A Quick Look at the Basics of Ethereum Classic

Many online traders are well aware of the status that Ethereum has enjoyed over the past few years. In fact, it can be argued that this form of cryptocurrency trading is only overshadowed by Bitcoin.

A Quick Look at the Basics of Ethereum Classic

Many online traders are well aware of the status that Ethereum has enjoyed over the past few years. In fact, it can be argued that this form of cryptocurrency trading is only overshadowed by Bitcoin. Having said this, another lesser-known variant of Ethereum known as Ethereum Classic can represent a worthwhile investment opportunity for those who are able to appreciate its mechanics and advantages. Let us take a quick look at why a growing number of individuals are choosing to buy Ethereum Classic in order to appreciate the big picture.What is Ethereum Classic and How Did it Emerge?Ethereum Classic is similar to the original Ethereum in the fact that it is an open-source P2P platform based upon blockchain software.

However, Ethereum Classic came about as a result of flaws encountered within a decentralised venture capital fund known as DAO. These flaws were exposed and as a result, DAO was hacked in 2016.It is estimated that $50 million dollars were stolen during this attack. This led to a schism within the Ethereum community.Some users wished to return the virtual tokens to their original owners. The main issue with this desire involves the fact that crytocurrency transactions are unable to be edited or deleted by their very nature (and also one of the features which has made cryptocurrency trading in general quite attractive).

A "hard fork" occurred soon after; some code was modified to return the money lost in the hack. However, the main source code remained unchanged. This is now referred to as "Ethereum Classic".What are the Benefits of Ethereum Classic?One of the easiest ways to contrast Ethereum and Ethereum Classic is to use a common analogy. While Ethereum can be thought of as a standard currency such as dollars or pounds, Ethereum Classic represents a commodity such as gold.

While it is always possible to print more currency, there is only a finite supply of gold in the world. In other words, the overall supply of Ethereum Classic is limited.Why is this important? Due to the fact that there are only 230 million tokens, their inherent rarity enables them to represent more valuable assets when compared to Standard Ethereum, Bitcoin and other cryptocurrencies. While some might consider these observations to be somewhat speculative, many investors feel that Ethereum Classic will become more valuable in the long run as a greater number of tokens are mined. Furthermore, it is unlikely that any more of these tokens will be created in the future.Can Traders Hold Both Types of Cryptocurrencies?Another advantage of Ethereum Classic is that it is possible for traders to possess both Ethereum and Ethereum Classic tokens at the same time.

This offers them a decidedly liquid edge, as Classic tokens can represent a long-term asset while normal Ethereum can be used to incur short-term profits. Of course, it is also possible to utilise other forms of cryptocurrency such as Bitcoin in order to stave off the volatility of another. This is one of the best ways to create a more diversified portfolio of cryptocurrencies.Will Ethereum Classic ever enjoy the popularity associated with standard Ethereum? This is difficult to tell due to its limited supply. Still, these alternatives represent an interesting option to consider; particularly for those who might be looking to invest in an additional cryptocurrency that is quite similar to Ethereum.

It is nonetheless wise to perform a fair amount of research in order to make the best decisions when the time is right. Always remember that these digital assets can result in net losses if the correct strategies are not employed.

Ruby Lévesque
Ruby Lévesque

Travel fanatic. Proud social media lover. Extreme tea ninja. Incurable twitter expert. Certified web lover.

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