What is ETC crypto? Is Ethereum Classic a good investment?

Ethereum Classic (ETC) was born from a controversy within the Ethereum community due to the second Hard Fork at block 1,920,000 of Ethereum. So, what is ETC coin, what are the advantages and disadvantages of this virtual currency, and what are the differences between the current Ethereum and Ethereum Classic? Please see the detailed information below.

Contents

1 What is ETC coin, should you invest in it 2025?

What is ETC coin, should you invest in it 2025?

The Origin of Ethereum Classic

Ethereum Classic was created from a controversy in the Ethereum community following a hack at the 1,920,000th blockchain block. This attack stole about 50 million USD from investors, and at that time, Ethereum decided to create a Hard Fork to refund the stolen money, whereas the Ethereum Classic group disagreed as this would weaken the perception that blockchain is immutable when humans can still influence it.

The hack occurred in June 2016, leading to a tense situation about what would happen next. A vote took place to resolve the issue of the stolen funds, and 85% voted for a Hard Fork to reverse the attack, erasing the data of the attack from the network as if nothing had happened.

The remaining 15% disagreed, they were determined to keep the original blockchain chain intact to maintain a 100% immutable ledger. This is in line with the ideal when blockchain was invented, and the hack will still be recorded.

=> Result: Those who agreed with the Hard Fork are now the current Ethereum community. The 15% who disagreed split off to form Ethereum Classic.

If it were you, would you follow the majority to amend the blockchain and return the stolen money, or leave it as is and lose investors’ trust? There are different viewpoints, but in reality, the Ethereum coin is currently far outpacing Ethereum Classic.

What is Ethereum Classic?

Ethereum Classic is a decentralized blockchain platform (DeFi) that allows people to build and use DeFi applications running on blockchain technology. Like Bitcoin, no one controls or owns Ethereum Classic – it’s an open-source project built by people around the world.

Ethereum Classic is the unaltered historical continuation of the original Ethereum chain. The ETC network exists to preserve the principle “Code is Law“, meaning that the code is the law of the Blockchain, all executed commands and transactions are final and immutable.

To prove that they were not wrong in disagreeing with the Hard Fork, Ethereum Classic stated the following:

“This has nothing to do with contract law or criminal law, or other legal considerations. The statement that “Code is Law” is similar to acknowledging the laws of physics. The law of gravity says that if I push a piano out of a window, it will fall to the ground. My pushing the piano out the window doesn’t mean it’s “legal”. And if I do so and the piano falls and kills some people passing by, I would be insane to argue in court that I shouldn’t go to jail because I didn’t violate any laws of physics.
On the Ethereum blockchain, a Turing-complete code operates with very real and tangible value. Because of this, there are always inherent mistakes and unintended outcomes. There will always be transactions and code executions that someone is dissatisfied with. There will be conflicts and disagreements, there will be code loopholes and exploits, there will be fraud and theft, there will be all kinds of ugliness.

Who should resolve all these conflicts? Imagine for a moment that we decide “the blockchain community” will resolve all these issues themselves.

Who will make the call that code execution on the chain is “theft” and what is not? Is this Ponzi scam contract enough to shut it down? Should we accept this dark market when it sells fake IDs and cannabis, but draw the line when it starts dabbling in child pornography and cocaine?

Should there be a democratic voting system (a debating court) to decide on such cases, changing the state of the blockchain based on such decisions? Should there be a committee to decide which smart contract behaviors are ‘unacceptable’ and which transactions are ‘illegal’ enough to justify a hard fork?

What can be the basis for such decisions? Where is the law enforcement agency? Who will be the police, judge, and jury? What is a resolution process? What are the appeal procedures? There are many questions, and no good answers to these questions when it comes to “blockchain justice“.

But it’s even worse if there is no system at all. If the “blockchain community” only makes an exception for a “special case“, managing justice “just this once”. What is so special about this case, one might ask? Why is this theft treated specially, while others are not? Do you need to know who you are, who your friends are, to be treated so specially? How do you get such preferential treatment and demand the right to reverse specific transactions?

It is a whole nest of snakes, avoidable by refusing to be dragged into resolving conflicts and seeking justice related to smart contract execution. And it only requires adherence to the principles of neutrality and immutability of the blockchain.

Therefore, Code is Law on the blockchain. All executions are final, all transactions are immutable. For everything else, there is a time-tested way to adjudicate legal disputes and administer justice. It’s called the legal system.

These are the counterarguments Ethereum Classic presents in response to criticisms that “ETC aids thieves and fraudsters”.

Overall, there will be those who agree with ETC’s viewpoint, and others who do not. Let’s put this aside and analyze the potential development of ETC coin as well as compare it with Ethereum (ETH).

Comparing Ethereum (ETH) and Ethereum Classic (ETC)

Ethereum Classic (ETC)♦ Current Price: $ 26.17

♦ Total Supply: 210,700,000

♦ Circulating Supply: 150,560,123

♦ Market Capitalization: $ 3.94 B

♦ Market Cap Ranking: 43

♦ 24h Trading Volume: $ 104.35 M

♦ Consensus Algorithm: Proof-of-Work

Ethereum (ETH)♦ Current Price: $ 3,245.13

♦ Total Supply: Infinite

♦ Circulating Supply: 120,518,600

♦ Market Capitalization: $ 390.93 B

♦ Market Cap Ranking: 2

♦ 24h Trading Volume: $ 18.35 B

♦ Consensus Algorithm: Proof-of-Stake to enhance security and reduce energy consumption

What is ETC coin?

ETC coin is a virtual currency created by the Ethereum Classic network, functioning and operating similarly to Ethereum before the Hard Fork update.

Basic Information about ETC coin:

Contract: 0x3d6545b08693dae087e957cb1180ee38b9e3c25e
Blockchain: Ethereum
Maximum Supply: 210,700,000 ETC
Circulating Supply: 150,560,123
Current ETC coin Price: $ 26.17

What is the main role of ETC coin? In the Ethereum Classic network, the main role of ETC is: transaction fee payment and as a reward.
Is ETC mineable? The answer is YES, you can mine ETC by installing ETC mining tools on your computer and letting the computer do the rest. The method of mining ETC is quite complicated, so invest286.com will write a separate article for this part later.

Price Trend of ETC coin

Let’s look at the price trend of ETC coin through the real-time chart image below:

Note: Choose the time frames of 1M, 3M, 6M, 1Y, ALL corresponding to 1 month, 3 months, 6 months, 1 year, or the entire period to see the price trend over a certain period.

At the time of splitting from Ethereum on 24/7/2016, the price of ETC was about 1 USD

By the end of 2016, the price of ETC was about 1.4 USD

By the end of 2017, the price of ETC was about 28 USD

By the end of 2018, the price of ETC was about 5 USD

By the end of 2019, the price of ETC was about 4.5 USD

By the end of 2020, the price of ETC was about 5.7 USD

The highest price of ETC was on 6/5/2021, with an opening price of 101 USD, a closing price of about 141 USD, and at one point during the session, the price was pushed up to 176 USD.

After setting a new peak, the price of ETC began to decline and at one point was only about 35 USD in June

In the following months, the price of ETC fluctuated around 40 – 70 USD.

Entering 2022 – a turbulent year for the global financial market and the cryptocurrency market being the most severely affected, causing ETC’s price to drop sharply. In just over 6 months, the price of ETC dropped by 60%, however, this number is still considered positive compared to many other altcoins which even dropped over 90%.

+ The current price of ETC is: $ 26.17

=> The price trend of ETC coin is influenced by the price of Bitcoin as well as the general cryptocurrency market. There have been times when the price of ETC has increased dramatically, but then there have also been times when it has dropped precipitously, making the risk of investing in ETC coin very high.

Should you invest in Ethereum Classic (ETC)?

No one can answer this question for you; you must weigh the decision yourself. This is because the cryptocurrency market has many risks and ETC coin has quite a few disadvantages such as outdated technology, the risk of hacker attacks, and they will not do anything to help investors in such cases.

However, when looking at the price trend of ETC, we can see that this cryptocurrency has strong fluctuations, and if investors know how to seize the opportunity, the profits can be very high.
If you like day trading, you may consider choosing ETC, but you should not use a lot of capital, only a small portion of the money that you do not need to use.

Another opinion is that if the price of Ethereum is increasingly high, then ETC can be considered a good alternative because these two cryptocurrencies are used in very similar ways.

=> In summary: Ethereum Classic is an early project so its technology is a bit outdated, making it hard to compete with Ethereum as the ecosystem of Ethereum Classic does not have as many Dapps. However, ETC is still among the top 50 coins in market capitalization at present, so it still has a certain position. In general, you can invest in ETC but only with a very small amount of capital because the price volatility of ETC is quite large with high risk.

Where to buy ETC coin, which exchanges are reputable?

Since this digital currency has been on the cryptocurrency market for quite a long time, you will have many options when wanting to invest in ETC coin such as:

Among them, Binance is currently the world’s largest cryptocurrency exchange.

What are the wallets for storing ETC coin?

CONCLUSION:
– Ethereum Classic (ETC) is a project that branched off from Ethereum with the technology being the same as Ethereum before the Hard Fork update, this project was born after a 50 million USD theft by hackers with many controversies.
– ETC has developed quite slowly compared to ETH
– The price of ETC fluctuates quite strongly with high risk
– You can buy and sell ETC coin through many different cryptocurrency exchanges
– According to investor assessments, ETC may increase in price in the long term as cryptocurrencies gradually become accepted, or if the price of ETH is too high, people may look for an alternative currency to invest in with similar operating methods.

Related post:

Through this, you must have understood what ETC coin is and why it was created, right? Hopefully, the information provided by invest286.com will be helpful to everyone, and if you have any opinions about this cryptocurrency, please leave a comment for us to discuss.