ETC vs Ethereum: What is a Hard Fork? [Investment Comparison]
For many entering the crypto market in 2019, there will be some confusion over some of the most successful and popular cryptocurrencies on the market. Why is there a Bitcoin (BTC) and a Bitcoin Cash (BCH)… and a Bitcoin SV (BSV)? Why is there Ethereum (ETH) and Ethereum Classic (ETC)?
Well, the answer to most of these questions can be boiled down to two words: hard fork. In software development, the term “fork” is used to describe a situation where a group of developers use the existing software code as a base for an entirely new piece of software. As it relates to blockchain, this is usually when a new version of the software is released, and then users must update their software or their nodes will no longer be accepted.
In 2016, an important vote was cast as to whether or not Ethereum should hard fork in order to solve some security issues. This was in direct response to a breach where $50 million USD worth of Ethereum was stolen and moved to a new account. This hard fork would have returned the stolen ETH to its owners. While the majority were in favor, a vocal minority were not. This minority was enraged at the thought that the Ethereum blockchain wouldn’t be immutable, and that this hard fork would effectively undermine the entire purpose of blockchain technology and put some duct tape on an “oopsie.” Immutability was very important to these people, so they decided to reject this vote and break away from Ethereum.
So how did that work out for them?
Well, first thing’s first, they did succeed in their goals. They survived this hard fork and are still around today. Ethereum Classic is currently the 20th largest cryptocurrency in market cap, and they have a dedicated group of supporters that believe in Ethereum Classic.
Unfortunately, that’s just about where the good news ends.
Another way of looking at these facts is that Ethereum is more than 36x larger than Ethereum Classic, and the only thing keeping ETC hanging on is a small pool of dedicated developers that don’t seem to be growing in numbers or particularly prolific. Ethereum’s development community is undoubtedly the largest in the blockchain world, and is so by orders of magnitude.
Ethereum Classic believers are still saying that #ClassicIsComing, but realistically we think the better hashtag would be #ClassicAintComing. The long-term future of ETC in the cryptocurrency market is likely as a somewhat long forgotten coin that has very little application, not unlike Dogecoin and the like.
While Ethereum Classic succeeding would have been a really nice example of the masses sticking it to those in power, how it really came off was a group of bitter traditionalists trying to write an alternate history.
Which is the better investment?
In case it wasn’t clear from the rest of this article, we firmly believe that Ethereum, at this point in time and likely all points in the future, is a better investment than Ethereum Classic. There was certainly a moment where Ethereum Classic, with the right backing and right external forces, could have overtaken Ethereum, but that moment appears to be far in the rear view mirror, and Ethereum Classic is left as a group of hopeful individuals who are convinced of Ethereum Classic’s superiority and are unwavering in their support.
Ethereum is currently being challenged by several other blockchain projects that aim to be the go-to platform for blockchain development, but as it currently stands they have not truly had a scare. While it is certainly possible, even probable, that Ethereum will be surpassed one day in the somewhat distant future, it is extremely unlikely that it will be surpassed by Ethereum Classic.
Of course, cryptocurrency investment is always a bit of a guessing game. The market is still volatile and even the safest of bets can turn sour if the market hits a downturn. There are several ways of making these investments work better for you. The best of these is RoninAi, a powerful and dynamic artificial intelligence that uses machine learning to predict the market’s future movements with incredible accuracy. In the past, it has predicted major upswings, major downturns, and even market manipulation, allowing you to maximize your profits in upmarkets and avoid losses in downmarkets.
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