As the ethereum inspired rally continues, the image of the long-dreamt of flippening is beginning to be talked about again. The eth merger is also just on the horizon, and should it go well, and the sell-the-news event done with, why shouldn’t a newly high-powered ethereum overtake bitcoin in market cap?
Perhaps bitcoin has found the bottom at $17,500. Since that time it has rallied up and now sits at between $23,000 to $24,000, with many hoping that it will reach the huge resistance at $28,000 to $30,000.
However, the real star of the show has been ethereum. Where bitcoin put on nearly 40% from the bottom, ethereum went up around 100% to $1780 from its local bottom at $880.
With such a heavy gain on bitcoin, and with the ETH merge to proof-of-stake just around the corner, the signs are there that should ethereum complete its milestones successfully, and without too many postponements (it has a history of these) then the flippening could well be on the cards.
Quoted in a Forbes article earlier today, Mati Greenspan, founder of analytics platform Quantum Economics, said of the flippening:
"I keep hearing people repeating the question, 'wen [sic] flippening? Even though there’s no guarantee this will ever happen, just looking at the numbers, it does seem like this event is getting closer by the day."
Bitcoin owes its value to the perception that it is the digital version of gold. It does indeed have many important advantages over gold, and many say that it will equal gold’s market cap over the next few years. Some might well argue though that the market does not fully understand bitcoin’s place in the current economic downturn, which is increasingly looking like it might be quite severe.
Bitcoin has the store of value proposition, but ethereum could have an even greater value due to its smart contract capability, and a far broader swathe of utility than bitcoin.
Joe DiPasquale, the CEO of BitBull Capital, was also quoted on the Forbes article as saying that ethereum was a “differentiator”:
"We do like ether, and we think it’s a major differentiator. Bitcoin has been the hundred-pound gorilla, but ether is really the other hundred-pound gorilla. Everything else trails behind."
A lot will need to go ethereum’s way if it is to overtake bitcoin in value. However, all being well, bitcoin’s halving effect would be trumped by ethereum’s upgrade, which would vastly reduce the inflation rate of ether, leading to an even sharper supply reduction than the bitcoin halving.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.