I am an investor in Ethereum Classic. I am biased. I want to see it succeed. However, unless you have been buried under a rock, you know that investors in Classic have taken a beating. However, if last night was any indication, Classic has a good chance at success. Yesterday, major exchanges released the funds of the Robin Hood Group and at the same time, the “hacker” of the original DAO was able to access his funds. It caused a panic and ETC tumbled hard. The interesting part, however, is what happened after that. During the Asian market, traders not only swallowed the dump whole, but rallied Classic nearly 22% above it.
In case any of you are missing the point, let me explain what is happening. ETC has a lot going for it and no matter how hard others try to destroy it, the fundamental value of Classic doesn’t change. Classic is significantly undervalued. Classic is already in the top ten in terms of market cap, it has mining, development and investment. Yet, here is something most people overlook- it is traded on a significant number of the big exchanges. For those new to alt coins, let me tell you, that is a major accomplishment and it was simply handed to Classic. Classic doesn’t need to go through the agony of convincing exchanges to carry them. Nor did Classic have to invest in development to get the coin tradable. In alt coins this sort of exposure is priceless.
Dump all you like, Gentlemen. You can’t change the basic fundamental equation and I haven’t yet accounted for all the other elements Classic has going for it. For one thing ,Classic has captured the interest of more than a few otherwise loyal Bitcoiners. To sum up, Bitcoin and Classic have had their first date. It makes sense, they both have a lot of similarities and have suffered the same struggles. They can relate to each other. So there is talk of another date soon. If their is a third, then fans of “The Big Bang Theory” know what happens next.
Sure they both have baggage. Bitcoin has scaling problems and Classic’s solidity is buggy, but when has there ever been a perfect marriage? It is nothing that can’t be fixed. Could Classic become the silver to Bitcoin’s gold? Might they both be able to solve their problems together instead of apart? Most will throw a fit at the suggestion, I can only say wait and see.
For now, Classic has some growing up to do. For one thing, Classic is mired in a brutal divorce. Her domineering (some might characterize it as abusive) husband has made some serious errors and literally dumped all his problems on her. Yet, I am confidant she can deal with them far better than her ex.
As for Ethereum, he still has a lot going for him and I am not adverse to seeing Ethereum get a second chance. In fact, Ethereum may have proven itself to the folks over at legacy central. The bailout shows that Ethereum is a team player and now Big Banks and Wall Street can dip their toes into the blockchain swimming pool.
Ethereum will be coat and tie. Martinis with lunch. I am all for that. Classic will be garage office innovation, the kind of thing that made Jobs and Bezos. It will be Satoshi Nakamoto, blowing the dust off an old book on monetary theory and changing the world.
Classic is a blank canvas ready for the artist to create a masterpiece. Remember Developers, we investors are giving you a shot at a revolution- don’t mess it up!
Disclamer: The Author owns ETC in his portfolio. Nothing he writes should be considered investment or legal advice.