Ethereum vs Ethereum Classic: Which is the better investment?

New altcoins are introduced every so often and some of them are hard forks of already existing crypto. When this happens, the new version frequently aims to compete with the original for who gets to be the better network. This is what happened with Ethereum (ETH) and Ethereum Classic (ETC).

In 2022, ETH dominates the market as the second-most valuable cryptocurrency in the world after Bitcoin (BTC). Although it has surpassed its hard fork competition, the ETC is still among the top earning investments in recent years. They have their different uses while also having similarities that let some traders use both. 

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What are Ethereum and Ethereum Classic?

There is now a large difference between Ethereum and Ethereum Classic but the two crypto were once a single entity. It all began when Ethereum was developed, founded, and released in 2015. At the time, most altcoins aimed to compete with Bitcoin for being the most valuable store of value and mode of payment using blockchain technology. 

Ethereum was conceived by Dr Vitalik Buterin and developed together with co-founders Dr Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin. The idea was to use blockchain technology to build a platform for applications and programs. Its inspiration was if the technology can decentralise money like Bitcoin, then it can also give that autonomy to contracts. 

An attack at an Ethereum smart contract in 2016 stole money from investors and the community had a philosophical split over the future of the network. One side is in favour of rolling back Ethereum to refund the investor’s losses while the other enforces ‘code is law’ where the investors accept the losses and move on.

What is now known as Ethereum is a result of the role back favouring the investor’s bailout fund and it has now undergone multiple updates further strengthening the network. Those that supported ‘code is law’ split Ethereum into a copy of its original self known as the Ethereum Classic still running on the same algorithm. 

What are the key differences between ETH and ETC?

Comparing ETH vs ETC is a lot simpler in the present than it was when the split originally happened. Changes were implemented on the Ethereum ecosystem while Ethereum Classic remained the same albeit with optimisation upgrades through the years. The following factors are considered as the biggest differences between the two crypto:

ETH has a more modern framework

Ethereum, under Dr Vitalik’s teams’ decisions, has implemented new sets of rules on how the network’s maintainers are paid to process payments. They have also introduced a move from proof-of-work (PoW) to proof-of-stake (PoS) for more efficient energy consumption. The new framework is also built to better support decentralised apps (dapps) and tools to allow its network to interact with other blockchain. 

Ethereum Classic, on the other hand, retains the PoS system in pursuit of maximalism. This means the ETC community develops the blockchain to use its native coin only while Ethereum can host multiple kinds of digital assets called ERC-20 tokens. 

ETH isn’t capped while ETC has a limit

The Ethereum Classic cryptocurrency is capped at 210,700,000 ETC maximum. More than half of it has already been minted and this limit ensures its local currency is secured from inflation. The ETH cryptocurrency, on the other hand, has no limits so there can be an endless supply of crypto that can circulate. Ethereum occasionally burns uncirculated ETH to combat inflation. 

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What are ETH and ETC used for?

Choosing to invest between ETH and ETH Classic can be simplified based on what you wish to do with the asset. Both are developed for the future of decentralised finance (DeFi) but in different ways. Ethereum Classic aims to establish a network where users follow the code as the law to promote a true autonomous system. That means the code is law and ownership is respected based only on assets’ transaction history. 

Ethereum is a more popular investment because of its effort towards interactivity. There are multiple blockchains existing and each of them is designed for specific purposes. Today, the Ethereum network is the foundation of hundreds of blockchains, each with their own crypto called ‘ERC-20 tokens’. Investors who believe that interaction between growing chains is the key to making blockchain technology a new norm for various industries.

Which is the better investment?

Ethereum is the better investment of the two currencies. The difference between ETH and ETC is vast and you are better off placing your money on whichever has the bigger community, value, and potential for innovation.

Which side has the bigger community?

Ethereum undoubtedly has a bigger community of backers than Ethereum Classic. This is largely thanks to all of the fun apps and new industries made possible by a network designed to be the building foundation for other projects. ETH is also more widely accepted among online services, including casinos like Gamdom. You will find ETC to be harder but if you found a community where it can circulate, then it can be a good investment as well. 

Which currency has a higher value?

There is a huge difference between ETC vs ETH price in any market. ETC is only worth $30-$40 on daily average although it has a $4.9 billion market capitalization to ensure its price stability. ETH, meanwhile, is the second most valuable crypto with a price above $1,400 daily average. It also comes with a comforting $196.9 billion market cap, making it one of the most secure crypto ever. 

Which blockchain is open to innovation?

Ethereum Classic wishes to continue how the original blockchain operates when it was introduced. This means there won’t be big overhauls to make the network change to support innovation that is now present in Ethereum. Thus, it’s much better to follow the blockchain under the development of Dr Vitalik and his team.

ETH is the better crypto and you can win it at Gamdom

ETH is the far superior crypto to ETC as an investment. It also has more companies accepting it as payment, giving you plenty of options to use any amount you earn or hodl. ETH is also supported by online gambling sites like Gamdom, giving you opportunities to win them by playing games like slots, cards, or dice. Don’t forget to opt in a bonus for more chances of winning.

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Words by: Clarence Clarke