As I sit on a balcony sipping my coffee, knowing it's 10:00 AM Pacific Time, but back home, it's nearly 1:00 PM, I try to justify my sleeping schedule as appropriate. One thing was on my mind as I checked the cryptocurrency prices the day after Elon's statement on stopping payments of Tesla vehicles with Bitcoin because it was an "environmental problem." If you buy that from Elon, see what a lithium crater looks like for the environment. You know what, I'll add a picture at the end of the blog.
Yeah, my theory is Elon is testing the waters of Bitcoin's volatility with the negative news so he can buy some at a discounted price.
Anyways, I looked at cryptocurrencies in the past month that has bloomed with significant price increases, and Ethereum Classic (ETC) caught my eye. I'll detail the recent gains with Ethereum Classic, what Ethereum Classic is versus Ethereum, and some recent news is revolving around the cryptocurrency.
---Disclaimer: I am not giving investment advice, I am only making you aware of the recent news regarding cryptocurrency so you can better understand the coin, technology, and the overall effect cryptocurrencies are currently having in the world we live in.---
To date, Ethereum Classic is $107.00. One month ago, it was only $20.00! That is nearly a 402% increase in price. If you are new to the cryptocurrency area, you probably are curious about the difference between Ethereum and Ethereum Classic.
Question: "What is the difference between Ethereum (ETH) and Ethereum Classic (ETC)?"
Answer: Ethereum Classic and Ethereum used to be one blockchain. Then after a DAO (Decentralized Autonomous Organization) Hack in 2016 on the original Ethereum (Ethereum Classic) blockchain, developers within the blockchain technology decided to 'Hard Fork' from the original Ethereum blockchain. This new blockchain is known today as Ethereum.
Imagine a fork; typically, the utensil branches off into 3-4 smaller branches. Think of the Hard Fork as a family tree. Ethereum Classic and Ethereum are related because they come from the same original parent technology but are entirely separate.
Whew! To simplify the above paragraphs, Ethereum Classic got hacked; Ethereum is a new revised version of the technology. You can buy and sell both as different cryptocurrencies. They are as diverse as you are to your hypothetical brother or sister.
Question: "So what is with the recent spike in Ethereum Classic?"
Answer: There are many theories about this rise in ETC price. One is right in front of our face. With Ethereum's price increasing, individuals speculating in the market see the value of the original fork as undervalued. The difference in the two prices is quite noticeable, though. Ethereum Classic around $107.00, and Ethereum is seeing prices over $4,000 ($4,075 to be exact).
The most significant difference between Ethereum Classic and Ethereum is how each operates. Ethereum Classic is on the Proof of Work spectrum, while Ethereum is Proof of Stake. One thing I would watch within Ethereum Classic is the possibility of a 51% attack. As stated before in my blog "Providing the Differences Between Proof of Work & Proof of Stake," a 51% attack is when 51% of the asset is in one individual's hands, and they can manipulate the market. Ethereum Classic in 2020 witnessed three separate occasions of a 51% attack. Another 51% attack would drastically decrease the price of the cryptocurrency.
Overall, I shed a tear because this current bull market has shown an increase in nearly all the cryptocurrencies I have had on my radar from the 2017 increase. Ethereum Classic is unusual. I felt FOMO(Fear Of Missing Out) when the cryptocurrency hit an All-Time High of $175.00. I did not buy into my greed, though, and I cheered on Ethereum Classic and many other cryptocurrencies from the sidelines. With the information of multiple 51% attacks, previous technology hacking, and the new and improved hard fork version being a better alternative, it's hard to see Ethereum Classic being successful in the long run.
Even with all the above information, if you gave me $10,000 to put in Ethereum Classic or Dogecoin, I would be holding almost 95 Ethereum Classic coins. Even with all the negative news previously with Ethereum Classic, it contains more purpose than any meme coin. Yes, the Dogecoin hate has overflown into this blog post.
Until next time,
Seth Hinkle
Here is the picture of the Lithium Crater:
Website used:
Gedeon, Kimberly. “Why Is Ethereum Classic Going up? ETC Price Skyrockets to All-Time High of $110.” LaptopMag, Laptop Mag, 5 May 2021, www.laptopmag.com/uk/news/why-is-ethereum-classic-going-up-etc-price-skyrockets-to-all-time-high-of-dollar110.
McIntyre, Donald. “How Ethereum Classic Will Surge Past $7,000 in the Next Ten Years.” Etherplan, 11 May 2021, etherplan.com/2021/01/03/how-ethereum-classic-will-surge-past-7000-in-the-next-ten-years/14847/#:~:text=Ethereum%20Classic%20will%20be%20the%20only%20top%20proof,only%20top%20proof%20of%20work%20smart%20contracts%20blockchain.
Moskov, Alex. “Ethereum Classic vs Ethereum: What's the Difference?” CoinCentral, 31 Mar. 2020, coincentral.com/ethereum-classic-vs-ethereum/.
Staff, Forkast.News. “Repeated 51% Hacks on Ethereum Classic Are 'Increasingly Frustrating'.” Decrypt, Decrypt, 7 Sept. 2020, decrypt.co/41044/repeated-51-hacks-on-ethereum-classic-are-increasingly-frustrating-says-etc-labs-ceo.
Picture used:
https://th.bing.com/th/id/OIF.bjC9IixW61j2zfVRsgu4XA?w=239&h=180&c=7&o=5&dpr=1.9&pid=1.7