Home Finance News Ethereum Classic (ETC) Has Been Pumping Improved Investor Trust

Ethereum Classic (ETC) Has Been Pumping Improved Investor Trust

Ethereum Classic ETC Pumping

On May 06, 2021, Ethereum Classic (ETC) was trending at $112.45 – the US dollar price for Ethereum Classic.  There was no movement in the price of ETC for really quite a long time. It was not really going up because, compared to tokens like BTC, it has remained pretty stagnant.

There are reasons for why the price has remained stagnant. Primarily, there were a series of 51% attacks that caused a whole bunch of issues.  Now, there was one that happened very recently in August 2020.  There was also one 51% attack that happened in 2019 as well.  These things that happened definitely shake the investors because, they don’t want to hold this much. Also just too general if you are having security issues, it makes it difficult for exchanges and people to move all their currencies through exchanges or sell it off.

So, it makes it really hard for the price movement to adjust with the rest of the market.  So, it is really not surprising that it really stayed here without price progress.

For those who do not know, a 51% attack is when someone takes over 51% of the hash rate and manipulates the blockchain to write their own transactions basically.  Depending on how far they get on the 51% attack, it will determine how detrimental it is to the chain.  So, it really depends there, but all you really need to understand is that because of the lower hash rate in the network than Ethereum, it means the security is lower.

With EIP-1559, there were security concerns. If the profitability of Ethereum dropped enough that miners went ahead to move off a bit. It would reduce the amount of hash power on the network, creating a security concern and a possibility for 51% attacks.

Ethereum Classic (ETC) is a perfect example of a coin that does not make as much profit for miners, reducing the Hashrate and increasing 51% of attack attempts. Therefore, when people bring up concerns regarding EIP-1559 to security, an elementary and foundational level security concern is presented.

Right now, there has been a pump recently. You can mine ETH and ETC on a Graphics card with 4 GB of video memory, some changes that have been made also contribute to increased security. As Ethereum kicked off all the 4 GB cards, they are now used in mining ETC and are making profits. Thus there is increased security and the trust in the platform has improved. This eventually leads to an increase in price.  Thus, miners apparently do matter.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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