After The Merge: Waiting for Ethereum Classic’s Price to Grow

The cryptocurrency known as Ethereum Classic (ETC), which was formerly widely used but has been mostly forgotten in recent years, has recently demonstrated astonishing growth. The value of the item has climbed by more than 100 percent during the course of the previous month.

After the activation of The Merge, many members of the community are curious as to whether or not miners would switch to Ethereum Classic. If this is the case, how will this affect the prices of cryptocurrencies, given that the hashrate and complexity of a cryptocurrency generally correlate with price?

Characteristics of the Ethereum Classic Platform

In June 2016, immediately following the failure of the infamous The DAO project, Ethereum Classic was introduced. This cryptocurrency is a controversial spin-off of an Ethereum hard fork that was designed to make it possible for investors to retrieve their funds.

After then, many people referred to the project as “stillborn,” but it turned out that this was not at all the case. For a considerable amount of time, cryptocurrency has maintained an average market capitalisation. Litecoin, Monero, and TRON, along with a number of other well-known projects, are currently its opponents in the ratings.

The “uncompromising Ether” that existed after the hard fork was essentially identical to the fork itself. On the other hand, as time progressed, the disparities between the projects became increasingly obvious.

The creators of Ethereum Classic developed a monetary policy in March 2017 that was fairly analogous to Bitcoin’s. It was presumed that there would be a constant supply of coins and a decreasing rate of issuance.

When compared to the second cryptocurrency, this represented a huge difference in terms of capitalisation. The latter was distinguished by monetary flexibility, which contributed to an atmosphere of unpredictability.

There will only ever be a total of 210.7 million Ethereum Classic tokens available for purchase. Each time 5 million blocks are mined, miner incentives are reduced.

The projects are differentiated primarily by the degree to which the “original air” adheres to the Proof-of-Work algorithm. This is the most significant distinction. Developers working on the Ethereum platform, on the other hand, have been investigating the possibilities of PoS since 2014.

Community Opinions

The continuous increase in the price of Ethereum Classic is explained by journalist Colin Wu as the faith of investors in the possibility of the “original ether” to gain a major hashrate and part of the user base of the ecosystem of the second largest cryptocurrency by capitalization.

In addition to this, Wu underlined that Ethereum Classic enjoys the support of industry titans such as the Digital Currency Group (DCG). When measured in terms of total assets, the Ethereum Classic Trust fund is the third largest inside the DCG division known as Grayscale Investments.

The journalist was also concerned about the potential for immediate increases in the risk of 51% attacks should miners switch over to Ethereum Classic. This leads to the development of a great number of possible branches.

In terms of attracting hashrate, users, capital, decentralized applications (dapps), and “enthusiastic organizers like Sam Bankman-Fried,” Ethereum Classic is currently the best alternative to Ethereum, according to Wu.

Vitalik Buterin, the founder of Ethereum, has remarked that ETC is a “really good chain” for those who advocate for PoW.

There are also some other really fascinating processes going on right now. Chandler Goh, a Chinese miner who is a fan of Ethereum Classic and is currently in the process of recruiting a group of developers to support the Ethereum fork on the PoW method following The Merge is one example.

The Bottom Line

The switch from PoW to PoS in Ethereum is getting very close to being completed. As the time for activating The Merge draws near, the debate becomes increasingly heated.

A significant number of miners are behind Ethereum Classic. There are certain people who are in favor of backing the PoW-based ETH1 fork. One of these people is the famed Chandler Goh. The so-called “Luddites” of the cryptocurrency world are easy to understand for the following reason: after the most significant upgrade in the history of Ethereum, billions of dollars’ worth of equipment needs to be installed somewhere.

It is probable that the resurgence of interest in Ethereum Classic will give fuel to the increase of the hashrate as well as the development of the ecosystem. The latter frequently corresponds with price and makes cryptocurrencies more resistant to attacks that involve a majority stake.