Ethereum Classic and Bitcoin Gold Profit From Perceived Low Price

0

Last Updated on 2 August 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts

In the past week, as the demand for Bitcoin and Ethereum grew and the two biggest digital coins rallies, two smaller coins, namely Bitcoin Gold and Ethereum Classic, rallied even harder. Crypto fans know this phenomenon very well.

Whenever first time buyers see the price of Ethereum (now at around $1,700) and then that of Ethereum Classic (now at around $40), they believe they’re getting a good deal.

This is because small investors perceive Ethereum Classic as more affordable and buy that coin instead. This effectively boosts demand for the coin and drives up prices. In the past week, Ethereum Classic gained 40%, Bitcoin Gold 30%.

Advertentie.

Apple and Tesla

Two known stocks that have had to deal with similar perceived (too) high prices were Apple and Tesla. As their stock price became too high for regular investors to consider owning sharer of the company, both apple and Tesla decided to do a stock split. Offering a multiple number of shares in the company, for a lower price.

But for cryptocurrencies it’s a different story. It’s not like Satoshi Nakamoto is all of a sudden going to decide to offer 105 million Bitcoins for $4k instead of 21 million Bitcoins for $20k. The number of Bitcoins is capped at 21 million and that is the attractiveness of it. However, whenever Bitcoin and Ethereum experience rallies after a slowdown, Ethereum Classic and Bitcoin Gold tend to attract new buyers who believe they’re getting a good deal.

Problem for them is that whenever Ethereum Classic tumbles, it also tumbles harder than Ethereum.