For general questions, please read our F.A.Q.
Disclaimer: Cryptomover is not a licensed financial advisor. The information presented in this piece is an opinion, and is not purported to be fact. Cryptocurrency is a volatile virtual commodity and can move quickly in any direction. Cryptomover is not responsible for any loss incurred by following this advice.


8.ETHEREUM CLASSIC (Published: 20th Jun, 2017)

Ethereum Classic was split from Ethereum in June 2016 after the attack towards DAO, a new Ethereum crowd fund. Long story short, a hard fork was implemented to reverse all DAO tokens into ethers to investors and this act was highly controversial. As a result, a group of people opposed the fork and tried to stay on the original blockchain. Since then, from block 1,920,000, the new blockchain with the hard fork became Ethereum, while the original chain was named Ethereum Classic.
While these two blockchains shared the same past blocks and similar features, Ethereum Classic has a strong vision of freedom from censorship, fraud or third party interference and claims that it will never change the history of ledgers for any reasons.

In May 2017, the Ethereum Classic community released a statement for a proposed monetary policy about deploying a limit of 230 million on the ETC tokens, with a reducing block reward for about 20% every few years. Ethereum Classic's anonymous project coordinator, Arvicco, explained that unlike the unlimited token inflation of Ethereum, this policy can be the foundation of all future positive developments.
On the other hand, IOHK, an active company in the community, is supporting the development with seven full-time developers on the subject of Scala implementation. Instead of the Proof of Stake algorithm proposed by Ethereum, they are planning to implement a hybrid between the Proof of Work and Proof of Stake algorithm, with the beta version expecting to be released this summer.

After all, other than holding on a different ideology, Ethereum Classic is actually trying to develop distinctive features from Ethereum. However, it still remains debatable whether which one from the family is better until both of their updates have been implemented. In addition, at the time being most projects are still being developed on Ethereum, implying that the difference in only the ideology is not enough to move the developers.  Hence, the adoption rate of Ethereum Classic remains uncertain.
Looking at the chart of ETC, the price fell off after the initial passion about immutability, but has risen again due to the announcement about the future developments. Due to the fact that both ETH and ETC are expected to released updates within this year and that failure of one side would possibly cause a shift to the other side, I recommend buying both ETH and ETC to hedge against each other.

Right now Ethereum Classic is not offering enough to attract investors and developers from Ethereum. The updates in this summer might bring some changes, but they will still need to keep adding new features in order to be distinguished from Ethereum. A lot of works have to be done to keep up with the competitively, and hence the chance of them failing is actually greater than that of Ethereum due to having a smaller development team.

© 2018-2019