Find the best USD/EAC exchange rate for Jan 16, 2019
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EarthCoin: A genuine cryptocontender?
EarthCoin (EAC) was released on 12/28/13. Since its release, its price hasn’t increased much over half a cent. EAC currently stands at just over $0.001 per unit. The highest its price has climbed between 2013 and 2017 has been just over $0.0063 per unit.
EarthCoin is a genuine alternative coin, or alt-coin, because it’s not among the top five most traded cryptocurrencies. It ranks 348th of all 1,300 cryptocurrencies in terms of market capitalization. EarthCoin doesn’t seem to have the basic characteristics of a currency, and potential buyers should keep that in mind.
Can EarthCoin be traded on its price swings?
A glance at EAC’s price performance shows that, in general, its volatility is relatively low compared to some of the big movers like bitcoin, Bitcoin Cash or Ethereum. That’s not to say that the cryptocurrency is a bastion of stability in rough tides. On a percentage basis, EAC’s price rose as high as 175% during the four-day period from May 20-24, 2017. Past performance isn’t an indication of future performance.
It’s difficult to understand what drives EAC’s price swings when they occur. For starters, the largest swings in price for EAC occurred during its creation, rising wildly from $0.0014 to $0.00637 in three days. Aside from that time, this kind of volatility from EAC was evident mainly in 2017. The main determining factor for increases in volatility seems to be when large numbers of additional miners join the mining pool of EAC. The trouble is that the incentives for miners to mine EAC may be considered to have some of the characteristics of a pyramid scheme.
A pyramid, or Ponzi, scheme is known as a “pump and dump” in cryptocurrency lingo. This is where speculators gamble on a set of loosely matched data that somehow suggests an imminent price rise. Then, at a certain margin of profit, the asset is sold. This strategy seems workable when taking cryptocurrency market trends into consideration.
In the year 2017, total cryptocurrency capitalization increased 30 times from $20 billion to $600 billion. In 2018, another major increase in total market capitalization could occur. In that case, the price of EAC is likely to rise. The heights to which it could rise is hard to say, but buyers should consider whether it has any prospects for becoming a usable currency in any form.
What might the future hold for EarthCoin?
As far as milestone achievements for EAC go, some might say that the two largest are that it was created and that it still exists. It’s difficult to buy the cryptocurrency from an exchange, as there’s only one reputable exchange dealing in any notable quantity of EAC. There’s a wallet that you can download and use to store your EAC once bought. The trouble with the wallet is that EAC has had security issues maintaining control over its ledger.
These security issues may also impact the downloadable wallet, which seems to be the only wallet that can store EAC. This means that a prospective purchase of EAC may not be safe because the data stored by the EAC blockchain has been compromised by hackers once already and could be compromised again in the future. For this reason, no major exchanges have listed EAC, which may cause problems for its liquidity.
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Market rate for common transfer amounts of EAC to USD
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What are the considerations before buying EarthCoin?
Liquidity in the cryptocurrency market is essential for a properly functioning cryptocurrency. Without large movements of EAC on multiple exchanges, the use of EAC as a currency doesn’t exist. In addition, interest in mining the cryptocurrency appears to be low for a variety of factors.
The value theory behind mining EAC is that if you mine enough EAC, even slight fluctuations in price could create huge percentage gains on your investment. Unfortunately, to profit from mining EAC, you would need to mine enough that you could sell it for bitcoin or US dollars. This would be difficult because the current exchange rate is 0.00000007 units of bitcoin for each unit of EarthCoin (see infographic 1 above). You would also need to mine enough EAC to cover the bitcoin transaction fees, which have been as much as $40, as well as enough to cover the cost of the power used to mine EAC.
Individual miners should probably think about whether the prospect of mining EAC is risky. To entice miners to EAC, its developers offer special pre-mined or “insta-mined” EAC block rewards, which is how miners receive EAC for processing the block of transactions to be recorded on the blockchain. This means that to create transactions and enough circulating EAC, miners are reported as having EAC thrown at them. This is the most likely reason for any price movements in EAC.
The ongoing introduction of miners into the pool of EAC miners increases its price, just as a reduction in the number of miners would reduce its price. It’s worth considering whether this has the hallmarks of a pyramid scheme or a pump-and-dump cryptocurrency. If EAC appears questionable, it’s worth looking into who’s developing it.
There’s very little information other than a transcribed interview (no recording) with the founders, who are apparently named John, Norb and Wesley. There are no last names, no previous work history, no references and no well-known or verified Twitter accounts with a reputable following. Many may find difficulty in taking the discussion surrounding the coin seriously because it seems to lack professionalism with little vision for the future.
EAC may need a sign that says: “Enter at your own risk”. Although the same can be said for all cryptocurrencies, this coin may be particularly risky given its anonymous developers and approach to the operating system. Even day traders should consider the pros and cons. The issue is that due to the poor liquidity of EAC, there’s probably a risk that the transaction may not be completed on time or exchanged in the currency required. This can result in a loss of profit or an outright loss of capital.
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