Are you unsure if Ethereum Classic is a wise investment? “Is etc a good investment in 2022?” you may wonder. If valid, then this is the article for you. When Ethereum Classic (ETC) was born from the ashes of the original Ethereum network in 2015, it sparked a firestorm of debate.
Many in the crypto world were undecided about the Ethereum sibling. The truth is that Ethereum Classic has been active, and there is so much to the cryptocurrency than meets the eye if you are prepared to do some investigation.
We’ll discuss as much about Ethereum Classic as possible in this tutorial so you can determine whether it’s a suitable investment for you.
What is ETC?
Ethereum Classic is an accessible blockchain-based system that provides decentralized applications. To execute programs or instruction sets, it employs the ‘Ethereum Virtual Computer,’ an Actually turning virtual machine. It’s worthwhile to note that financial intermediaries are an important part of the blockchain sector.
They’re referred to as self-executing electronic programs that run as per agreed-upon specifications. The Ethereum Classic infrastructure is permissionless, which means you don’t need invitation to enter or influence the course.
Third parties, hefty fees, and regulatory limitations are no longer necessary since the decentralized network. Let’s not forget that this is one of the cryptocurrencies’ key goals. This gets done to guarantee that cross-border transactions are secure without the need for third-party providers or central banks.
Ethereum Classic’s Background
Following the infamous DAO incident, in which more than $50 million in ether got stolen in a 51 percent assault, Ethereum Classic got established in 2016 as a hard fork of the Ethereum network.
The DAO (Decentralized Autonomous Organization) was designed to function as a venture capital fund and developed as a smart contract on Ethereum. In other terms, the DAO would let anyone contribute their crypto ideas and gain financing for them.
Despite this, a hacker stole almost $50 million in Ether. A 51 percent assault occurs when a single person or a group of individuals gains control of 51 percent or more of the computer power on a blockchain. They can alter transactions with this degree of authority.
Advocates of the new version of Ethereum sought to undo the hack and refund the stolen assets, while supporters of the previous version thought that ‘Code is Law’ and that blockchains should not be tampered with regardless of the result.
As a result, the prior, untouched version became Ethereum Classic, which some regard as the real Ethereum. The notion of code as the law would become a cornerstone of Ethereum Classic’s ideology, and many people recognized it as valuable.
Is ETC a Good Investment
Yes. Etc is a good choice for blockchain fans who believe that blockchains must not be interfered with and who want to broaden their holdings.
This is particularly true amid recessions. We should highlight that the Ethereum Classic organization has indeed been engaged in the crypto business during the present coronavirus epidemic.
The initial model, which aims to collect digital certificates and prevent fraud beyond boundaries, is supported by Ethereum Classic Labs. This could aid in improving locally and abroad protocols when in an outbreak.
Furthermore, as previously stated, Ethereum Classic is capped. This might raise prices by increasing scarcity and demand. As developers define, platform tokens are an essential component of a blockchain system that balances financial advantages for critical stakeholders like users, developers, financiers, and miners.
Its monetization keeps everything running smoothly and aids in the environment’s bootstrapping. However, economic history has shown that long-term financing is impossible without two fundamental features, usefulness and scarcity.
With the Agharta and Phoenix splits, Ethereum Classic has strengthened its links to Ethereum. These splits have improved Ethereum Classic’s compatibility with Ethereum.
ETC Investment: More Facts
To make an informed investment decision, you must first understand the benefits of investing in ETC. Even though ETC is not as popular as ETH, purchasing Ethereum Classic provides several advantages. Here are some of ETC’s most appealing features:
Ethereum Classic is a decentralized cryptocurrency.
Etc, like other cryptocurrencies, is decentralized, with nodes located all over the world. This implies that payments and operations may get completed without relying on expensive third parties or government regulations.
The Original Ethereum is Ethereum Classic.
Many people refer to Ethereum Classic as the “original” or “genuine” Ethereum since it is the unmodified version of the Ethereum blockchain. Those who feel Ethereum has evolved too much since its inception would find this intriguing. Users have formed a committed core because of their firm conviction in the platform’s immutability.
“Ethereum Classic is the continuity of the original Ethereum chain’s unmodified history,” according to their website. The ETC network got created to uphold the “Code is Law.”
It supports smart contracts and decentralized applications (dapps).
Because Ethereum Classic is identical to Ethereum in terms of technology, it’s no surprise that one of its main merits is that it allows smart contracts and decentralized applications (dApps). This may get used in a variety of sectors.
These smart contracts and dApps need ETC as fuel to run, boosting demand for the currency. As a result, the more developers who join the network, the more ETC will potentially be valued.
ETC is less expensive than ETH
Despite its difficulty surpassing ETH, ETC remains in the top 20 cryptocurrencies by market capitalization. Furthermore, ETC is substantially less costly than ETH, making it an excellent investment for newbies.
And it’s not only Ethereum that’s pricey; transactions may be relatively expensive as well. Transaction fees have risen recently, particularly during the latest crypto bull run. Ethereum becomes nearly useless for developers as a result of this.
On May 12th, according to research, the average transaction price for Ethereum hit $69.43. On May 19th, it touched $71.72. As a result, Ethereum Classic is a superior platform for technical users to develop.
It is attempting to form bonds with Ethereum.
ETC and ETH know that they can accomplish more by working together despite their differences. For example, Ethereum Classic’s Phoenix hard split, which took place in 2020, made Ethereum Classic more compatible with Ethereum for the first time in years.
Developers will be able to work across platforms and promote innovation. This could help Ethereum Classic get more users.
IOHK is helping to improve ETC.
Most of the development work on Ethereum Classic gets done by Charles Hoskinson’s blockchain startup, Input Output Hong Kong (IOHK), which also created Cardano.
Since they began working on the project, they’ve released Mantis, a natively developed Ethereum Classic client. Its goal is to reduce assaults and increase security.
Ethereum Classic Is Increasing In Value Over Time
Despite a significant drop in value after the bull market in May 2021, ETC is still far more important than it was at the start of the year and throughout most of its life.
ETC began 2021 at roughly $5.7257 and, by May 6th, had achieved an all-time high of $176.16. It is presently $54.72 at the time of writing, over ten times greater than it was at the start of the year. This indicates that, although there will always be significant peaks and troughs; ETC’s price is generally rising.
Frequently Asked Questions
Is etc A Good Investment?
Yes. Etc is a suitable investment for blockchain enthusiasts who think blockchains should not be tampered with and those looking to diversify their portfolios.
What is the best way to purchase Ethereum Classic?
With eToro, you can buy Ethereum Classic in four easy steps. This is what you must do.
Step 1: Visit the eToro website and click the ‘Join Now’ button. After that, you must complete the registration form.
Step 2: You’ll need to confirm your identity and address. This is to avoid fraud and to adhere to anti-money laundering regulations. This might take a while.
Step 3: Put down a deposit. To purchase Ethereum Classic, you must do so. The minimum investment is usually $200 or $50 in the United States. However, the minimal deposit in other nations is much larger. So double-check this before you begin!
Step 4: Purchase ETC. Navigate to ‘Trade Markets,’ ‘Crypto,’ and ‘ETC’ (Ethereum Classic). You will then be able to choose how you want to purchase ETC.
In 2025, how much will Ethereum Classic be worth?
With widespread acceptance and price estimates, the Ethereum Classic price gets expected to grow to roughly $270 by 2025, exceeding its previous all-time highs.
Is it true that etc is superior to Eth?
No. The Ethereum Classic network has a market valuation of $9.5 billion as of Q3 2021. The ETC network has adopted Bitcoin’s lead by restricting the number of tokens available to about 210 million. Ethereum is now the apparent victor in the two market capitalizations where ETH, and ETC got compared.
In conclusion, etc provides diverse merits for crypto investors. Thus, the above highlight on ” is, etc a good investment” will be indispensable for you.
I am Lavinia by name and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.