Ethereum Classic vs. GBP – Cryptocurrencies

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Ethereum Classic is an open-source, decentralized cryptocurrency that is derived from the Ethereum blockchain platform. Like every other digital currency, the Ethereum network also offers complete privacy and security of monetary transactions without any involvement of a third party or intermediary such as banks.

Ethereum is currently the second most popular cryptocurrency currency after Bitcoin, based on market capitalization. Ethereum was proposed as a whitepaper in 2013 by Vitalik Buterin, who was a cryptocurrency programmer and researcher. Ethereum was later developed in 2014 and went live in July 2015 with 72 million coins. The main purpose of Ethereum was to prevent any financial corruption and provide a system or way of doing a digital transaction that is immutable.

The Ethereum platform worked on smart contracts that are codes that automatically perform an operation when required conditions and guidelines are met. Ethereum functions using Ethereum Virtual Machine (EVM), which executes the scripts using a network of public nodes.

The community of developers formed DAO (Decentralized Autonomous Organization’ with the prospect of venture capital investment. Almost $150 million were raised, but suddenly a hack occurred, and $50 million was stolen. The developers decided to perform changes in Ethereum code to reverse the hack and compensate the loss of investors.

On July 20, 2016, a hard fork or split was done that separated the Ethereum blockchain code into two parts. The older version was renamed ‘Ethereum Classic,’ and the new one adopted the original name ‘Ethereum,’ which was already established and had global acceptance among digital currency users. The Ethereum Classic community of developers were passionate about the original Ethereum blockchain code and wished to keep it decentralized and make security changes to prevent hacking in the future.

Ethereum Classic was developed to be flexible, adaptable, and allowed users to form new decentralized applications using the Ethereum Classic platform. Ethereum Classic provides the users with a Classic token that can be used to ensure transactions between participants and reimburse for the calculations performed on the Ethereum platform. In cryptocurrency, any individual or user that does not upgrade to new software is not able to verify the new transactions.

What is the ETC/GBP currency pair?

The Ethereum Classic (ETC) pairing with Euro (GBP) is given by ‘ETC/GBP’ where ETC is the base currency, while GBP is the quote or counter currency. The ETC/GBP pairing specifies the combination of ETC, an offshoot version of Ethereum, and GBP, which is one the third most important currency in the world after the United States Dollar (USD), and Euro.

The ETC/GBP signifies the relationship of Ethereum Classic with the Great Britain Pound. The ETC/GBP pair shows how many British Pounds are required to buy one Ethereum Classic. The current exchange rate is 1 ETC = £4.00

History of ETC/GBP Pair

Ethereum Classic is seen by most as a hybrid version of Ethereum and Bitcoin. Ethereum Classic allows users to perform several functions on the platform using smart contracts that execute function automatically. The Ethereum Classic is capped at 210 million coins, and only a finite number of tokens are given that ensure the core values of the Ethereum blockchain code.

In May 2016, DAO was established as a venture capital fund. There was tremendous excitement and acceptance, and almost $150 million was accumulated within 28 days. But in June, a hacker stole an estimated $50 million, which led the developers thinking of a possible security hack. But later, it was found out to be due to technical issues with the code. The value of ETC fell from $20 to $13 following the news of investors losing their money due to the hack.

The Ethereum developers decided to roll back to the original Ethereum blockchain code to retrieve the lost funds, so a split or ‘hard fork’ was done on July 20, 2016 which led to ‘Ethereum Classic (ETC)’ and ‘Ethereum (ETH).’ The market capitalization of ETC/GBP is £462.505 million. The current circulating supply of ETC coins is 116 million, and the maximum supply is 210 million.

The Great British Pound is the oldest currency that is still being traded and circulated in the world. GBP is the official currency of the United Kingdom, and GBP until the 1950s was considered as a gold standard for many other global currencies. British Pound is also used as a reserve currency along with the US Dollar and Euro. British Pound is also among the Major currencies along with US Dollar, Euro, and Japanese Yen.

How to analyze the ETC/GBP Price Chart

If we evaluate the price chart of the ETC/GBP pair, we note that value remained in the range of £7.00 to £10.00 from the second week of January 2020 to the third week of February 2020. The ETC/GBP pair saw a considerable downtrend from the last week of February 2020, and the lowest value of £3.44 was seen on March 12, 2020. In the last six months, the highest value of the ETC/GBP pair was £5.97 on August 1, 2020, but the ETC/GBP pair is again declining, and the lowest value was £3.80 as observed on September 5, 2020.

Currently, ETC/GBP pair trades on £4.00. The Bid price is 3.91, while the Ask price is 4.04.

If you think that the price of ETC will increase as compared to GBP, then you will go long or Buy, and similarly, if you guess the price of ETC will drop against the GBP, then you will go short or Sell.

What causes price change in the ETC/GBP pair?

The Ethereum Classic is known for its high volatility that attracts the day traders who can try to take advantage of sudden price swings and have the possibility to potentially profit.. The value of Ethereum Classic depends on various factors such as

• The price fluctuations in other dominant cryptocurrencies such as Ethereum and Bitcoin
• The changes and updates in the Ethereum blockchain platform that influence the liquidity and transaction time
• ETC is traded in few exchanges, but sudden popularity can force other exchanges to offer ETC, which could lead to an unexpected increase in price and demand.
• The value of other similar digital currencies such as Dash, and Bitcoin Gold
• The acceptance and legitimacy of Ethereum Classic and other cryptocurrencies.

The value of the British Pound is impacted by the monetary policy of the Bank of England (BOE). The economic factors that impact the value of GBP are interest rates, economic growth, inflation, regional and international politics, and trade relations with other countries. In recent years, the UK’s decision and finally leaving the European Union (EU) has also significantly influenced the price of the British Pound.

The information above is for education purposes only and cannot be considered as investment advice. Past performance is not reliable indicator of future results.