Bitcoin vs Stellar

Key differences

Bitcoin and Stellar were built for different jobs. Bitcoin, launched in 2009, is a decentralized currency designed as peer-to-peer electronic cash and, increasingly, a store of value often called "digital gold." Stellar, co-founded in 2014 by Jed McCaleb and Joyce Kim, is a payments network focused on fast, low-cost transfers across different currencies, connecting banks, payment systems, and individuals — with a stated mission of expanding financial access to underserved populations.

Their consensus and supply models diverge completely. Bitcoin uses Proof of Work with SHA-256 mining, and supply is hard-capped at 21 million coins with halvings roughly every four years; over 20 million BTC are already mined. Stellar does not use mining: it runs the Stellar Consensus Protocol, a federated agreement system, which keeps energy use and fees minimal. XLM has no ongoing mining issuance, with about 34.5 billion lumens circulating out of roughly 50 billion total.

Ecosystem roles differ as well. Bitcoin functions primarily as a monetary asset and settlement layer, with its scarcity central to its identity. Stellar acts as connective infrastructure: trusted entities called Anchors hold deposits and issue on-chain representations of fiat currencies, and the network is managed by the non-profit Stellar Development Foundation. It also hosts assets like USDC and real-world-asset projects.

Bitcoin emphasizes scarce, mined money; Stellar emphasizes cheap, fast movement of existing currencies.