Why is Ethereum Classic not a safe long term investment?
There are many cryptocurrencies on the market, but only a few have become popular and widely accepted. Cryptocurrency transactions are irreversible, which is both a problem and an advantage for banks. Many suspect that until cryptocurrencies solve this problem, the banking system will still dominate. Although there are not many underlying applications, their market capitalization is in the billions of dollars, leading to a trend of social imbalance. In this article, let’s find out why Ethereum Classic is not a safe long-term investment?
The reason why Ethereum Classic is on the brink of collapse
Since the original Ethereum chain was maintained at the July 2016 event, the original chain had difficulty branching into Ethereum Classic and Ethereum New, causing disagreements between community members and developers. . However, Ethereum Classic has been discontinued and certainly this coin does not have a bright future, here are some reasons:
1. The Ethereum Classic development roadmap looks overwhelming as the developers are always hesitating and falling short of goals. This is the first and foremost reason that directly affects the future of Ethereum Classic.
2. This project doesn’t have much support from the Cryptoverse, which dampens its popularity a bit.
3. Another reason why Ethereum Classic was quickly forgotten is because the original Ethereum developers switched from Ethereum Classic to Ethereum. As a result, many new Ethereum network updates will not be available on Ethereum Classic.
4. Ethereum’s steady transition from proof-of-work to proof-of-stake has contributed to pressure on the Ethereum Classic community for not being able to keep up with the growing demands of users.
5. It is a myth that forks often negatively affect the development of cryptocurrencies. The best solution to deadlock is to try swapping the problem instead of hard forking.
6. Even Ethereum Classic hashrate is quite low. This issue does not bode well for the future of Ethereum Classic as it will affect mass adoption.
7. Even those loyal to Ethereum Classic are losing heart. According to experts, this project will die after hundreds of other cryptocurrency projects before it. The people behind the project haven’t made any significant progress for a very long time.
8. Despite the high trading volume, market volatility has a negative impact on the value and future of Ethereum Classic.
9. This blockchain project was not originally intended for large financial markets, but focused on the Internet of Things based on smart contracts.
The good side of Ethereum Classic
Ethereum Classic is also trying to grow, they are trying to implement a sidechain solution instead of building a proof-of-stake consensus mechanism similar to Ethereum. Experts also predict that this is a step to take advantage of the Lightning Network and turn transaction speeds green.
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