Flippening is a term that has been used a lot in the past by Ethereum investors. According to them, this cryptocurrency was in all respects superior to Bitcoin and should eventually have a larger capitalization than that of BTC. When this happens, then we can talk about flipping, i.e. the total value of all ETH in circulation will be greater than that of all Bitcoins.
In order to learn more about this expression which was widely used during the years 2017 and 2018, we will find out why this idea appeared. We will also discuss whether this is actually possible and whether one can also use this expression for other digital assets.
Why did you come up with this idea?
Bitcoin was the first cryptocurrency to hit the market. Because of this, some crypto-investors feel that it is a bit archaic and does not allow for certain things that can be done with digital assets today.
At the time of the release of Ethereum around 2015, this cryptocurrency brought with it something revolutionary for the time: smart contracts. Thanks to these bits of code present on the blockchain, it was thus possible that certain actions were carried out automatically when very specific conditions were met.
This made it possible during the year 2017 and 2018 to make the Ethereum network essential for all ICOs. As a result, the demand to buy ethers has exploded as well as the unit price of these tokens. Many then considered that Bitcoin was a bit behind Ethereum from a technological point of view and that this would irretrievably lead to the fact that the total capitalization of ETH would be higher than that of BTC. The idea of flippening was then born and spread everywhere on forums and specialized sites.
Technically, can flipping actually happen?
Crypto investors have long believed that flipping was going to happen in the near future. After all, Ethereum was the most widely used digital asset and its technical design was vastly superior to that of Bitcoin. Unfortunately, things did not go as planned.
During the big correction that spread over almost the whole of 2018, the phenomenon of ICOs faded. Additionally, new entrants to the market preferred to invest in Bitcoin over Ethereum because BTC was older and seemed to be more resilient to shocks. The same was true during the sharp fall in cryptocurrencies in March 2020 in connection with the coronavirus.
However, some still believe that with the release of version 2.0 of the Ethereum network, flipping may still occur. This new release will move the consensus from a power-hungry Proof of Works system to a Proof of Stakes system. Since the ecological question is more and more present today, it is quite possible that this could be a strong argument for some investors and that part of the investments in Bitcoin will then be transferred to Ethereum.
Can we use this expression for other cryptocurrencies?
Basically, flipping is an expression that is reserved for Bitcoin and Ethereum. This term was created especially for these two cryptocurrencies. Nevertheless, it is possible that some people use this term to refer to other digital assets. In this case, it is then necessary to specify the cryptocurrencies in question.
During the fall in cryptocurrency prices due to the covid-19 pandemic, Ripple even exceeded the capitalization of Ethereum for a short period of time. Many trolls then did not hesitate to mock Ethereum investors by explaining to them that the long-awaited flippening had finally taken place.
We can also note the fact that some people also speak from time to time of a flippening between Tether (USDT) and USD Coin (USDC). For these individuals, USDT is quite a dangerous stablecoin and it is better for USDC to replace this first in order to increase security for crypto investors. Unfortunately, many people continue to prefer Tether today.
Conclusion on flipping
Nowadays, flipping is an expression that we find less and less. This is due to the fact that Ethereum never managed to overtake Bitcoin in terms of total capitalization, even though ETH’s market share growth was dangerously eating away at BTC’s.
With the arrival of the Ethereum 2.0 network, it is not excluded that a flippening takes place. However, it is something still very hypothetical and only the future will be able to say more about it. In our opinion, however, it is something possible because many projects, especially those related to DeFi (Decentralized Finance), work thanks to the Ethereum blockchain. When this network becomes cheaper to use, it is very likely that demand will explode and the total capitalization of Ethereum will skyrocket.
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