ETH Vs ETC: Which one is worth your money?

ETH Vs ETC: Which one is worth your money?

By MadMaxx | Psycho Crypto | 2 Mar 2020


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Hello guys, and welcome to another in depth review. In this deep dive, I would be looking at Ethereum and one of its hard forks: Ethereum classic. The purpose of this post would be to distinguish between both of them, see where they're similar and where they're different, see their strengths and weaknesses and ultimately decipher the one that is best for your hard earned dollars.

All while keeping the post short and sweet, and below 300 words.

Sound nice?

You bet it is! Let's get started.

So I will be dividing this post into the following segments:

  • What is Ethereum?
  • What is Ethereum classic?
  • What are the differences between both of them?
  • Which one trades better?(based on statistics)
  • Which one is worth your money?

WHAT IS ETHEREUM?

Ethereum is a global computer. Simply put, it is a network that allows for the execution of smart contracts, which are certain programs that are set to go off at specific times. These programs might be something as simple as changing the time, to something as complex as sending different amounts of money to different people at the same time.

The ethereum blockchain is made up a lot of very powerful computers that run these smart contracts for users. These computers aid transactions such as sending and receiving of the native currency of the network: Ether.

In return, they are rewarded with that native currency.

That's Ethereum in a nutshell. I will be reviewing Ethereum as a whole on Saturday, so be sure to follow me if you haven't already, to be the first to know when that drops.

WHAT IS ETHEREUM CLASSIC?

Ethereum classic is a hard fork of ethereum. If you don't know what a hard fork is, check out my very fun and explanatory post aptly titled "What the fork is a hard fork?". About 1025 people loved that post, and I'm sure you will too!

That said, ETC came about as a result of the DAO hack that happened on the Ethereum blockchain. That hack led to the loss of $50 million in users assets, which was no small amount.

ETC came about trying to fix the problems that caused the DAO attack. The creators consisted of a few developers from the Ethereum blockchain, who no longer believed in Ethereum's mantra of "Code is Law".

And that's that about ETC.

WHAT ARE THE DIFFERENCES BETWEEN BOTH OF THEM?

For a fork to happen, it means that something changed about the new cryptocurrency.

So how is ETC different from ETH?

  • ETH has basically an unlimited supply. ETC on the other hand has a pretty intuitive way of reducing its supply. Every 5000000 blocks, the block reward is reduced by 20%, until the block reward completely vanishes and the coin can no longer be created. This number will never exceed 230 million ETC.
  • ETH plans to move over to a PoS system. One of the reasons ETC was created was to avoid this move, and so ETC would not be based on PoS.

WHICH ONE TRADES BETTER?

Obviously that's why you're here. Let's look at the charts for today for both coins, as well as do a little TA(Just a little, I promise!) to ascertain which one is great for short term(1-3 day) trades.

351665157-0fea85a188cd6d31136e62f898e2542c143186bcf6841aadc0f266b948fdc2bb.jpeg

351665157-3c979ed379ec52cb784ff0ef1b1bb762e219e925b464237fb955575fc6dd62b8.jpegThere is an obvious price correlation between the two cryptocurrencies as we can see. But I personally feel that ETC is better for short term traders. Here's why.

  • It has a lower price: Usually, when you're trading coins, you want to look for the ones with lower prices, because small moves in them can lead to some big money for you.(the reverse is also the case). For instance, in the chart above, ETC had a 0.5USD change, that resulted in a big 7% move. ETH had a price change almost equal to the price of ETC and that gave a measly 2% change.
  • It has volume for its price: Just like Ripple and Stellar, ETC has a very low price of just $8. Considering that it can basically be used for all ETH can be used for, that gives it an intrinsic value that it's price will rise once this value is established. It equally has a very large volume for the price which you pay for it, which is a lot considering that the price is very low.

So in my opinion, ETC is better traded.

WHICH ONE IS WORTH YOUR MONEY?

This is a very subjective question, and that all depends on your preference. They both do the same thing, and buying one is as good as buying the other. They're both on the same blockchain, and can both perform smart contracts.

However, if you don't love PoS, or you aren't in support of some of the ideologies of ETH, then ETC is a very viable alternative. It is cheaper, trades better and has unrealised intrinsic value.

Thanks for reading.

Remember: 

For a limited time, get a reward when you download the Trust wallet! You don't need to make any transactions with it, just download and set it up. Do that here and claim your free reward!


MadMaxx
MadMaxx

Shitcoin flipper. Derivatives and options trader. Bitcoin and Ethereum futures and inverse swap contracts. Professional trader. Never financial advice.


Psycho Crypto
Psycho Crypto

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