Decryptionary defines the flippening in crypto as “the transition of other cryptocurrencies (such as Ethereum) growing bigger, more important, and more valuable than Bitcoin.”
But the possible future occurrence of the flippening refers more specifically to Ethereum overtaking Bitcoin to become the most valuable cryptocurrency in terms of market capitalization. For the most part since its creation in 2009, Bitcoin reigns supreme in being the top cryptocurrency without serious threat from contenders, where its market capitalization even represented 86.74% of the total market capitalization on February 24, 2017. Though its current unit price of at least $32,000 in just twelve years is unprecedented, Bitcoin’s market share has precipitously fallen to just a little over 46%, while other cryptocurrencies are rapidly gaining their share of the market, especially Ethereum, whose 16.49% market share is growing fast.
Factors of Possibilities
Many blockchain applications, protocols, and cryptocurrencies have been developed and run on the Ethereum blockchain, seizing mass-market attention. The crypto sector has opened a conversation, and competition, as to who will lead the industry forward given that ether and Ethereum boast of use cases ripe enough for a take-over.
Transactions and Applications
Up until now, talks abound whether cryptocurrencies can hold transactions, or best be left alone as a speculative investment, or property subject to tax, according to the SEC. Its functionality as a medium of exchange even with the development of stablecoins is still shaky to its roots. It may take time yet for it to be a worthy replacement for fiat money. Ethereum, meanwhile, is providing a solid foundation for the flourishing of DeFi (decentralized finance) and NFTs (non-fungible tokens).
Attractive Investment Diversification
The continuous creation of cryptocurrencies makes crypto investments so diversified on the Ethereum blockchain. What more with stablecoins, DeFis, NFTs, and their use cases, Ethereum will not cease to attract non-bitcoin investments to a large degree.
Of Assets and Ecosystems
Bitcoin is valued as a crypto asset, a store of value that has all the potential to become a medium of exchange. The move of El Salvador to adopt it as their major currency is leaving the world breathless as the outcome is highly anticipated positively. Yet the marketplace as a whole will eventually decide the value of each — bitcoin and ether — on their own bases. Ethereum, besides its native token, is a vast ecosystem of various platforms that are becoming interoperable with other non-ethereum blockchains. The community of platforms Ethereum has built and still building can just turn things around and make the flippening ultimately happen.
The cryptoworld is relatively young and a lot of milestones are yet to happen, or bound to, as the case may be. It is an open competition as to how platforms, protocols, and crypto-assets serve the vast majority who are seriously becoming openly responsible and committed to making it work. Centralized authorities are wary and cautiously watching how this techno-mechanism can actually make a difference. While some are still studying use cases, others are already applying use cases productively. Regulations will result from a careful evaluation of past experiences and wise foresight. Whether flippening will happen or not, competition is proving to be a healthy exercise for the overall growth of the crypto industry.
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