v-model is for two way bindings means: if you change input value, the bound data will be changed and vice versa. But v-bind:value is called one way binding that means: you can change input value by changing bound data but you can't change bound data by changing input value through the element.
v-model is intended to be used with form elements. It allows you to tie the form element (e.g. a text input) with the data object in your Vue instance.
Example: https://jsfiddle.net/jamesbrndwgn/j2yb9zt1/1/
v-bind is intended to be used with components to create custom props. This allows you to pass data to a component. As the prop is reactive, if the data that’s passed to the component changes then the component will reflect this change
Example: https://jsfiddle.net/jamesbrndwgn/ws5kad1c/3/
Hope this helps you with basic understanding.