Ethereum and Ethereum Classic are two of the most promising projects in cryptocurrency. However, both projects have major challenges ahead, and some claim that one or both projects are headed for disaster. We think that’s a far-fetched perspective, but we agree that there are arguments for one or the other being the superior investment. We’ll lay out both arguments below so you can invest in Ethereum (ETH) or buy Ethereum Classic (ETC), depending on what seems best for you.
Not sure the difference between the two?
The Pros and Cons of Investing in Ethereum ETH
Ethereum is trading at just over $200, down from its remarkable high of $1,500+ less than one year ago. Ethereum’s price misery is due to several factors:
- All crypto prices are down in 2018.
- Ethereum needs to make some major technology updates in order to be fast, affordable, and relevant.
- Leader Vitalik Buterin has voiced concerns about Ethereum’s immediate future prospects.
Nonetheless, there are those who believe that the worst is behind Ethereum. A recent Ethereum sharding breakthrough proves that network relief could yet be on the horizon. Furthermore, Vitalik’s misery notwithstanding, the Ethereum blockchain remains the most used smart-contracts network in the world.
Ethereum’s price may not recover tomorrow, but ETH will likely bounce back in a big way in the event of a crypto market recovery. Long term, Ethereum’s prospects are good. With a development team peerless in the blockchain space, if anyone is to achieve global scale throughput, Ethereum is at the top of the list. Today’s Ethereum prices may look like an unimaginable discount when compared to prices a year from today.
The Pros and Cons of Investing in Ethereum Classic
Ethereum Classic forked away from Ethereum after the parent blockchain had to change its principles based on a major network error. “Code is law” is the mantra of ETC. And while some have found this philosophy overly idealistic, Ethereum Classic has built its community, increased development, and recently earned itself a coveted spot for sale on the all-important Coinbase exchange.
Coinbase is the industry’s most significant gatekeeper. People who buy Bitcoin for the first time tend to do so on Coinbase. The five cryptocurrencies listed on Coinbase therefore represent the “most important” digital coins, at least in the eyes of Coinbase’s newest users. Inclusion on the platform all but guarantees ETC ongoing relevance for the foreseeable future.
Which to Invest in for 2019?
When questioning whether to invest in ETH or ETC, the obvious question is: Why not both? Both platforms are high-quality smart contract technologies. Both have committed development and high visibility. Both are going to be around for a long time to come, no matter what. But what if you want to buy only one or the other?
You might buy Ethereum Classic because it is cheaper, relative to its circulating supply, than Ethereum. A new investor could get a much larger position in ETC than in ETH, startup capital being equal.
On the other hand, you might believe that Ethereum’s industry head start will make it a shoo-in for long term success. Ethereum’s vision is immense. If it attains even 25% of its goals, it will change industries around the world.
We can’t tell you what to buy, but we do think that if you’re weighing ETC vs. ETH, you’re asking the right questions!
(This information should not be considered investment advice)
Featured image source: Flickr