ETC monetary policy is aligned with Bitcoin, Barry Silbert plans to launch ETC investment trust and mining platform

Ethereum (the original chain) is a project that was spontaneously formed by the consensus of the free market. Although ETC and ETH once belonged to the same ecosystem, their development paths are completely different.

In the first week of the ETC project, the token trading was very profitable. But now, the ETC trading volume in the market is on a downward trend. The ETC market is very special because after the hard fork, all ETH holders received the same amount of ETC, and they have every reason to drive down the price of ETC by selling in large quantities. ETC is seen as a competitor of ETH, so a lot of trading activities in the market are out of revenge.

Although ETC has many enemies, there are also many pure supporters in the market. Blindly lowering the price of ETC will only give those true supporters the opportunity to buy in at a low price. Eventually, all opponents will exit the market, tokens will change hands, and the behavior of trading parties will become more rational. When pure trading parties appear, the bull market begins.
I made a lot of money in the first week of ETC trading. Then I started buying a lot at about 0.0019BTC/ETC (below the average price). This way of buying at low prices is a long-term strategy that requires a certain amount of judgment and foresight. Even ETH diehards consider buying ETC as a hedge. Personal emotions or politics will not affect the trading strategy of smart money.

Given its low price and solid foundation, I am absolutely bullish on ETC in 2017. Here are the reasons why.

Development

The development of ETC is difficult because you are using code written by others. The complexity of the ETC system and the diversity of client programming languages ​​also increase the difficulty of its development.

The burden of developing the entire system falls on the shoulders of Chief Technology Officer Igor Artamonov. He is responsible for almost all major technical analysis and improvements of the ETC blockchain, mainly focusing on the maintenance of the Geth client. He helped ETC overcome the difficulties of the first hard fork, adjusted the gas price and diff bomb issues. He has now switched to the Parity client and is also dealing with the bomb delay issue.

It is worth noting that Ethcore is very supportive of ETC's development and has been accepting Igor's pull requests. ETC is currently committed to introducing Go client developers to maintain Geth, so Igor turned to Parity, but he is still responsible for client testing and developer recruitment.

ETC is also currently recruiting Rust client developers to help Igor with Parity improvements. Together with the core development team, Igor is responsible for a lot of analysis, coordination and support activities, as well as everything that can help understand client operations, improvements and testing.

There are many core developers in the community who have made selfless contributions to the success of ETC. Elaine Ou is one of them. She did a lot of analysis and support work for the first hard fork of ETC. Currently, she is responsible for the repair and upgrade of the cpp client. In addition, core developer Daniel Kaminski de Souza is the head of the Mist client, and Eric Somdahl and Cody Burns are mainly responsible for analysis and infrastructure.

Whether it is development, analysis or support work, the community operation team is growing. Their efforts cannot be ignored, and most of them consume a lot of time every day, but receive little financial return.

The ETC community is about to welcome a new development team to maintain the Scala client. Recently, I talked to Charles Hoskinson on the phone about his views on the ETC development roadmap. He is the founder of blockchain research and development company IOHK.

His company plans to hire 3 to 5 full-time developers to solve ETH's system vulnerabilities and security issues. Charles hopes that system improvements will be determined through detailed review and community consensus, rather than a few hasty codes and impulse.

There are currently two groups of developers competing for the relevant positions, and IOHK will ultimately select the one with the better performance.

In conclusion, the development of ETC is moving in the right direction and will provide a lot of innovation to the blockchain space.

ETC Trust Investment Fund

Barry Silbert said that he is currently preparing to establish an ETC trust investment fund for OTC market transactions. The Bitcoin Investment Trust was established in 2015, when investors' strategy for Bitcoin was also to buy at a low price. Now that Bitcoin is gaining momentum, the investment trust currently manages 1亿美元worth of Bitcoin.

Investment trusts can increase ETC's exposure to institutional investors. It seems that Barry holds a large amount of ETC. Before the official establishment of this investment trust, the buying pressure of ETC will only increase. This kind of news may touch the nerves of many people. They are afraid that if they don't buy, they will miss the opportunity, which will eventually lead to an ETC bull market.

When asked about his relationship with ETC, Barry responded on Slack:

First of all, I want to clarify that the comment that our strategy for ETC is short-term speculation is completely wrong. All decisions of DCG (Barry's company) are based on the long-term development of the company. We do not trade digital currencies, we are committed to building infrastructure to support the development of the ecosystem and the growth of enterprises. For example, we are currently preparing to establish an ETC investment trust (similar to the Bitcoin investment trust), which will be established once the ETC monetary policy is officially released. At the same time, we also plan to establish an ETC mining platform .

Monetary Policy

The formulation of ETC's monetary policy has reached the final stage. Unlike ETH, ETC will control the total issuance to 2.1亿到2.22亿个左右. ETC will also reduce the inflation rate by halving the block reward. This method has been effective in Bitcoin, so it will also bring confidence to ETC investors.

PoW Mining Mechanism

ETC is dealing with the mining difficulty bomb problem and plans to continue using the PoW mining mechanism, which may be pure PoW or a combination of PoW and PoS. ETC continues to use PoW to protect the future of miners. In addition, there is evidence that PoW coins are more secure and have better long-term market performance.

After ETH completely switches to the PoS system, ETC is likely to obtain a large amount of its computing power. In addition to buying coins, the PoS system does not require any additional resources and is more biased towards large users. In the PoS system, the Ethereum Foundation's centralized control over the network will become stronger and stronger because they themselves hold a large amount of ETH.

The Chinese mining community also prefers ETC. Community celebrities such as Chandler Guo have publicly expressed their support for ETC. China's large exchange BTCC also plans to open ETC trading, but does not consider listing ETH.

Decentralization

ETC was born in a "turbulent time", so this project attaches more importance to decentralization and community opinions. Like Bitcoin, ETC community members also contribute to its development as volunteers. There is no centralized company or foundation in the community, and any decision is made based on community discussions.

The increasing centralization is the main reason why ETH supporters turn to ETC. The DAO attack is enough to illustrate the power of the Ethereum Foundation in the ETH network. Vitalik has too many fanatical fans around him, giving him too much power, which is why he ignores the opinions of the community and makes arbitrary decisions on key decisions.