Investors in Ethereum have frequently used the phrase “flippening” in the past. They claimed that this cryptocurrency outperformed Bitcoin in every way and will eventually surpass BTC in capitalization. When this occurs, we can discuss “flipping,” in which case the total value of all ETH in circulation will exceed the total value of all Bitcoins.
Why did you think of this concept?
The first cryptocurrency to enter the market was bitcoin. Due to this, some cryptocurrency investors believe it to be somewhat antiquated and to prevent the usage of several current digital asset features.
Around the time of its launch in 2015, Ethereum introduced smart contracts, a technology that was novel at the time. Thus, it was feasible for some activities to be carried out automatically when very particular criteria were satisfied because of these bits of code that were contained on the blockchain.
This made it possible to make the Ethereum network necessary for all ICOs in 2017 and 2018. As a result, both the demand for purchasing ethers and the price per unit of these tokens have skyrocketed. Many believed at the time that from a technological standpoint, Ethereum lagged behind Bitcoin a little, and that this would inevitably result in ETH’s total capitalization surpassing BTC. The concept of flippening was subsequently created and quickly propagated throughout forums and specialized websites.
Can flipping technically take place?
Investors in cryptocurrencies have long anticipated flipping in the near future. After all, Ethereum was the most popular digital asset, and its technological framework outperformed Bitcoin’s by a large margin. Sadly, things did not turn out as expected.
The ICO phenomenon subsided with the significant correction that spanned virtually the entire year of 2018. Additionally, due to BTC’s age and seeming greater resilience to shocks, new market participants opted to invest in it over Ethereum. The same was true when cryptocurrencies experienced a steep decline in March 2020 due to the coronavirus.
However, some people continue to think that flipping may still happen even after the release of the Ethereum network version 2.0. With this new edition, the Proof of Stakes system will gain acceptance in place of the power-hungry Proof of Works method. Given how prevalent the ecological issue is today, it’s feasible that some investors will find this to be a compelling argument and shift some of their Bitcoin assets to Ethereum.
Can we use this phrase to different cryptocurrencies?
In essence, the term “flipping” only applies to Bitcoin and Ethereum. These two cryptocurrencies are specifically referred to by this phrase. However, it’s possible that some individuals use this phrase to describe other digital assets. The cryptocurrency in question must then be specified in this situation.
When cryptocurrency prices dropped as a result of the COVID-19 pandemic, Ripple briefly outperformed Ethereum in terms of market capitalization. Then, many trolls didn’t think twice to make fun of Ethereum investors by telling them that the long-awaited flippening had finally happened.
We should also be aware that occasionally, some people mention switching between USD Coin and Tether (USDT) (USDC). For these people, USDT is a very risky stablecoin, so it would be better if USDC replaced it first to boost security for cryptocurrency investors. Unfortunately, a lot of people still choose Tether.
Summary of flipping
Flipping is a term that we hear used less and less these days. This is because, despite the fact that ETH’s market share growth was dangerously eroding BTC’s, Ethereum was never able to surpass Bitcoin in terms of total capitalization.
With the launch of the Ethereum 2.0 network, a flippening is not entirely ruled out. But since it’s still largely speculative, we won’t know more until after it happens. However, in our opinion, it is feasible because the Ethereum blockchain powers a number of projects, particularly those related to DeFi (Decentralized Finance). It is extremely possible that demand will soar and Ethereum’s market capitalization will soar once this network becomes more affordable to utilize.