Ethereum Classic is a public, open-source blockchain-based platform. The technology provides a Turing-complete virtual machine that has the ability to execute scripts using a network of public nodes. The technology uses a token called “classic ether” to pay for computations rendered. The token can also be transferred to other market participants or stored in a cryptocurrency wallet.
Ethereum Classic was originally released in July of 2015. It is called “classic” due to the Ethereum platform having been forked. Following the fork, the new tokens kept the name Ethereum while the old tokens were renamed Ethereum Classic. To make a long story short, Ethereum Classic came to be by a disagreement among members of the Ethereum community, with some members rejecting the hard fork and electing to continue using the unforked version. Ethereum Classic is available on multiple exchanges including Bittrex, Bitfinex, Shapeshift and more.
One of the primary attractions to Ethereum Classic is the fact that it is decentralized. The network uses blockchain technology, a type of distributed database. Blockchains do not need to be run or managed by a single person or entity, and are sometimes referred to as being “trustless.”
The move towards cryptocurrencies is in its early stages. Although it remains unclear if the technology will one day dominate the world of commerce and possibly even replace other forms of money, it does have numerous potential advantages compared to other traditional payment methods.
You can use cryptocurrencies to send money anywhere in the world quickly and at a very low cost. You also do not need to worry about converting currency, since the technology is the same everywhere. Cryptocurrencies may also potentially provide additional security for transactions, although they may need to establish a longer track record before becoming more widely accepted.
Because cryptocurrencies have a limit on the amount of tokens or units available, the potential for a significant rise in Ethereum Classic price does exist. Many investors have already begun trading cryptocurrencies, while others have been buying and investing for the long-term.
If you are looking to invest in Ethereum Classic for the long run, an Ethereum Classic IRA may be worth consideration. An Ethereum Classic IRA is a self-directed IRA account, in which the holder can purchase non-traditional assets outside of stocks and bonds. Using an IRA account to invest in the technology can have several potential advantages.
Depending on the type of IRA, contributions may possibly be tax deductible. The current limit for a traditional IRA account for 2017-2018 is $5500, and if 50 or over increases to $6500. Whatever amount is contributed, up to the maximum, may potentially be tax deductible and therefore reduce your current tax bill.
The biggest possible benefit of this type of IRA, however, is the potential for tax-deferred growth. Any gains made in an Ethereum Classic IRA may be non-taxable until distributions are taken, provided that all applicable rules and guidelines have been adhered to. CryptoIRA.com makes it easy for investors to rollover or open a new IRA or 401(k) to invest in ETC.