Reasons why one should invest in ethereum classic.
Opening thoughts
The cryptocurrencies are mostly used as an investment asset, as it is currently in its developmental stage. Due to it’s in low maturity, the market is highly volatile in nature with almost 10 to 20% of fluctuations observed in a single day itself. The cryptocurrencies, as the name suggest are not currently being used as currencies, as people are aware of the fact that the same amount of currencies they hold, would increase its value in the future. Becoming overnight millionaires is everyone’s main focus, prior to investing in the field. But one must clearly understand that there is also equal amounts of risk that comes along with the perks in the market too. Should you invest in Ethereum Classic? one of such cryptocurrencies based on the ethereum network.
The Ethereum Network
The Ethereum Network is nothing but a decentralized cryptocurrency platform, used mainly for the creation and development of the Decentralised application. Decentralized applications are the applications which run completely on smart contracts where the fund transfer takes place based on the condition of the contract. In other words, it provides an amazing standard template and simplifies the process of the development of the decentralized applications. Hence a number of new cryptocurrency tokens make use of this advantage and run their tokens initially on the Ethereum network itself. A number of other decentralized applications are also extensively making use of the Ethereum network.
Smart Contract
The Smart Contract functionality was bought into the picture by the visionary Vitalik Buterin. Smart contract mainly features in eliminating all third-party intermediaries and enforce any particular transaction in a highly efficient manner. Developing legal agreements is a challenging task. Lots of paperwork, delays, and inevitable brokerage fees is absolutely not affordable but in case of smart contracts all the rules and regulations are included in the form of the program where the real world entities are made to undergo the transactions encoded is a smart contract. It may even behave like an Escrow account.
Ethereum classic – why must one invest in Ethereum classic?
Ethereum Classic is the original Blockchain of the Ethereum community, along with the new blockchain, Ethereum, which was developed after a hard fork was initiated post the DAO attack on the Ethereum network. Major disagreements led to the hard fork where most of the prominent members moved on to the new blockchain but some of them opted for the original blockchain itself. Which with such a negative initiation, there doesn’t seem to be any reason to invest in Ethereum Classic.
3 Rationales to invest in Ethereum Classic.
1. One must realize that the hard fork was not supported by most of the community members but as the members of the decentralized organization went ahead with their decision of the hard fork, this rendered a great dissatisfaction among the miners and the community members. Therefore Ethereum Classic can be considered as a symbol of their stance.
2. The price of the Ethereum Classic is almost one-tenth of to that of the new Ethereum blockchain, but the use case of both the cryptocurrencies is exactly the same. For an instance, they can be used in the decentralized applications or to enforce the Smart Contract. Therefore, whoever switches from Ethereum to Ethereum Classic, would gain 10 times the number of coins approximately. One might be thinking that it’s a whole different coin but remember that, the actual use case behind both the coins is the same and switching to Ethereum Classic, one may gain a number of coins and is worth to invest in Ethereum Classic.
3. Currently, Ethereum Classic is trading around $16.85 and is expected to reach the $56 mark by the end of 2018. Within 5 years down the lane, the experts even predict that the price might reach $171. During the July 2016 split, the Ethereum Classic community was stubborn enough to stick on with their original principles of the immutable blockchain ledger. This principle attracting a lot of investors in the market.
Closing remarks
The cryptocurrency market is filled with ebbs and flows of the economy. Investments are highly subjected to market risk and professional advice is recommended. One must bet only the amount of money they are ok to lose in the market, also the Ethereum Classic is slowly gaining traction. Due to the decentralization of the whole financial sector, the centralized banks along with the governments have to deal with a major blow to their economy. The funding from the institutional investors as well as the development of the project by the creation of relatable smart contracts and would be valuable to invest in Ethereum Classic for a long run.
