What is the Background of The Flippening?
In cryptocurrency enthusiast circles, the term the flippening is becoming increasingly important. It is a hypothesis made by experts on the scene. According to a large number of specialists, there will be a switch between the two leading cryptocurrencies.
Specifically, Ethereum is set to replace Bitcoin as the currency with the highest market capitalization. At the moment, Bitcoin has a market capitalization of $263,603 million. Ethereum, on the other hand, with a market capitalization of $73,514 million, is in second place.
This means that Ethereum currently only has 27% of the Bitcoin market capitalization. At the beginning of November, this share rose to 62.5%. This means that a change of position between the two tokens is already looking likely.
What is “The Flippening” Hypothesis Based on?
The assumption that there will be a shift in the position of the tokens is based on the functionality inherent in the Ethereum token. This assumption is further underpinned by the constantly growing trading volume achieved by Ethereum.
Since 2009, Bitcoin has assumed the role of the most important cryptocurrency, which has been substantiated to date. However, the market has heated up considerably, so speculations now include the future prospects of the tokens in the calculation of the current price.
In theory, Ethereum can register greater growth potential through smart contracts. However, the current price of the Bitcoin token is based on investors’ expectations of an increase in the use of the token for payments.
Nevertheless, according to the developers, Bitcoin Cash has been developed for this function. Whether this hypothesis comes true remains to be seen. Ethereum certainly has significant advantages over Bitcoin, especially considering its scalability, so this development could come to pass.