Ethereum Classic (ETC) is a relatively new variant of Ethereum (ETH). Both are cryptocurrencies, otherwise known as digital currencies. Ethereum functions with blockchain technology and smart contracts. This governs the framework of all Ethereum-related activity. Smart contracts are fully automated and they only initiate once a set of conditions has been met.
One of the most important and defining characteristics of the Ethereum market was the Decentralized Autonomous Organization (DAO). This smart contract framework was designed to fund all Ethereum-related DAPPS.
For the uninitiated, this refers to decentralized applications, which use open source software, and are incentivized through rewards such as tokens and they follow a specific protocol (algorithmic code for cryptocurrency). A DAO attack took place on June 17, 2016. Hackers infiltrated a weakness in the system and spirited away 33% of the DAO’s funds amounting to $50 million. The repercussions of the DAO attack were felt far and wide. It was not Ethereum’s fault, but this was a critical juncture for Ethereum. Several options were available, including a hard fork, a soft fork, or nothing at all.
Pros and Cons of ETC
The community who opposed the hard fork stuck with the original chain which was now known as Ethereum Classic. Estimates indicate the current value of Ethereum Classic to be around $2.734 billion although significant fluctuations in market capitalization are common. The founders of this blockchain technology wanted it to be tamperproof, and ironclad. The philosophical bent of this perspective explains why Ethereum Classic came to be.
Any upgrades on traditional Ethereum will not be available with Ethereum Classic since it is not backward compatible. For purists, code is law, and that’s precisely why Ethereum Classic has enjoyed surging levels of popularity and is now the twelfth most valuable cryptocurrency.
Among the many pros of investing in or trading Ethereum Classic are its popularity with many of the major financial players in the industry. It is also true to form as a classic exponent of the code is law paradigm. On the flip side, the mainstream Ethereum Community may not be well pleased with ETC.
Given the June 17, 2016 hack, there may be vulnerabilities and cyber-criminals at play with Ethereum Classic. ETC is undervalued, with strong growth prospects compared to ETH. This bodes well for traders looking for long-term value proposition gains in this cryptocurrency.
South Korea Drives up Ethereum Classic Demand
Ethereum Classic’s popularity is now evident across the spectrum. Up until September 2017, ETC was slumbering. However, for several weeks now the price has been resurgent, and is trading well above the $10 level that it was clinging to. ETC is notably less popular than ETH, but there is significant profit potential in this smaller sibling. July 2017 proved to be an exciting month for ETC, and the price surged to almost $23, before retreating.
Since the Ethereum Classic Summit on Monday, November 13 – Tuesday, November 14, 2017, in Hong Kong this cryptocurrency has surged in price. Ethereum Classic is regarded as a ‘true to form’ cryptocurrency. Tremendous levels of speculative trading activity (notably buying) are currently buoying this cryptocurrency. Most of the trading activity is coming through South Korea, Japan, and other Asian power players.
By mid- December 2017, Ethereum Classic was trading at $27.86 per unit, with a market capitalization of $2,734,609,385. At the time of writing, the current BTC in circulation was 98,169,845 digital units.