Cryptocurrency Ethereum Classic: a complete guide for investors

  • Bitzero 
Cryptocurrency Ethereum Classic: a complete guide for the investor

In recent months, the cryptocurrency community has been actively discussing Ethereum Classic. Market indicators of the currency went up sharply, and in the spring it is planned to hold hard forks, which many traders are already looking forward to. However, what are the prospects for Ethereum Classic? How does the cryptocurrency Ethereum Classic differ from Ethereum and can it overshadow the success of a relative? Should I add it to the cryptocurrency portfolio for the 2018? We will describe in this article!

Cryptocurrency Ethereum Classic: the story of the appearance

In the summer of 2016, a scandal broke out in the Ethereum network. Using system flaws, an unknown attacker managed to withdraw more than $ 60 million of investment from the accounts of the DAO fund.

Most of the community members voted for the second option. Hardfork really helped to return the stolen funds and created a new branch, which retained the name Ethereum. Almost all developers of the site, including Vitalik Buterin, switched to it.

However, a significant part of users spoke in favor of preserving the principles of decentralization, which are contradicted by a radical rollback of the system and the cancellation of already-launched smart contracts. Opponents of hardfork remained on the old branch and called it Ethereum Classic.

Two separate branches with two separate cryptocurrencies (ETH and ETC) still exist. Many users do not see any fundamental differences between them. However, they are.

Cryptocurrency Ethereum Classic: Differences from Ethereum

The operation mechanism of the sites is identical – this is the launch of decentralized applications based on our own virtual machine. The scope of application of tokens are the same – for ETC and ETH you can buy other assets and pay for the creation of smart contracts.

As for the technical characteristics, Ethereum Classic has a higher throughput (25 transactions per second, with Ethereum – 15) and less complexity of mining.

How to mine cryptocurrency Ethereum Classic?

It is best to withdraw coins to your stock exchange account. When enrolling coins on a regular cryptograph, the computer often slows down that negatively affects the mining process.

In addition, to earn money on races of the course, coins from the wallet will still have to be placed on the exchange account (and pay a commission for it). So it’s much easier to immediately send the mined coins to the exchange.

Download the program on your PC, find the file with the extension “.bat” in the archive, right-click on it and click “Change”. Fill in all the fields in the window that opens (mining pool, account for crediting coins, etc.) and start the process.

How and why did the cost of Ethereum Classic cryptocurrency change?

However, to the surprise of many, very soon the Ethereum Classic coin appeared on the American Poloniex exchange and immediately rose in price to $ 1.4. The market capitalization of cryptocurrency has grown to $ 250 million, which at that time was even greater than that of Ethereum.

Only a year later, when the cryptocurrency community actively started talking about Ethereum problems (reducing network bandwidth, increasing mining complexity, errors in launching smart contracts, etc.), many users again turned their attention to Ethereum Classic.

Part of the miners brought their power from the new chain and sent them to Ethereum Classic. Newbies were more willing to choose the old chain, work with it required less capital investment than Ethereum.

Even more, cryptocurrency positions strengthened with the advent of the Ethereum Classic Investment Trust investment fund, access to the top Chinese options exchanges (BTCC and ETCWin) and cooperation with renowned figures of the blockchain market.

Chandler Gou, a well-known Chinese investor, said that he was going to launch more than 100 projects based on Ethereum Classic. And Barry Silbert, one of the creators of Digital Currency, began to promote cryptocurrency at Bloomberg Terminal.

By June 2017, the price of ETC has risen to $ 20, and the level of market capitalization – to a billion dollars, which brought the currency into the top 10 of the world ranking CoinMarketCap.

But by November, the excitement around Ethereum Classic had subsided noticeably. Last but not least, Ethereum’s success affected it – the project developed successfully, launched new promising projects and attracted large investors from around the world.

But in the winter the price of the coin abruptly rushed up. It reached a peak of $ 46 in mid-January, and at the time of this writing, it fluctuates within $ 35 36.

The growth of market capitalization also did not take long to wait – the figure has already overcome the $ 3 billion barrier (however, it is no longer included in the top 10 cryptocurrency).

In early March, a certain user with the nickname Dexara plans to separate from Ethereum Classic a new branch called Callisto. According to him, the chain will be faster and more secure, but will keep the ideological principles of Ethereum Classic.

All ETC holders will receive an equivalent amount of coins of the new chain (CLO). Experts are sure that it was the desire to get potentially promising coins for free that prompted many users to buy ETC en masse. And this led to an increase in the market price of cryptocurrencies.

However, despite all attempts by Ethereum Classic to overtake and overtake Ethereum, the new branch does not give up its positions. The market value of ETH is $ 880 (versus $ 36 for ETC), and in terms of market capitalization, Ethereum ranks 2nd in the world ($ 86 billion, more has only Bitcoin).

That is, Ethereum has higher market indicators, and the level of trust in Buterin’s main child is also very high. But Ethereum Classic embodies the “ideologically correct” standard, as many fans of the old branch call it, cryptocurrency.

In addition, today the old branch is actively interested in China and other Asian countries – a region that, as we know, feeds the entire cryptocurrency market. At the same time, Ethereum is more popular in the USA, where major cryptocurrency players also operate. Who will win?

Is it worth investing in Ethereum Classic?

Even despite the success of Ethereum Classic in China and the hype in connection with the upcoming hardforks, analysts are confident that in 2018, the price of Ethereum Classic will not rise above $ 60-65. And then, having passed the peak, at best, it will drop to the same $ 40 that we have now.

So it is worth investing in ETC only in the short term to buy coins of 40 dollars (or lower, if the rate is still adjusted) and then sell for 60 dollars. Moreover, if you buy coins now, in March you can get a similar amount of СLO for free.

But Ethereum is much better suited for long-term investments. Analysts predict that by the end of the year, the price of the coin will exactly exceed the $ 1,000 mark.