The Flippening refers to a theoretical event in which Bitcoin loses its dominance over the cryptocurrency market. This event, while thoroughly hypothetical is nonetheless possible, and represents the massive potential for opportunity and disruption in the growing cryptocurrency ecosystem.
The term was first forwarded in 2017 when some began to postulate that an emerging coin could challenge Bitcoin. Ethereum in all likelihood would be that challenger. Furthering the excitement of Ethereum investors, Bitcoin did undergo something of a drop in value in 2018. This indicated that while still very improbable, it was possible that Ethereum could surpass the value of Bitcoin.
Market Cap Ratio
To achieve ‘The Flippening’ a coin like Ethereum would have to surpass Bitcoins ‘Market Cap Ratio.’ A Market Cap Ratio refers to a cryptocurrencies individual coins value, multiplied by the number of coins that are in circulation. This Market Cap Ratio is dynamic and may fluctuate due to a host of various reasons. The value of a coin may go up or down and is also respondent to the number of coins that have been mined off the blockchain. These value fluctuations accurately indicate a degree of volatility within the crypto market, however, larger coins that have a market cap value greater than 10 Billion are considered to be more stable.
Currently, Ethereum is the strongest contender for the theoretical ‘Flippening’, but as it stands is still leagues behind Bitcoins market dominance.
Bitcoin’s functionality is considerably more linear and simplistic when compared to the technological innovations offered by Ethereum. However, Bitcoin was the first cryptocurrency ever created and is by far the most well known, and looks set to continue to dominate crypto in the near future.