Ethereum For Investors #20 – Why Is Ethereum Classic (ETC) Still Alive?

This is Tai Zen – co-founder of the Cryptocurrency market channel and website and one of  the Oracles of Cryptocurrency for the Cryptocurrency market channel

So in this video, I am broadcasting to you guys from the Buckhead area of Atlanta and this is one of the biggest cities in America in case you’re outside the US.

It is the main hub for lots of airport traffic because it’s like the best waypoint for all the Europeans and all the Africans businesses and air traffic to come to the United States. So this is a huge city, a huge hub. If you guys noticed, I like to live in cities that have a huge airport hub because I like to travel.

So that’s the reason why I’m here in Atlanta. So I have a place in Atlanta and I have a place in Dallas so right now I’m spending a little bit more time in Atlanta for business reasons.

So anyways guys, I want to talk about why is the Ethereum Classic, why is it still alive? Why is it not dead? But why is it that it’s still alive and running? And then in a separate video, I’ll talk about the four groups of people I think that is keeping the price up to and keeping all the trading volume up on Ethereum Classic.

So in case, you guys don’t know, let me give you guys a quick summary in case you’re new to Ethereum investing or Cryptocurrency investing. We originally had 1 chain. That is called Etherium. That was started in July. It has been a year now. The original Ethereum blockchain was going along, bebopping along. They’re doing great.

And then the slack team created an application that goes on top of it called the DAO hub. It was supposed to be a decentralized venture capitalist application where it was to raise money and then distributed it out to people who are trying to build applications on top of the Ethereum blockchain.

So the DAO hub was created by a team of former Ethereum developers called the Slock.it team and they built dow software and they did not properly test it. And when they released it, it collected and it raised over $150,000,000 dollars.

And after the fundraising was done or the initial coin offering was done, they collected all this money and locked it up into what was called the DAO account and the person known as the DAO attacker, attack that account and was able to drain that account and steal like $60,000,000 at the time that it happened. It was worth $60,000,000. And then some people said it’s, it keeps saying it’s 50,000,000.

But I remember when I checked it when it was happening live that I thought was $16,000,000. Regardless if it’s $50,000,000 or $60,000,000, let’s just say that it’s over $50,000,000. So they stole over $50,000,000 of it.

However, the way that the DAO hub was set up, the account was set up, the thief the DAO attacker cannot take out those Ethers now or take those DAO tokens and convert it back into Ethers and actually cash out until like July 19th or July 20th or July 24th, somewhere around there.

So what they did was the Ethereum foundation and Vitalik and all the Ethereum developers decided that they were going to do a soft fork and freeze the funds to prevent the DAO attacker from withdrawing those Ethers and cashing out on it, just to block it.

But no one can withdraw it when they try to implement the Soft Fork. What happened was on the very next day they found out there was a bug in it. It didn’t work. So they had to reverse everything and go back to the original.

So now the only choice they had left was to Hard Fork the Blockchain. A Hard Fork means that they are going to release new software and update it and everybody instead of going this way, it’s going to veer off and go this way. And then everybody’s going to jump on the Blockchain over here the Fork the split up over here and let this one die off.

Now the old one is called Etherium Classic because that was the original Etherium blockchain. And this new one that Forks off is called Etherium Hard Fork or Etherium Fork.

And that was supposed to be live on because Vitalk Buterin, the original founder and creator of the Etherium blockchain, him and his team and the Etherium foundation and the majority vote in the consensus of all the miners and everything voted to reverse it so that they can refund the money back to the original investors so that people will not lose that 50 something million dollars

And that was the original plan. So when they created the software for the Hard Fork, they assume that everybody would jump onto the Hard Fork and follow it and support this.

And when I say everybody, that includes the users, the traders, the investors, the speculators, the exchanges, the businesses, and the software developers, the Etherium Foundation, Vitalik, and his team, the Slock.it team, everybody.

They assumed that because it gained the majority of the vote and the consensus that it was common sense for everyone to jump on it and now this is one of the few times in Cryptocurrency history that Hard Fork was implemented that they decided to make a Hard Fork, not to fix a bug or a technical issue inside the blockchain, but they did it to bail out some investors.

Now, some of those investors, including myself, so I’m talking about these investors, but I am one of those investors that investment into the DAO hub. So to say the DAO hub investors like myself and others and you guys are watching this video, they decided to a hard fork, to return everyone’s money. Everybody felt that was the right thing to do, including myself, so I’m not against it.

But I’m just saying that the result of it was unexpected. Everybody expected to go and join the new Fork. However, nobody expected that the original heart, the original Etherium Classic chain will still survive. And the exchanges starting with Poloniex decided to continue trading that Etherium Classic coin.

So because of that, other exchanges follow too like Kraken, Bittrex, and others. I can’t name them all but they all started jumping on it. So pretty much everybody is on board with offering the Ethereum Classic coins to be traded and it’s gotten to the point where the volume of it has increased so much that is gaining traction.

And there is a very, very strong possibility. It’s not like a scam.  It’s not like a Ponzi scheme. It’s wishful thinking. The amount of volume that is being traded on the Etherium Classic is enough to where it has way surpassed that of the Etherium Hard Fork chain.

So the Fork chain that goes over here. This is trading more volume than this over here, so it has started to cause concern for the people there over here because if this starts to gain the lead and becomes the dominant Etherium blockchain, what is going to happen.

And the question that everybody’s asking is, why is this still alive? Why is the Etherium Classic changed still alive when everyone should be on the Etherium Hard Fork chain?

And the reason for this is because Vitalik Buterin and the Etherium developers and the Etherium foundation were “very arrogant”. I didn’t come up with that term by the way. I’m not saying that the Vitalik is an arrogant person. I actually think he’s a great guy. I wish that when I was 20 years old, I have the skills to create a billion-dollar network, but I didn’t.

So I always, I have mad respect for by Vitalik and I will never say anything bad about the guy simply because he was able to accomplish something that, you know, 99.9999999% of the world will never be able to accomplish and that is to build a billion-dollar network out of thin air.

So I’m never gonna say anything bad about it, but there’s a lot of people in the Cryptocurrency community that I think that he and his team are very arrogant. And so what happened was they did not expect people to stay on the old classic chain.

So what happened was they did not write the software code to include the software code to kill off the old one. And so the transactions would not be accepted on the old one. They didn’t include that in the Hard Fork software.

So when they are Hard Fork,  they assume that everybody’s gonna jump over to the Hard Fork and they didn’t write the software in this new Hard Fork it to kill off this one. So that makes this one invalid. So because of that’s the reason why the Ethereum Hard Fork – the Ethereum Classic chain is still alive.

So that’s what’s keeping it, alive guys. The only reason why Etherium Classic is still alive and kicking are because the Ethereum developers and Vitalik and the other team developers and the Ethereum foundation did not even consider that there were people that were loyal to the Ethereum Classic chain and stay on it and keep it alive.

And that traders like myself and LeonFu.com, we are, to be honest with you guys, we really don’t care because we’re really in this to make money. Whichever chain survives, it doesn’t matter to us, you know, what matters is that there a clear cut that one survives because as long as there’s this confusion, the price of Etherium is going to be very hard to trade.

So because of that, I just hope that one of them dies off and the other ones survive or that there is a, a definitive answer that both of survive. So it really doesn’t matter what it is. Nothing kills a trader faster than uncertainty.

So as long as there’s certainly in the markets, Ethereum Classic goes up, we can go along and buy it to go long. If it goes down, then we can look to short it and make money on the downside.

But at this moment there’s confusion as to which coin is legit, which one’s not legit, which one’s going to survive, which one’s not going to survive. So that’s why there’s a lot of confusion right now in the markets he Ethereum Classic chain and the Ethereum Hard Fork chain

So I thought that that was interesting that if I had a bet on it, I never thought that the Ethereum Classic chain would survive either and I never thought that I would go back in and buy some Ethereum Classic chain. I mean, when it first happened, when Poloniex made it available for trading, I thought it was a scam and that was bullshit.

But the fact is, I’m a trader. I’m here to make money. It doesn’t matter to me I’m here to make a profit from it. So if there’s an opportunity to make a profit from it, I will make, I will look forward to finding an opportunity to make a profit from it.

So thanks for watching this video guys. My Indian drivers get the car warmed up so I already had a go catch this ride. So thanks for watching this video. If You guys like it, give me a thumbs up. If you guys don’t like it, give me a thumbs down and you guys have friends or colleagues that want to learn more about how to invest in Cryptocurrencies without all the bullshit and the hype.

Let them know about our channel and I look forward to seeing you guys in the future video. And in that future video guys, I’m also going to talk about the four groups of people that I think are involved in keeping up and jacking up the price of Ethereum Classic until then I’ll see you guys in a future video.

 

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