The cryptocurrency market is massive when you compare it to where it started over a decade ago. This makes it difficult for new crypto investors to break into the niche, as it is difficult to know where to begin.
This is where we come into play, as we will compare various digital assets to each other to show which will be the best investment. In this piece, we will be comparing Ethereum with Ethereum Classic.
The best way to learn more about a cryptocurrency is to start with its history. This can be a good indication of how stable a digital asset is based on who created it and how.
The Ethereum blockchain white paper was published in November 2013 by Vitalik Buterin. Buterin is one of the many founders that helped create the Ethereum blockchain. The other founders include Mihai Alisie, Joseph Lubin, Jeffrey Wilcke, Anthony Di Lorio, Amir Chetrit, Charles Hoskinson, and Gavin Wood.
It wouldn’t take long for the public to take notice of Ethereum. Buterin drew attention to the project at a Bitcoin conference in early 2014. The public was able to purchase Ethereum tokens at this time, but the Ethereum blockchain would only go live on July 30, 2015.
Ethereum users could still purchase tokens in 2014 but could not use them to validate transactions or move them.
Ethereum Classic (ETC)
Ethereum Classic is the original Ethereum blockchain. While this may seem confusing, there is a good explanation for it. Ethereum Classic emerged in 2016 as a result of the Decentralized Autonomous Organization (DAO) hack, which caused many users to lose funds.
These users were understandably unhappy about losing their funds. They decided to roll back the blockchain, creating a hard fork and building the Ethereum Classic blockchain. The Ethereum Classic network has since received many updates.
The new Ethereum and Ethereum Classic came from the same blockchain. Most of the Ethereum community decided to move to the new blockchain. This is why Ethereum remains the more popular cryptocurrency.
What It Does, And Why It Was Created
Knowing why a digital asset was created and what it does can help you understand whether or not it will be a good investment. This is why we will discuss this further below.
Vitalik Buterin decided to create the Ethereum network after becoming interested in the Bitcoin community. What interested him the most was the decentralized payment system.
He liked the idea of taking power away from centralized organizations like governments and banks. This is why Buterin and his co-founders created the project to act as a decentralized global platform that can be used as a payment system. The platform’s other abilities are that it can run decentralized apps and store data.
When the Ethereum network was first created, it used a proof-of-work consensus mechanism like Bitcoin. It recently changed to the more environmentally-friendly proof-of-stake system on September 15, 2022.
Ethereum achieves this by establishing a peer-to-peer network that can execute and verify application code known as smart contracts.
Ethereum Classic (ETC)
As noted above, Ethereum Classic was created after the DAO hack that saw many Ethereum users lose funds. While the rollback allowed users to recover their funds, there were other reasons for reverting to the older blockchain technology.
Many Ethereum Classic users appreciate the fact that users cannot alter transactions in the blockchain’s history. These users saw some of the code planned to be used for the new Ethereum and viewed it to be a violation of the guarantee the initial software proposed.
They believed that no one should be able to change a blockchain ledger. This is Ethereum Classic continued to move in a different direction. Ethereum Classic is no longer compatible with Ethereum due to significant updates to the Ethereum protocol.
The price history of a digital asset is likely the most important aspect to consider if you are planning on investing. This information can show you how stable a specific cryptocurrency is.
When Ethereum launched its Ether (ETH) token in August 2014, one token was worth $0.31. By early 2016, the coin surged in value, as a single token was worth $31 at this time.
In 2018, the cryptocurrency world as a whole began to boom. This benefitted Ethereum’s ETH token, as a single coin was worth over $1,000.
Unfortunately, after this peak in the crypto industry, most tokens would begin to see a steady decline in the years to come. However, 2021 was a massive year for both Ethereum and the rest of the cryptocurrency community.
Halfway through the year, one ETH token was worth $4,038. By the end of the year, Ethereum would reach its ultimate peak when a single token was worth $4,701.
2022 has not been a great year for cryptocurrency, and this has been reflected by most tokens seriously dropping in value. This is why one ETH token is worth $1,232 in December 2022.
After the hard fork took place, the ETC token was valued at $0.84 in July 2016. Ethereum Classic then significantly spiked in value over the next year, as one coin would be worth $27 by July 2017.
While the rest of the crypto market surged in value in 2018, Ethereum Classic did not experience all that much growth, as the token was only valued at $34.38 in February. Unfortunately, when the rest of the market plummeted, the ETC token followed suit. By the end of 2018, one ETC token was only worth $5.38.
The coin would continue to fluctuate in value for the next few years until the next crypto boom in 2021. The ETC token would reach its ultimate peak in May 2021, with one token worth $91.34.
The cryptocurrency market would once again plummet in 2022, which is why one ETC token is only worth $18.83 in December 2022.
The market cap of a cryptocurrency is also an important factor to consider when investing, as it determines the total value of a cryptocurrency.
Ethereum currently has a market cap of $150.940B. Ethereum has the second-highest market cap of any digital asset.
Ethereum Classic currently has a market cap of $2.6B. Ethereum Classic has the 24th highest market cap of any digital asset.
- Both Ethereum and Ethereum Classic support smart contracts.
- Both Ethereum Classic and Ethereum are decentralized platforms.
- Ethereum Classic still uses a proof-of-work consensus mechanism, while Ethereum has moved to a proof-of-stake consensus mechanism.
- Ethereum Classic has a limited number of tokens, while Ethereum can produce as many as necessary.
- Prior transactions can be altered on the Ethereum blockchain network, which is not possible with Ethereum Classic.
- Ethereum could be subject to changes in the future, but Ethereum Classic strictly adheres to Ethereum’s original rules.
Cryptocurrency can be a risky investment to make, but you might be wondering how the risks of each project differ.
The biggest risk to crypto also applies to Ethereum, as it is volatile, and its value could spike or plummet at a moment’s notice. This is also unlikely to change, so investors should always be weary.
Ethereum Classic (ETC)
Ethereum Classic is just as volatile as any other cryptocurrency on the market. However, Ethereum Classic is much smaller than Ethereum and could also be affected by competing tokens and platforms.
Where You Can Buy It
You can easily purchase from Ethereum ETH tokens:
Ethereum Classic (ETC)
You can purchase ETC tokens from:
How Can You Exchange ETH For ETC
You can exchange ETH tokens for ETC tokens using nearly all cryptocurrency exchanges mentioned above. The only requirement is that the exchange supports both coins.
While Ethereum and the rest of the crypto industry is in a slump, some experts predict it could reach heights similar to its 2021 peak in the coming year.
Unfortunately, cryptocurrency is a highly volatile market, so there is no way to know for sure that this will be the case.
On the other hand, some experts don’t seem to think that Ethereum Classic will spike or plummet in value all that much in the coming year.
While these experts don’t seem to think the coin will reach its 2021 peak, they have predicted that it may be worth between $27 and $34.