bankman-Fried’s SOL holdings also created a market glut. |
| March 2020 | 11 June 2023 |
| Solana debuts through an initial coin offering (ICO) at $0.04. | Solana loses nearly 30% of its value after the Securities and Exchange Commission (SEC) claims SOL qualifies as a security in the US. Solana denies the claim. |
| March 2020 | 23 November 2024 |
| Solana debuts through an initial coin offering (ICO) at $0.04. | Solana reaches a new ATH of $263.52 in the bull market following Donald Trump’s US election win. Some argue SOL will be the biggest gainer during the cycle. |
Performance and Market Metrics
Bitcoin is the largest cryptocurrency by a number of metrics. It has the highest market capitalisation, at just under $1.9 trillion as of this writing, with a price range above $100,000 per token. BTC is anti-inflationary thanks to its capped supply of 21 million, of which 19.8 million are already in circulation. This combination of popularity and scarcity makes Bitcoin the most valuable coin in crypto.
Solana has a market cap at about $75.3 billion as of this writing. It has no capped supply, with a little over 475 million SOL in circulation, so it doesn’t have Bitcoin’s scarcity. Solana also has inflationary tokenomics since new tokens are released consistently through staking rewards. However, Solana’s ecosystem of dapps creates enough demand and speculation for a price range of $120–$260.
Developments and Roadmaps: BTC and SOL
Bitcoin’s Roadmap
Bitcoin doesn’t have a set roadmap, instead relying on its community to approve and implement upgrades. Furthermore, most developers prefer not to modify Bitcoin’s protocol directly, instead working on auxiliary projects like Layer-2 blockchains. There isn’t an indication that Bitcoin will see significant modifications soon, but it also doesn’t need them as the industry’s leading cryptocurrency.
Bitcoin’s Community
Cryptocurrencies rely on community support for their value, and social media sentiment can provide insight into a token’s future trajectory. Bitcoin enjoys the largest social media following in the industry, with 7.5 million X followers and 7.7 million Reddit followers as of this writing, giving it a large and passionate community.
Solana’s Roadmap
The Solana Foundation manages Solana but relies on a decentralised community approval system for updates, and Solana’s roadmap is ambitious. The most significant item is Firedancer, a high-performance validator client designed to significantly increase Solana’s transaction processing capabilities, resilience, and efficiency through sharding. It’s expected to release on Solana’s mainnet in 2025. Solana Labs is also planning upgrades, including support for additional programming languages and a concurrent transaction processor named Runtime v2.
Solana’s Community
Solana has 3.2 million X followers and 395,000 Reddit followers as of this writing. That might look small compared to Bitcoin’s massive following, but Solana has one of the largest communities amongst all cryptocurrencies.
Conclusion
Comparing Bitcoin and Solana is difficult since they represent different visions of what crypto could be. Bitcoin is an unparalleled value store with extreme scarcity. Solana is more practical to the functions of crypto, with faster transactions and lower fees.
Crypto speculators may prefer Bitcoin’s price upside potential or Solana’s relative accessibility. Merchants might go for Bitcoin’s recognisable brand or Solana’s relative price stability. Developers choose Solana since its programmable blockchain and diverse dapp ecosystem provide opportunities.
Always research a cryptocurrency’s tokenomics, development team, price history, and roadmap before considering a purchase.
Due Diligence and Do Your Own Research
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Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
