Ethereum Classic (ETC), which runs on the original Ethereum blockchain, shares the same principles of immutability, decentralization and deflationary economy as Bitcoin (BTC). However, just like Bitcoin (BTC) in early 2012, until recently, Ethereum Classic (ETC) was considered a scam by many in the crypto community. There was no reason for anyone to believe that a practically dead project like Ethereum Classic (ETC) would eventually rise from the ashes and threaten the dominance of Ethereum (ETH) and similar platforms. Recently, morals and principles have attracted a lot of people to Ethereum Classic (ETC) same as Bitcoin (BTC) did back in the day. However, just as with Bitcoin (BTC) this is not the only reason. Just as people turned to Bitcoin (BTC) because they saw problems with quantitative easing by central banks, excessive government control and inflation, people are starting to turn to Ethereum Classic (ETC) in the platform arena as they see problems with other platforms. Ethereum (ETH) is the largest platform coin with even larger problems. First of all, Ethereum (ETH) has no immutability or decentralization, the two basic prerequisites for a blockchain. Back in the day when Ethereum (ETH) forked off the original chain, very few people cared about these issues. They saw a lot of new miners and developers shift to the forked chain (ETH) and so they followed suit. This was followed by a plethora of ICOs held on the forked chain which made it even bigger while the original chain (ETC) was left to die. However, now that Ethereum (ETH) has grown so big that money is not a major concern; people are starting to see the real problems. In the past, many companies have held their ICOs on Ethereum (ETH) but very few of them are willing to actually stay on the Ethereum (ETH) blockchain. The same goes for Dapp developers on the Ethereum (ETH) chain. A lack of immutability and decentralization are serious concerns. Let’s say you make a Dapp on Ethereum (ETH) and a central authority gets to decide what you can and cannot do, or worse they suspend your Dapp for some reason, what then is the point of having a blockchain and how can the apps built on such a blockchain be called Dapps?
Apart from respect for immutability and decentralization, Ethereum Classic (ETC) has a fixed supply just like Bitcoin (BTC) whereas Ethereum (ETH) supply is not known, which introduces another issue of inflation. Most investors today are starting to take these concerns more seriously. Ethereum Classic (ETC)’s recent listing to Coinbase and other major exchanges proved to a lot of people that it is not a scam. The next step was to make them see the value proposition and problems with existing platforms like Ethereum (ETH). At this point, some people will get onboard out of principle but the vast majority will only get involved once they see big gains. Interestingly enough, the stage is set for that as well. Looking at the first chart for ETCUSDShorts, you will see that the number of shorts for Ethereum Classic (ETC) have been on a steady rise since September 2017. Those shorts have now formed a giant rising wedge which is one heartbeat away from breaking to the downside. When that happens, we will see an unprecedented sentiment shift towards Ethereum Classic (ETC). The cryptocurrency has a lot of big events coming up towards the end of the year. One of those events is full IOT (Internet of Things) compatibility by November 30, 2018.
Apart from that, the Coinbase effect has yet to kick in and as the weekly chart for ETC/BTC shows, we have already seen some price manipulation short term to scare off weak hands before the next rally. Ethereum Classic (ETC) share all the principles and core values of Bitcoin (BTC) unlike most platform coins which is why Charles Hoskinson, the founder of Cardano (ADA) recently said in an interview that Ethereum Classic (ETC) is on the same path as Bitcoin (BTC) was back in the day. Given that Ethereum Classic (ETC) is massively undervalued at the moment and the fact that it has one of the most brilliant minds in the cryptocurrency space behind it, it is very likely that Ethereum Classic (ETC) might see the same gains as Bitcoin (BTC) did in its early days. There are three major catalysts that could make this happen a lot sooner than anticipated. The first of these catalysts is miners switching from Ethereum (ETH) to Ethereum Classic (ETC) as Ethereum (ETH) switches to Proof of Stake (PoS). The second catalyst is the Coinbase effect which is yet to factor in. The third effect is full IOT Compatibility which will make Ethereum Classic (ETC) a pioneer in this space. Blockchain is a useful technology but it is no different than what the internet was back in the day. In itself, it is just a technology. The real deal is how you are going to use it to help businesses and day to day lives of people. Ethereum Classic (ETC) seems to have done a really good job at this by thinking beyond the blockchain as it positions itself to become the face of the fourth industrial revolution.