Home / Crypto Currency / Ethereum Classic – A Sleeping Giant

Ethereum Classic – A Sleeping Giant

Ethereum Classic (ETC), a fork of Ethereum (ETH), has been overlooked for a long time since most eyes were focused on the main Ethereum blockchain. However, this might come to an end quite soon as the number of ETH transactions are rising sharply and the network is starting to have difficulties to process them. As a result, the transaction fees are already spiking over $1. If this trend continues, the Ethereum network might reach a critical point before ‘Plasma’, a new technology that should massively increase the network throughput, is implemented.

Disclosure: This is a Sponsored Article

Since Ethereum Classic provides the same functionality, it is very easy to switch from ETH to ETC if such an overload happens. This would lead to a huge transfer of capital from Ethereum to Ethereum Classic. Here we can take a look at Bitcoin Cash (BCH) as an analogous example. Since Bitcoin failed to implement the SegWit2x hard fork, hundreds of thousands of unconfirmed transactions started to accumulate in the network and transaction fees jumped to tens of dollars. This made Bitcoin Cash with 8MB blocks to be seen as a viable alternative with the same functionality, but much faster and with lower fees. As a result, its price peaked in November 2017 to more than 0.4 BTC in the BTC/BCH market. At the time of writing, the BCH price is around 0.16 BTC.

Although the analogy between ETC and BCH is clear, Ethereum Classic seems to be somehow forgotten and the exchange rate on the ETC / ETH market is as low as 0.032 ETH / ETC at the time of writing. Compared to BCH vs. BTC, the ratio is about 5 times lower.

Predicting something in the crypto world is always uncertain. But if Ethereum starts having problems with the transaction capacity, which is quite likely to happen in the following weeks, there are high odds that Ethereum Classic will gain big profits out of ETH problems.

Read more

Check Also

Winklevoss’ Gemini Crypto Exchange Exploring The Lucrative UK Market

While it may not compete with Binance as the largest exchanges in the world, Gemini crypto exchange is certainly among the most renowned. Founded and led by Tyler and Cameron Winklevoss, the exchange has recently had its stablecoin approved and now, it’s eyeing the UK crypto market. According to sources familiar with the matter, Gemini has already hired consultants to advise on the move to the U.K. With London being the European financial capital, the move will give Gemini a great boost in its global expansion especially in the wake of aggressive European expansion by some of the largest crypto exchanges. Targeting The U.K Market Gemini Trust Company has already hired consultants to advise on its entry into the U.K market, the Financial Times reported today, September 24. Citing two sources familiar with the process, FT reported that the exchange, which was founded in 2014, intends to set up shop in the U.K as it seeks to get its piece of the European market. According to the sources, Gemini is also close to filing an application with the U.K financial markets regulators. In the U.K, the Financial Conduct Authority (FCA) has been the most involved in the crypto sector despite lacking the full legal mandate to properly police the industry. In moving to the U.K, Gemini will be competing with San Francisco-based giant Coinbase which has continued to stamp its authority in the European markets with several key moves. Just three weeks ago, Coinbase announced that it had launched support for four new British Pound-altcoin trading pairs. The new trading pairs are meant to consolidate its position as one of the most convenient platforms to purchase crypto with fiat in the U.K. Coinbase also announced last month that it would integrate GBP support into its platform, giving its clients the ability to make same-day deposits and withdrawals. Coinbase has also applied for and received an e-money license from the FCA for its fiat operations as well as partnered with Barclays bank to facilitate easier payment to U.K clients. The U.K crypto market has been largely loosely regulated, with the FCA being the only organization that has made steps to enforce order in the industry. However, this could all be changing soon with U.K MPs urging the government to stamp its authority in the sector to protect investors from fraud and to prevent money laundering. In a report submitted to parliament last week, the MPs urged the FCA to take the lead in regulating the industry “as a matter of urgency.” While most countries have sought to formulate new laws to encompass the new asset class, the MPs advised against it, stating that “bringing crypto-assets into the scope of existing regulation, rather than creating a new framework specifically for the assets, would be the quickest way of doing this.” The report further urged the government to crack down on crypto exchanges in line with new EU anti-money laundering regulations and impose greater KYC requirements. Gemini’s move into the U.K will give it a big boost and could push its daily traded volume significantly higher from the 61st position it currently holds in global rankings. The post Winklevoss’ Gemini Crypto Exchange Exploring The Lucrative UK Market appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.