Ethereum Classic vs Ethereum: Which One Makes More Sense to Buy?
Both Ethereum Classic (ETC) and Ethereum (ETH) offer blockchain networks where developers can build decentralized applications (dApps) and support smart contract functionality. However, they differ in terms of their origins, features, and potential benefits. In this article, we will explore the differences, merits, and drawbacks of both Ethereum Classic and Ethereum. By the end, you will be clearer on which one makes more sense to invest in.
Understanding Ethereum and Ethereum Classic
Ethereum and Ethereum Classic are closely related but developed separately. Ethereum Classic emerged as a result of a
hard fork of Ethereum in 2016 following a DAO network hack. At that time, a portion of the Ethereum community wanted to reverse the hack, while others disagreed and decided to split into two different chains: Ethereum (the one that reversed the hack) and Ethereum Classic (the one that stayed true to the original blockchain). Ethereum, on the other hand, has since become a major player in the blockchain space, with continuous improvements and updates.
Pros and Cons of Ethereum Classic
Pros of Ethereum Classic
Immutability: Ethereum Classic upholds the philosophy of the immutability of the blockchain, meaning that once a transaction has been recorded, it cannot be altered. Recent Backing: Ethereum Classic recently has gained support from several prominent players in the blockchain industry, which could bolster its credibility and future prospects.Cons of Ethereum Classic
While Ethereum Classic offers some unique advantages, it also has certain limitations:
Market Growth: Ethereum has grown exponentially, with a significant number of early investors and influential figures backing it. DAO Hack Resolution: Ethereum reversed the DAO hack and returned the stolen funds to their rightful owners, the DAO token holders. Constant Updates: Ethereum is continually updated with the latest changes and improvements, reflecting the dynamic nature of the project. Higher Hash-Rate: Ethereum has a higher hash-rate compared to Ethereum Classic, indicating greater security and decentralization. Potential for Collaboration: The Ethereum community has shown great collaboration in solving problems, such as the reversal of the DAO hack. Backed by Major Corporations: Ethereum is supported by the Enterprise Ethereum Alliance (EEA), a powerful group of over 200 corporations, like Microsoft, JP Morgan, Toyota, ING, and more.Key Concept Comparison
A helpful analogy to understand the difference between Ethereum Classic and Ethereum is to think of Ethereum Classic as “Gold” and Ethereum as “Dollars”.
Ethereum Classic: Similar to Gold
Supply Restriction: The supply of Ethereum Classic is fixed at 230 million tokens, which makes each token a valuable store of value due to its scarcity. Potential for Speculation: Owning Ethereum Classic can be seen as a form of speculation, given the successful track record of its leadership team in previous cryptocurrency ventures.Ethereum: Similar to Dollars
No Supply Restriction: Ethereum does not have a set supply limit, allowing its value to maximize as the ecosystem grows. Decentralized Value Exchange: Ether, the native token of Ethereum, functions more as a medium of exchange rather than a store of value, facilitating transactions within the ecosystem.My Personal Perspective
Personally, I own both Ethereum Classic and Ethereum. I view Ethereum Classic more as a speculative investment due to the track record of its leadership team, which increases the likelihood of success for Ethereum Classic compared to other speculative coins in my portfolio.
I believe Ethereum, on the other hand, should be a core holding for anyone interested in cryptocurrencies. With its high market impact and potential to become the world's leading cryptocurrency as its ecosystem continues to grow.
By considering the pros and cons of both Ethereum Classic and Ethereum, you can make an informed decision about which one to buy or hold. Whether you are drawn to the immutability of Ethereum Classic or the dynamic growth and industrial backing of Ethereum, either choice can be a part of a well-rounded cryptocurrency portfolio.