Bluetooth sends a digital signal using radio waves – a series of 1s and 0s – which your Bluetooth speaker must pick up and then convert into an analog signal. This leads to a small loss of quality – you can only send signals over Bluetooth so quickly, so the data is compressed so less data has to be sent.
Aux cords carry an analog audio signal. Your phone or computer has already converted the audio from 1s and 0s into an actual signal that a speaker needs. This signal alone can operate earbuds and most headphones with no additional hardware, while speakers will amplify it first – the signal is made more powerful, but its shape is not changed.
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