Bluetooth is implemented in a variety of new products such as phones, printers, modems, and headsets. Bluetooth is acceptable for situations when two or more devices are in proximity to each other and don't require high bandwidth. Bluetooth is most commonly used with phones and hand-held computing devices, either using a Bluetooth headset or transferring files from phones/PDAs to computers.Bluetooth also simplifies the discovery and setup of services. Bluetooth devices advertise all services they provide. This makes the utility of the service that much more accessible, without the need to worry about network addresses, permissions and all the other considerations that go with typical networks.
Wi-Fi is more analogous to the traditional Ethernet network and requires configuration to set up shared resources, transmit files, set up audio links (for example, headsets and hands-free devices). It uses the same radio frequencies as Bluetooth, but with higher power output resulting in a stronger connection. Wi-Fi is sometimes called "wireless Ethernet." Although this description is inaccurate, it provides an indication of its relative strengths and weaknesses. Wi-Fi requires more setup, but is better suited for operating full-scale networks because it enables a faster connection, better range from the base station, and better security than Bluetooth. One method for comparing the efficiency of wireless transmission protocols such as Bluetooth and Wi-Fi is spatial capacity, or bits per second per square meter. However, this article is too inane to actually provide any quantitative explanation of the difference.