What is Flipping in Crypto?
Flippening, the term has gained popularity in the cryptocurrency world as investors believe that Ether (ETH) may overtake Bitcoin (BTC) as the dominant cryptocurrency. Is this likely to happen?
What is convert?
the translation A term coined in 2017 and used in crypto to refer to the potential swing of the largest cryptocurrency (Bitcoin) by capitalization. This term refers specifically to The possibility that the Ethereum blockchain Ether will exceed the market capitalization of Bitcoin (BTC)..
The market capitalization of a cryptocurrency is its circulating supply (number of coins) multiplied by its current price.
Although BTC has always been the first cryptocurrency in terms of market capitalization, market dominance has decreased year by yearIt will drop from 95% in 2013 to below 40% in 2022.
It was mid-2017 when Bitcoin lost its momentum and other cryptocurrencies were able to regain market share. One cryptocurrency in particular is attracting attention, Ether from the Ethereum blockchain. The Ethereum community then hoped that ETH would surpass BTC in terms of capitalization during this time so that it would succeed in the conversion.
On June 18, 2017 Bitcoin dominance reached one of its lowest points with 38.69% of the market. In parallel, Ether’s dominance over the entire cryptocurrency market explodes, surpassing 31.22%.. This difference of only 7.5% will never be found. Ether has never been closer to dethroning Bitcoin as the #1 crypto in the market.
It happened around June 18, 2017
Flipping is still a goal for part of the crypto community and many believe it is still possible for ETH to overtake BTC within days in terms of capitalization.
Since then, the term has been replicated to other cryptocurrencies and is also used to refer to other potential swings, such as the most capitalized stablecoin. So, Another tilt that has been observed for several years is the stablecoin USDT by USDCForever second behind Tether stablecoin.
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Will the fight ever happen?
It is impossible to know when or if flippening will occurSince the capitalization of Bitcoin and Ether is subject to many factors, especially their acceptance and the general conditions of the contract.
The correlation between the two cryptocurrencies will have to decrease if Ether can hope to one day dethrone Bitcoin. Indeed, even today, if the price of Bitcoin starts to rise or fall, Ether will do the same.
In addition, part of the crypto-community believes that the greater benefits of the Ethereum blockchain, especially with its smart contracts, will cause Bitcoin to irrevocably lose its primacy.
However, Bitcoin derives its power from being the digital equivalent of gold. Bitcoin remains the most secure store of value of all cryptocurrencies (except for the special case of stablecoins).
It is impossible to predict whether the spin-off will ever happen, but it will be important to follow the evolution of the dominance of major cryptocurrencies about others as the rules spread around the world.
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Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then I have been trying to share quality content to make the sector more democratic for all.
Klement Vardzala
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