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I understand the difference between capital and capitol, but my question is why does the difference exist?

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Well, they mean different things. Are you asking because they're spelled similarly? – simchona♦ Aug 2 '12 at 22:14
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As pointed out by simchona, when we need two words for different things, we use two different words. This is akin to asking why we have bleed and bless — or perhaps even car and bar; I'm really not sure what the question here is. Please clarify, then people can vote to reopen. Make sure to check the dictionary entries for capitol and capital first, or Etymonline. – RegDwighт♦ Aug 2 '12 at 22:26
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I don't know whther it is helpful for you to know that Capitol Hill is the seat of federal goverment in the US, while the Australian federal parliament is housed on Capital Hill. – Carlo_R. Aug 3 '12 at 0:37

closed as not a real question by RegDwighт♦ Aug 2 '12 at 22:26

It's difficult to tell what is being asked here. This question is ambiguous, vague, incomplete, overly broad, or rhetorical and cannot be reasonably answered in its current form. For help clarifying this question so that it can be reopened, see the FAQ.

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