Have you heard the term “the Flippening”? Cryptocurrency investors have been talking about this event for months, and they’ve been attempting to divine when market forces will align to make it happen. If you haven’t heard of it before, read on.
What Is the Flippening?
The Flippening refers to the moment in time when another cryptocurrency bumps Bitcoin from its #1 market capitalization spot. More specifically for many investors, it’s when Ethereum will dethrone Bitcoin as the cryptocurrency in most demand.
Why Will Ethereum Overtake Bitcoin?
There are many reasons investors believe that the Flippening will happen, it’s only a matter of when. Here are some:
- Bitcoin was the first to successfully innovate blockchain technology and dominate the cryptocurrency market, but other altcoin developers have built better and more user-friendly versions that accomplish the same goals since then. Bitcoin’s transaction costs are high and traders often experience delays of days or more – making it a gamble to trade it at all given its fluctuating value. One of Bitcoin’s largest advantages is now in the number of people who are holding it. The market is fickle; that could change at any time.
- Ethereum takes much less time to mine – 14 seconds versus 10 minutes for Bitcoin. There is so much congestion on Bitcoin’s blockchain that confirmation is often very inconveniently delayed. Of course, the Lightning Network may help solve this problem of scalability eventually. For now, delays persist and therefore…
- It costs much less to transact with Ethereum than it does with Bitcoin.
- Most altcoins on CoinMarketCap are Ethereum-based tokens. Bitcoin was not designed to run smart contracts. It was designed as a standalone decentralized cryptocurrency to be used worldwide by people to transact. Every day new coins and new applications are developed using Ethereum which makes it more valuable on many levels.
- Ethereum’s team is public and invested in improving the platform’s security, scalability, and mining process. Bitcoin’s founder, Satoshi Nakamoto, has always been a shadowy figure, and its team is not as active or responsive as Ethereum’s.
When Will the Flippening Happen?
Recently Roger Ver, also known as “Bitcoin Jesus,” said, “I see it happening, and I believe it’s imminent. Ethereum could overtake bitcoin by the end of the year and bitcoin cash could do the same before 2020.” It should be noted that Roger Ver frequently expresses heavy bias towards Bitcoin Cash. Other market watchers differ, and individual investors are keeping a close eye on Ethereum’s valuation relative to Bitcoin. The Flippening Watch website breaks it down from day to day.
In a very real sense, the Flippening is a nonevent. Cryptocurrency is not a race exactly. There does not have to be a winner and a loser between Bitcoin and Ethereum. Bitcoin was created as a decentralized digital currency and worldwide payment system, and Ethereum was developed as a decentralized platform that runs smart contracts. Since Bitcoin and Ethereum are not solving for the same problems, they can both exist and benefit their investors and users in different ways. The Flippening, therefore, if it happens, won’t mean that Bitcoin is a poor investment – just that Ethereum is a good one and getting better all of the time.