Perhaps you already knew that there is another version of Bitcoin called Bitcoin Cash. But did you also know that there are multiple versions of Ethereum?
Ethereum Classic (ETC) is one of these versions. In fact, this is even the original Ethereum, hence ‘Classic’ in the name.
In this article, I will explain what it is, how this blockchain and cryptocurrency work, and whether or not it’s a good investment.
Origin of Ethereum Classic (ETC)?
In 2016, the cryptocurrency Ethereum Classic – ETC for short – was created as an Ethereum hard fork.
Note: A hard fork occurs when the original codes of a blockchain are changed in such a way that the newly generated data no longer matches the old data.
This is because the DAO of Ethereum was hacked and around 3.6 million coins of the cryptocurrency Ether were stolen. The DAO (Decentralized Autonomous Organization ) was a form of investor-directed venture capital fund built on Ethereum. Holders of the DAO token could vote on projects, and projects with the most votes would receive investment from DAO.
If the investment made money, the money would be distributed among the token holders. This was seen as a revolutionary idea at the time. The DAO raised an ICO for its fund, which attracted over $ 150 million of investments in Ether, giving DAO huge influence in the Ethereum community. However, the DAO was not properly programmed, and smart contracts had vulnerabilities.
Due to the DAO hack, the price of the Ether dropped from $ 20 to $ 11. After the attack, the community quickly gathered to decide on a solution. The vast majority agreed to hard fork the Ethereum blockchain, which was supposed to undo the breach and return the stolen
However, there was a minority who believed the hack was due to the incompetence of DAO developers and a reversal was against the belief that the blockchain could not be tampered with. The majority went on to create the Ethereum hard fork and the remaining blockchain with the DAO hack is now known as Ethereum Classic.
How Ethereum Classic (ETC) works
Since Ethereum Classic emerged from the Ethereum project, almost the same technology as Ethereum is used here. Applications are written on the blockchain using the Turing Complete programming language.
In addition, all transactions carried out are recorded and stored, as with all other blockchains. The creation of new coins takes place using the Proof of Work process. Ethereum Classic is also a classic ERC 20 token.
Can Ethereum Classic (ETC) overtake Ethereum in the future?
At the beginning of 2022, Ethereum Classic is among the top 50 in the ranking of cryptocurrencies by market capitalization. On the other hand, Ethereum is in second place and is also often referred to as the “eternal number 2” behind the cryptocurrency Bitcoin.
It’s almost impossible for Ethereum Classic to be ahead of Ethereum in this ranking in the foreseeable future. That’s because Ethereum gets significantly more financial support and has a clear advantage over Ethereum Classic; the Ethereum community is also larger.
However, a rising price of Ethereum can cause Ethereum Classic to rise as well. Because many users are then of the opinion that they would rather buy Ethereum Classic because the price is lower.
How and where to buy Ethereum Classic (ETC)
These are the two 2 ways for you to buy ETCs but the easiest and fastest way is through Binance.
- Buy Ethereum Classic through brokers with CFD brokers
This mode allows you to trade Ethereum Classic cryptocurrency without owning it, using CFDs (contracts for difference).
This system does not aim at the actual possession of the cryptocurrency but its negotiation, with the possibility of speculating on the downside of the cryptocurrency and quickly opening and closing a position. Examples of CFD brokers are IQ Option, eToro, Capital.com, Libertex, etc.
- Purchase Ethereum Classic through an exchange
If instead of trading with CFD brokers, you prefer to buy the ETC cryptocurrency and keep it in your wallet, then I recommend that you rely on exchanges. Examples are Coinbase and Binance.
Ethereum Classic (ETC) contract address
Below is the Ethereum Classic (ETC) contract address:
BNB Smart Chain (BEP20): 0x3d6545b08693dae087e957cb1180ee38b9e3c25e
Ethereum Classic (ETC) current state of the market
ETC has a market cap value of around $2,961,734,983 and a daily trading volume of $804,084,580. Its current price is $21.95 and it ranks #29 on CMC.
Is Ethereum Classic (ETC) a good investment?
If you ask yourself whether you should invest in ETC or not, the forecast of various analysts and experts will be helpful for the answer. At this point, it should be mentioned that there are no guarantees – the forecasts are based on current data.
However, the Ethereum Classic Chart can be completely different again in the foreseeable future. For this reason, it is also important that you only invest freely available money. No matter how promising the forecasts are or how good the alleged strategy may be.
Ethereum Classic (ETC) price prediction
Let’s take a look at the prognosis from some major crypto analysts:
- WalletInvestor is quite optimistic about ETC. Their prognosis states that the coin will reach $230.652 in the next 5 years.
- GovCapital also agrees that the price of ETC will shoot up in 2025. Their opinion is that Ethereum Classic is quite capable of easily surpassing $221 by then.
- DigitalCoinPrice is a bit reserved. They believe ETC will stay on the $50 mark in the first half of 2024.
Short-term speculation or long-term investment: What does a look at the Ethereum Classic(ETC) Chart reveal?
Are you planning short-speculation or do you want to invest in ETC in the long term? A look at one or the other Ethereum Classic Chart shows that in both cases high profits are possible – but also losses. Because the crypto market is extremely volatile – that should not be forgotten. This is also the reason why when investing in cryptocurrencies, only freely available money should be invested.
Short-term investing and speculating is very interesting since Ethereum Classic has natural volatility, so you could make attractive profits within a very short time. You can buy real coins or bet on whether the Ethereum Classic course will go up or down if you decide to trade CFDs.
In the end, you will probably be surprised at the potential Ethereum Classic has if you take a closer look at this cryptocurrency, which was created from the Ethereum cryptocurrency. Ethereum Classic may seem like a knockoff or copy at first glance, but the cryptocurrency created from Ethereum turns out to be quite promising and also interesting when you look at the various goals and stages that are planned in the background.
Ethereum Classic is definitely a cryptocurrency that can gain strength in the foreseeable future – and not only because the entire crypto market will become stronger, but also because of the factors affecting the price.
So if you are seriously considering investing in cryptocurrencies, you are well-advised to then deal intensively with Ethereum Classic. Because with this cryptocurrency, the signs are very good that the price will rise in the foreseeable future – especially if you plan to invest in the long term, Ethereum Classic may well be recommended.