Experts talked about investing in ETC and assessed the likelihood of miners switching to mining “classic” Ethereum. Based on the information below, you will be able to understand whether ethereum classic is a good investment or not. 

Is ethereum classic a good buy?

Is ethereum classic a good buy? The cryptocurrency Ethereum Classic (ETH) is showing significant growth, having risen by 45% in the last month alone. On July 28, the rate of ETH reached $34, gaining more than 23% in one day. Ethereum Classic is currently ranked 20th in cryptocurrency capitalization at $4.61 billion with a daily trading volume of $5.26 billion.

The ethereum classic chart’s rise began after the announcement that the network would switch to a new operating protocol (Proof-of-Stakes) at the end of September. This transition will mean the end of ETH mining. Due to this event, and because the blockchain uses the same mining algorithm, ETH miners may start switching to ETC.

ETC appeared in 2016 because of the hard fork of the main Ethereum network. The reason for the blockchain branching was the hacking of The DAO investment project and the theft of about 3.6 million Ethereums from it, which amounted to about $60 million at the time (at the rate of July 28, 2022 – $5.76 billion). The developers of the Ethereum Foundation project have done a blockchain split to make up for the losses.

After the hardfork, the old network and cryptocurrency were renamed. The classic cryptocurrency community approved the basic principles of the altcoin, such as keeping the blockchain in its original form and decentralized. The project was first supported by major mining pool MinerGate; then cryptocurrency exchanges began to add the ETC altcoin gradually: Poloniex, Bitfinex, Kraken and others.

The interest of major players

ETC began to appreciate after the announcement that ETH would switch to the Proof-of-Stake (PoS) protocol in the fall. Token will remain the only major blockchain with smart contracts running on classic PoWand the Ethash mining algorithm after the core network moves to a different algorithm. 

Miners will migrate to the ETC network because of the characteristics of the ASIC chips. The migration will theoretically strengthen the security of the network, which has been attacked several times. The developers of the fork are counting on the growing interest of smart contract holders, who will not want to migrate to PoS.

The Ant pool mining pool, affiliated with mining equipment maker Bit main, has invested $10 million in the ecosystem. It also intends to accept ETCs for payment for its products.

Thus, the industry partially moves its capacities to the assets, which will be “pumped”. It won’t be a surprise if in a bull market the price of ETC, supported by corporations, reaches $100+ and goes to historic highs.

For the near term

For holders of large-scale crypto farms, the “classic” PoW algorithm is more profitable than the new PoS to which the mainstream network is migrating. Traders consider in their assessments of the cryptocurrency that there are no plans to migrate to PoS in ETC and that mining in this system will be beneficial for the older people of the market.

There is a chance that investing in Ethereum Classic in the next 4-6 months will be profitable. However, according to Deyev, there is not enough data to analyze a longer period, despite the efforts of the creators of the crypto-monet to maintain it and attract computing power from other projects. 

Ethereum Classic crypto price prediction: Waiting for the transition to PoS

It’s too early to talk about the mass transition of miners, but interest in ETC has clearly appeared. This is shown by the local maximum hash rate of the network.

Ethereum Classic crypto price prediction: now is a “great time” to enter mining profitably, but the demand for equipment at the moment is low, says the expert. According to him, only professional large miners are increasing their capacity, while the prices of video cards and ASIC miners are low.

Such mining has clear advantages over bitcoin mining: the net profit is higher due to lower power costs compared to ASIC equipment, especially during a bear market.