For the uninitiated, there may be some confusion as both Grayscale investment vehicles include the word "Ethereum", and in the current cryptocurrency frenzy, one can easily be influenced to make an inappropriate decision based solely on asset price, which is lower for ETCG currently. Data by YCharts.
My objective is to explain which one is better and for this purpose, I explore the ability of Ethereum, Grayscale Trust's underlying asset to create smart contracts which are finding wider utilization in the DeFi space. I start by differentiating between the two trusts. First, as per Grayscale, ETHE is " solely and passively invested" in Ethereum ETH and enables investors to gain exposure to the cryptocurrency space in the form of security, thus avoiding the buying, storing, and safekeeping challenges.
As for ETCG, it is " solely and passively invested in Ethereum Classic ETC ", again enabling investors to benefit from gains while avoiding the hassles of having to manage crypto directly. Source: grayscale. Now, since both Grayscale funds invest in cryptocurrencies, in order to assess the potential for future growth, it is important to glance at the history of Ethereum, which was launched as a specific blockchain for competition against Bitcoin.
Its creator, Vitalik Buterin, wanted to give the possibility to all users to create decentralized applications thanks to "smart contracts". First, unlike Bitcoin, in addition to being crypto, Ethereum is actually a protocol that was originally designed to develop decentralized applications, whose intent is to revolutionize the traditional banking system by circumventing intermediaries.
DeFi applications now span virtually all areas, such as insurance, banking, lending, leasing, etc. As a solution, a code change was recommended. This is where the concept of the hard fork radical change emerged, but, some opposed the idea on basis that making a change to the blockchain even to make it tamper-proof amounted to "violating" the original code and not respecting the fact that " smart contracts must be irreversible ". Eventually, at decision-making time on July 20, , resistance was overcome, and the new channel recorded the hack, returned the funds, and kept the name Ethereum ETH.
As for other differences, ETC has a token issuance cap of between and million , but ETH does not have a limit. This resulted in developers losing confidence followed by a drastic fall in the hash rate, or computational power used when mining cryptocurrency. I could have stopped here and been bearish on ETCG, but it would have been unfair not only to the ETC community but also denied investors of an opportunity. For this matter, vulnerabilities were eventually addressed through " aggressive innovation " by core developers and ETC Cooperative in the blockchain's PoW.
Source: 2miners. Here, the fact that the hash rate has increased also provides more incentives to miners to join the network and bolster security, and as per T he Next Web , "A high hash rate, when compared to a lower one, is preferable as it effectively means the network is more secure from percent attacks".
Additionally, the ETC community was supported by efforts undertaken by IOHK , a blockchain research company through the Mantis project, and got a boost from Poloniex the legendary crypto exchange platform, paving the way for others to do the same. Its progression is certainly much slower than ETH, but they have been consistent, except for that May spike as seen in the chart below. In this respect, one of the risks according to Grayscale relates to the deviation in the trading price of ETHE or ETCG shares from the digital asset holdings per share.
This is because of the "holding period under Rule " and the lack of an ongoing redemption program, there is no arbitrage mechanism to keep the price of the shares closely linked to the Index Price". Source: sec. Consequently, some investors may find it better to buy and hold the coins directly, instead of investing through Grayscale and paying its annual management fees of 2. For this purpose, many trading platforms and FinTechs now offer crypto trading facilities, but here, investors should be aware that these charge commission fees, withdrawal fees, and even inactivity fees , depending on the platform.
Eventually, it is up to investors' individual objectives, but for those who want to avoid the hassle of having to frequently track crypto investment returns, the Grayscale funds' ability to be traded through brokers without incurring commission fees makes sense. Looking across the industry, there are funds with lower fees, like the Bitwise Ethereum Fund which carries fees of 1. This signifies that DeFi is still in its infancy, with decentralized finance having really exploded only from Moreover, as per news.
Along the same lines, J. Morgan JPM says that "Ethereum is at the heart of decentralized finance and the market for non-fungible tokens are two booming areas". Ethereum is often considered the king of smart contracts. To provide an example, Ethereum facilitated the creation of leading coins like Binance Coin and crypto games like CryptoKitties and is now the leading DeFi platform. The Ethereum team also continuously upgrades Ethereum to improve scalability and user experience.
And being the second-largest cryptocurrency and largest dApp and smart contract platform, they have no shortage of developers willing to work with them. This also means they can implement changes much faster than Ethereum Classic. As such, according to experts, one of the main purposes of Ethereum Classic remains mainly in preserving the original Ethereum code and historical record.
Another difference is that Ethereum Classic is still mined, while Ethereum 2. Curiously enough, because Ethereum Classic is mined, the network is in a way similar to Bitcoin; its monetary policy relies on being capped and algorithmic.
But generally speaking, Ethereum is winning the popularity contest. There is a vast divide in the price between Ethereum and Ethereum Classic. Historically speaking, the two were much closer when ETC was first introduced in And as time went by, that divide only grew wider. The two also seem to be affected by the same economic factors as well. Both shot up in the bull run, fell in and rose again in early However, as Ethereum Classic is a lot cheaper, it means it is a lot easier to buy into.
This could mean that you could buy up a much larger amount of Ethereum Classic if you have the funds to do it. Of course, though, for this to be worth it, you really have to believe that Ethereum Classic can reach the same levels Ethereum has reached. Meanwhile, Ethereum transaction fees can be volatile and at times very expensive.
Looking at data from YCharts , the average Ethereum transaction fees were very high in May So, why Ethereum is at the top of its game, there are several ways in which ETC could undercut them. Would you consider investing in Ethereum Classic?
ETC, called ether, is the native cryptocurrency of Ethereum Classic. The difference is in the ticker symbol. For a start, they can be used to pay gas fees fees to compensate the computational energy for processing and validating transactions. That said, there are some significant differences, too. ETC coins are mined and there is a limited supply of ,,, with ,, On some platforms, you may also see ETC being traded against other fiat currencies and even cryptocurrencies.
Here we should mention that the Ethereum Classic team has participated actively in the crypto sector during the ongoing coronavirus pandemic. Ethereum Classic Labs supports the OriginalMy project that aims to facilitate the process of collecting digital signatures and tackling fraud beyond borders, which can improve local and international processes during the pandemic. Moreover, as mentioned above, Ethereum Classic is capped. This can increase scarcity and demand and push prices up.
As developers put it:. Its monetization makes everything tick and helps to bootstrap the ecosystem. Ethereum Classic has also worked towards creating closer ties to Ethereum with the Agharta and Phoenix forks. These forks have made Ethereum Classic more interoperable with Ethereum. At the same time, investing in Ethereum Classic remains fairly risky in terms of security.
Then came the dreaded In , like much of the crypto market, Ethereum Classic saw a huge spike in price. Its first major movement upwards since Based on this information, we can say that Ethereum Classic follows market trends. Specifically, if Bitcoin and altcoins are up, ETC will likely follow. Like most altcoins, Ethereum Classic is very susceptible to news related to Bitcoin. In the last few price jumps and crashes, this is exactly what happened.
One of the primary things they have aimed to do to tackle this is security, and you can see they started working on this in their April development update. If you are considering buying Ethereum Classic ETC , then you might want to know how much it could be worth. Prices may increase further, as ETC is trying to improve its interoperability with other blockchains and security. ETC could enter the top 10 cryptos list in the next five years and start competing with leading altcoins like Cardano , NEO , and even Ethereum.
Always do your research and collect accurate data before you start trading any digital asset. Many experts believe that ETC will increase in value in the long-term as the team has chosen blockchain immutability and transparency. A lot can change in the space of a decade. Other forecasters believe a lot more time is needed before this point. Elsewhere, Wallet Investor is the only other site wild enough to make big predictions on ETC, but they are much more relaxed.
Ethereum Classic is definitely worth considering in For those who believe in the Code is Law principle, Ethereum Classic is a great investment. Ethereum Classic is also trying to establish itself as a major player in the Decentralised Finance DeFi space, which is one of the faster-growing sectors today. Do not forget that cryptos can be also highly volatile and risky, so never invest more than you can afford to lose!
The attacks took place in August The situation was very embarrassing for Ethereum Classic. It showed that they had still not fixed the issue that caused Ethereum to split away four years before. A big turnoff for investors. However, with the upgrades that have been made since this time, there is a lot less to worry about. Not only do some see him as a controversial character, but some might also say that by working on both Cardano and Ethereum Classic, he has a conflict of interest.
Ethereum Classic may rise again in the coming months and years. Looking back historically, in the long-term, Ethereum Classic has appreciated a lot since its beginning. So, with that in mind, it is fairly likely that even if ETC rises and falls dramatically, in the end, it will still be up. Of course, though, no one can say this for sure.
While Ethereum Classic is definitely worth watching, the truth is that Ethereum is the leader in smart contract deployment. As stated above, Ethereum ranks second in terms of market cap and adoption, only after Bitcoin. As Buterin implied , if Bitcoin is a pocket calculator, Ethereum is a smartphone!
If the Ethereum transition is horrible, developers will want something similar, but without the issues. Furthermore, though many believe proof of stake is better and more efficient than proof of work, there will always be others who disagree. In other words, depending on your goals and experience, always aim to diversify your portfolio to reduce risks and maximise profits. And of course, choose a reputable broker that can help you start investing in cryptos today!
Read more: Ethereum Vs Ethereum Classic. Ethereum Classic is probably a buy right now as it has proved to us that it can break out into new all-time highs. On top of that, even if Ethereum Classic sinks, it has the potential to remain higher than it was before. Suggesting it can accumulate a lot more in the long-term. A key thing to look into is the adoption of Ethereum.
If more people start to trade ETC and businesses start to accept it or use the platform for their businesses, it will be safer and more likely to make you money. So, it looks like after a bit of an unlucky start, things can only get better for Ethereum Classic. With different advantages, such as its unaltered nature and limited supply that can enhance scarcity and demand, Ethereum Classic could be a good investment.
Even ETC Google searches lag behind compared to other coins. Search interest in Ethereum blue and Ethereum Classic red over the last 12 months. Source: trends. Many believe that unless Ethereum Classic switches to proof of stake these attacks may continue. But hey, investing in ETC in is not a bad idea at all. All you have to do is analyse its risk-reward potential and decide for yourself if you should add ETC to your portfolio!
Remember that apart from holding, you can also start trading ETC and take advantage of both upward and downward price changes. Is It A Good Investment? Still have questions about Ethereum Classic? Maybe these frequently asked questions will help. The point of Ethereum Classic is to create a smart contract and dApps platform with a different approach and philosophy to Ethereum. Ethereum Classic practices the Code is Law philosophy, believing that blockchains should not be manipulated for any reason.
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|Crypto concepz||This coin has shown itself to be a popular and competitive asset among traders, and its performance has gone up sharply. This is because of the "holding period under Rule " and the lack of an ongoing redemption program, there is no arbitrage mechanism to keep the price of the shares closely linked to the Index Price". Moving forward for an ETC coin price prediction for and for the ethereum classic worth investing of the year, it remains to be seen how well the market recovers from recent crashes. Mar 22, But what goes up this fast can easily come down just as quickly. Devs will want something similar but without the issues. Now that we know what Ethereum Classic is and how it was created, we should look into its technicalities.|
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Because Ethereum Classic is an offshoot of Ethereum, the success of ether can push investors into Ethereum Classic. If Ethereum is getting too. Check out the current Ethereum Classic (ETC) price, market cap, and buy Ethereum Classic on bitFlyer today with as little as $1! Ethereum Classic is a good investment for blockchain enthusiasts who believe that blockchains.