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Ethereum (ETH) has seen a major jump this week, after its price rose by more than 220% during a 24-hour period. The price spike comes shortly after the launch of the Ethereum Classic Investment Trust (ETC). The trust allows investors to invest in the classic Ether token directly, with the goal of bringing more transparency to the market and attracting institutional investors. The fund is run by Grayscale Investments, which is the same company that also runs the Bitcoin Investment Trust (GBTC). (The price of that trust also rose sharply last week, after the fund received a ‘no-action’ letter from the SEC.)

Ethereum Classic, the original version of the Ethereum blockchain, rose 225% this week, gaining $2 billion in market cap in less than a week. The price rose from $8.50 to over $30 as the digital currency entered the top ten market cap cryptocurrencies.  Korea became the largest Ethereum Classic exchange market, with Bithumb accounting for over 50% of Ethereum Classic’s Korean trading volume. As Ethereum Classic’s popularity and price continues to grow, the question remains: why is Ethereum Classic gaining traction? This will be analyzed in the following article.

Ethereum Classic, a seemingly forgotten cryptocurrency, caught the attention of many this week when its price suddenly skyrocketed, but there could be a few reasons for that. Elsewhere, bitcoin cash and other bitcoin-based forks spent the week in the green, as did dogecoin, whose price got a boost from news of Elon Musk’s appearance in the hit sitcom SNL on the 8th. May Rose.

Ethereum Classic starts this week

Ethereum Classic, a related fork of Ethereum, saw its price rise more than 200% this week, becoming the cryptocurrency that led the bull market. Ethereum classic (ETC) started the week at $36, slowly crept to $160 on Thursday, and then underwent a correction that brought the price to $118 at the time of this writing. But what are the reasons that led to this situation?

Ethereum Classic was not the most reliable crypto-currency. Last year alone, the chain suffered several 51% attacks that compromised reliability and set the chain back by several thousand blocks, as the hash rate then declined. This has tarnished the status of the currency, and exchanges now require thousands of confirmations just to confirm a deposit. Users of Kraken, for example, have to wait almost a week (40,000 confirmations) before the deposit takes effect.

Therefore, it seems contradictory that it is booming now. However, this could be due to its big brother Ethereum. Ethereum has been planning to change its consensus algorithm for Share Proof for a while now, and it looks like that change is now even closer. However, the large mass of miners currently securing the Ethereum network will need to migrate to other networks to survive, and the market, perhaps anticipating this move, is betting on Ethereum Classic in the future.

Dogecoin and Bitcoin Cash also rose

Dogecoin also continued its one-dollar movement this week, with momentum supplied by its real progenitor, Elon Musk, who was one of the meme currency’s major promoters. Dogecoin jumped 124% this week to $0.71 per unit, and owed a big jump to Musk’s expectation to host an episode of Saturday Night Live. Fans of the cryptocurrency, which has gained a lot of notoriety among influencers and people not normally associated with the cryptocurrency world, expect it to grow after Musk talked about it on a comedy show in front of millions of viewers.

Bitcoin Cash was also one of the highlights of the week, with prices rising more than 50%. The price of Bitcoin Cash reached over $1,500 and corrected to end the week around $1,350. Bitcoin Cash is a week away from an update that will bring some improvements to the blockchain. The update introduces a new update schedule designed to restore confidence and predictability after two controversial hard forks tarnished the currency’s image. Other forks in the Bitcoin network, such as Bitcoin Gold (BTG) and Bitcoin Diamond (BCD) and Bitcoinsv (BSV), have also experienced strong growth.

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Frequently Asked Questions

Is ethereum Classic a good investment 2020?

When the Ethereum hard fork occurred in 2016, it created two separate coins, Ethereum and Ethereum Classic. Ethereum’s price has skyrocketed, and its market cap is now worth $40 billion USD, but Ethereum Classic’s price has not seen similar success. There are many questions about the future of Ethereum Classic in the crypto community. But is Ethereum Classic a good investment for 2020? The ethereum classic price is down by over 70 percent against the dollar since the beginning of 2018. Still, the cryptocurrency is a good investment for 2020.  Coming in a distant second to ethereum, ethereum classic is a platform for decentralized and smart contracts and the world’s 15th largest cryptocurrency by market capitalization. Ethereum classic came into existence after a hard fork related to a security breach in the original ethereum blockchain in 2016. Although most ethereum users rejected the fork, a significant number of them continued to use ethereum classic instead, which went so far as to become its own blockchain.

Why are Bitcoin prices going up?

Bitcoin prices are up $100 in the last two weeks. Some people are speculating that this is due to the announcement that the CME will be offering futures trading on bitcoin. Others think that it’s the fork that happened last week that caused it. But is this the right way to think about bitcoin’s value? In the past, when the block reward for bitcoin was high, it was fairly straightforward to predict the price of a bitcoin based on the block reward. With the block reward being so low now, however, this isn’t possible. The bitcoin supply is basically growing exponentially. This means that there will be more and more bitcoins in the future and fewer and fewer bitcoins in the present. The price of a single bitcoin is soaring this week, surpassing $2700 for the first time ever. At the same time, the price of Ethereum—the world’s second-most valuable cryptocurrency—is exploding as well, increasing by almost $400 in the past 48 hours. Why are prices going up? Basically, cryptocurrencies are becoming increasingly popular, and as their popularity increases, the price of each individual coin will go up, since there’s only a limited supply. Cryptocurrency enthusiasts will say that bitcoin is becoming more and more of a mainstream currency, and as it does, its price will continue to rise.

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