The cryptocurrency market is on the move. However, the crypto community is mainly eyeing the next Ethereum upgrade, which will move Ethereum from PoW to PoS. Naturally, there are some people who oppose this shift, which triggers them to find other alternatives. Ethereum Classic was among those other alternatives that gained more than 50% in prices since the merge announcement. Why is Ethereum classic up? Is it a good idea to buy ETC? Here’s everything you need to know.
What is Ethereum Classic (ETC)?
As the name suggests, Ethereum classic came to be as a result of certain developers’ disagreements over how the Ethereum blockchain at the time operated. These programmers utilized Ethereum to build a venture capital fund under the name “The DAO (Decentralized Autonomous Organization). By allowing individuals to contribute ETH and guaranteeing them profit sharing as a ROI, this VC raised $100 million. Investors have the authority to decide how to allocate assets in addition to returns. Unfortunately, the fund’s coding included a flaw that allowed for a network breach. Millions of dollars were fraudulently taken out of the system during the breach in the form of ETH.
Before the hackers cashed out on the stolen tokens, investors started to worry and offered engineers a month to come up with a solution. In order to undo the hack and return investors’ money, engineers had to construct a hard fork. Others opposed this option, but Vitalik Buterin and many other significant network investors did. The fact that they believed it would be improper to tamper with a Blockchain’s ledger was one of the main grounds for the rejection. They wanted the network to keep running in spite of the theft because of this. They remained, though, and gave the network the new moniker Ethereum Classic. Most miners, developers, and consumers switched to the forked network, including Vitalik Buterin. The forked network is what we now know as Ethereum today.
Why is Ethereum Classic UP?
Ethereum is about to have a major upgrade in its blockchain. It is basically moving from PoW to PoS. This new consensus mechanism eliminates the need for miners to exist. That’s why most miners would look for other alternatives. Ethereum Classic is one of the closest blockchains to Ethereum, hence miners look at it as their “safe haven”. They all plan to move to Ethereum Classic as it will still operate with a proof of work mechanism.
Additionally, Vitalik Buterin mentioned Ethereum Classic recently at a conference. He said that Ethereum Classic was “a fine blockchain”. People who still want to use it can safely do so. In fact, now that the mining volume would increase tremendously, it would make the Ethereum Classic blockchain much safer.
So to summarize: more miners flocking Ethereum Classic + Vitalik positive reassurances = higher ETC prices.
ETC Price Prediction – Is Ethereum Classic a Good Buy?
If we look at the fundamentals, Ethereum Classic is definitely a good buy. The network will become highly secured thanks to the flock of new miners coming from Ethereum. Many crypto investment firms are also eyeing ETC as they see a good potential future in this ecosystem.
However, if we zoom in and look at the technical side of things, we can see that Ethereum Classic price is due for a correction. After two extended price increases, ETC might correct lower. Looking at figure 2, we can estimate an ETC correction towards the $35 price mark, then towards $30 if the adjustment turns heavy. Afterwards, prices should aim to reach their previous all-time high from this year at around $50.