what is ethereum clasic
Ethereum Classic – full decentralization is possible
Ethereum Classic is an incredibly popular cryptocurrency among experienced trader due to the outstanding resistance of its system to unpleasant circumstances and market perturbations.
“Code is the law” – this motto of Ethereum Classic appeared to be very attractive for different types of users from crazy programmers to top international investors. Ethereum Classic was a project gathered the most skilled developers who managed to create a powerful system invulnerable for the existing threats and risks.
It often happens that “online rebels” and anarchists are the main audience of a new highly decentralized cryptocurrency. Without a doubt, such followers have rather negative impact on the reputation of a cryptocurrency, but Ethereum Classic is a totally different case. This system is appreciated by everyone who understands the world of crypto-trade well.
What’s old is new again
Technically Ethereum Classic is a new brand inherited the system developed earlier. This system is based on smart contracts and was used in the previous Ethereum project. You may have heard that Ethereum developers created DAO – a trading platform based on the first Ethereum system. DAO was supposed to turn into kind of an independent investment service with its own currency (tokens) and environment, however an unknown hacker managed to steal a vast amount of funds in the very beginning.
An interesting and awkward situation occurred – it was possible to take the stolen money away from the hacker, however it would be a violation of decentralization rules! The thing is that the hacker merely used a vulnerable point of the system and stole the electronic money valued for more than 50 million dollars. Finally, Ethereum team gave up on the great idea of decentralization and returned the money back to the system.
As expected a lot of customers got mad and started selling Ethereum out. In its turn, it led to abrupt prices fall and lack of interest to the cryptocurrency.
Therefore, Ethereum Classic is a reincarnation of Ethereum. This time the team has made the mistakes correction and provided users with 100% decentralized system – no vulnerabilities have been found yet.
Since then “250” has become a magic number for Ethereum Classic – ETC sales grew by 250% within first week and the capitalization of this cryptocurrency achieved 250 million dollars at the peak.
Today there is well-balanced demand for Ethereum Classic and if you are seeking for a predictable and reasonable investment this cryptocurrency would be a good solution.
Advantages of Ethereum Classic
Ethereum Classic is available at the biggest and most popular online exchanges like Poloniex, Kraken, Bittrex and others. That is the best proof of ETC credibility. It was a huge surprise for traders when such a conservative exchange service as Poloniex was the first website added Ethereum Classic. Undoubtedly it was one the reasons why people started buying it like crazy.
Respect to the users is another main advantage of ETC – or of the ETC team to be precise. These guys made a handsome gift to everyone involved in Ethereum mining. They left Ethereum Classic blockchain unchanged – it is still the same as in Ethereum. It means that those who mined Ethereum can now mine Ethereum Classic without changing anything in their settings. That is how loyal customers are obtained! A great solution, especially considering that ETC mining has lower difficulty than ETH mining.
Finally, Ethereum team has realized its mistake and told that the funds stolen by the unknown hacker will be eventually returned to him. Now the money is frozen – it will get unfrozen on July, 28 2017.
Ethereum Classic is a popular cryptocurrency which is very easy to both buy and sell. Purchasing it you don’t have to worry about how to change it for other types of electronic money. Nowadays Ethereum Classic can be directly changed for fiat USD, EUR as well as for BTC, LTC, Perfect Money and a great number of other electronic currencies.
Such a huge capitalization of Ethereum Classic is a good insurance against sudden price drop. Of course, no one could ever guarantee that this or that cryptocurrency grows or falls – that’s simply impossible – but the probability of serious, sudden and long-lasting negative phenomena when capitalization is so high is much lower than for other smaller cryptocurrencies.
Disadvantages of Ethereum Classic
As we have just mentioned in the end of July Ethereum team is going to unfreeze the money stolen by an unknown hacker – over 50 million US dollars! That is a huge amount indeed. Here we have a great advantage – transparency – turning into a serious disadvantage – unpredictability.
There is a very high probability that after receiving the money back this smart hacker will start selling ETC right away. Just imagine how the exchange rate would change then! High capitalization and stable demand would hardly help here since the hacker will possess to large amount of ETC.
Of course, we cannot tell for sure that he or she will sell away all obtained ETC, but even the probability of such an outcome will definitely have negative impact on the exchange rate of ETC. Please keep that in mind when thinking about purchasing Ethereum Classic coins in the nearest future.
As for other disadvantages, we don’t really see anything significant. Ethereum Classic is a well-protected cryptocurrency based on a system hacked once. It was exactly the situation when such a mistake brought positive result – the system was rechecked and few vulnerabilities discovered were removed.
It’s up to you when and where to buy Ethereum or not to by ETC at all – we just provide relevant information. Anyway, we tend to believe that Ethereum Classic is still a good long-term investment since this electronic currency is expected to display steady and moderate grow within next few years.
ETC would be a good way to diversify your investment portfolio together with BTC and LTC.
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