One macro investor asks why is not Ethereum Classic hitting $0 after the second 51% attack, as the fork version of ETH didn’t freeze the funds from the DAO hack and is under the spotlight as we are reading more in the upcoming ETC Ethereum classic news.
At the end of July, there was a 51% attack on the ETC blockchain which means a single entity manages to obtain more than half of the blockchain’s hashing power thus allowing a reorganization of the chain. 51% of attacks can enable “double-spending” which is when a cryptocurrency can effectively be used twice to trick the users. The second attack took place two days ago as initially reported by Ethermine and Binance. According to the companies, more than 800,000 ETC was double-spent while the attack cost $204,000 worth of BTC for the attack.
Why isn't #ethereumclassic worth zero? It has a $800mm mkt cap.
Why own something that can be easily attacked and stolen when there are so many alternatives (even within alts space).
Digital currency is supposed to be secure.
What am I missing here?https://t.co/k78W8m6kL0
— Dan Tapiero (@DTAPCAP) August 6, 2020
Two 51% attacks happened in about a week and this left many to question the value of ETC which is still the 25th largest crypto by market cap. The Macro investor Dan Tapiero, the founder of Gold Bullion int, became an outspoken Bitcoin bull recently that asked by Ethereum Classic is not worth zero after the hacks:
“Why isn’t #ethereumclassic worth zero? It has a $800mm mkt cap. Why own something that can be easily attacked and stolen when there are so many alternatives (even within alts space). Digital currency is supposed to be secure. What am I missing here?”
Tapiero’s question was echoed by Mati Greenspan who worked at eToro and the founder of Quantum Economics and he also asked How can ETC even holds any value? Greenspan’s tweet garnered traction amongst the followers and many agreed with his sentiment. The founder of Ethereum Vitalik Buterin also commented on the debacle saying:
“ETC should just switch to proof of stake. Even given its risk-averse culture, at this point making the jump seems lower-risk than not making it.”
Although ETC could be in a bad place after the attacks especially with the introduction of the “Phoenix” upgrade which means that the Ethereum Classic blockchain reached protocol parity with Ethereum. This means that the applications built for ETH are compatible with the sister chain, as the CEO of ETC labs Terry Culver:
“This upgrade demonstrates the robust development underway on Ethereum Classic, as it is the third hard fork in the last year; and reflects the strong community consensus among ETC stakeholders. The upgrade also marks an important turning point for Ethereum Classic, where now the community is in a position to drive more innovation, to collaborate, and to make fresh technical contributions to the ETC and ETH communities.”
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