Want Ethereum at a Discount? Then You'll Love Ethereum Classic!
If you missed the rise of Bitcoin and major altcoin assets, you're not alone. Definitely millions, if not billions of people across the world are regretting not jumping on board earlier.
However, I have wonderful news if you happen to belong in this category!
Many of you who know Bitcoin will have surely heard of Ethereum (ETH), the number-two ranked cryptocurrency by market capitalization. But at roughly $1,200, Ethereum is also sharply priced, and out of the reach for many investors.
On the other hand, at a little over $30, Ethereum Classic (ETC) represents a tremendous discount to the higher-priced Ethereum.
Why Ethereum Classic?
Explaining the backstory of Ethereum Classic is beyond the scope of this post. In a nutshell, Ethereum Classic is the original Ethereum, and the more popular Ethereum with which you aware is the hardforked version.
Aside from the "brand association," what makes Ethereum Classic a strong buy is that it shares an extremely strong statistical correlation with Ethereum...92.8% since late-July of 2016.
Essentially, wherever Ethereum goes, so too does Ethereum Classic. So if you have bullish sentiment towards ETH -- and many prominent analysts do -- then ETC will likely follow suit.
But don't all cryptocurrency assets share a strong correlation with each other?
Actually, you'll be surprised that this is not the case. If you were to take the correlation between Bitcoin and Ethereum since the year-to-date, you'll note an extremely weak correlation of 10%.
In fact, at such a low level, you can't even call this relationship a correlation.
However, over the same time frame, Ethereum and Ethereum Classic share a 56% correlation. Yes, this is notably weaker than the longer-term 93%, but the correlation magnitude changed from extremely strong to strong.
For the comparison between Bitcoin and ETH, the correlation magnitude dropped from extremely strong to non-existent!
Good contribution friend
That's right, a vote of yours would be very rewarding for me
Do you think ETC will go where ETH is now?
I was not aware of this, but good to know. There are so many cryptocurrencies out there it's hard to know the background on each of them. I just read an article about Kodak having there own crypto coin to be starting soon. It will be geared toward the photography professional. It will be interesting to see if that turns into something popular or not...
I also invested in etc. It is in fact the healthy part of eth that was created to block the accounts of eth after a hacker found a entrance in eth’s blockchain. I totally agree your vision. A good investment for sure!