What Is the Flippening?
The flippening refers to a situation anticipated by Ethereum enthusiasts in which the total market capitalization of Ether surpasses that of Bitcoin.
The term originated during the 2017 bull run when Ethereum achieved its highest value relative to Bitcoin.
During the 2017 bull run, the market was optimistic about Ethereum’s greater flexibility and ability to support smart contracts applications.
This led to a significant surge in the price of Ethereum, although its market capitalization later decreased relative to Bitcoin.
Currently, Bitcoin remains the most valuable cryptocurrency by market capitalization, with Ethereum in second place.
When Will the Flippening Happen?
Although the flippening commonly refers to Ethereum overtaking Bitcoin regarding market capitalization, there are various other metrics to compare the two blockchains.
In some of these metrics, Ethereum has already surpassed Bitcoin.
Is the Flippening Possible?
The possibility of a flipping is a popular topic of discussion, particularly within the respective communities.
With the upcoming Merge, many in the Ethereum community anticipate a flippening in the near to mid-term.
To assess the feasibility of a flipping, one must consider the total supply of both cryptocurrencies.
Digital Gold and Digital Oil
Another crucial aspect to consider is the use case of each cryptocurrency.
Bitcoin is often referred to as a digital commodity or “digital gold” due to its reputation as a reliable store of value.
It is also the oldest cryptocurrency and uses a proof-of-work mining mechanism, making its community conservative and resistant to change.
On the other hand, Ethereum is known as “digital oil” as it facilitates transactions in the DeFi and NFT spaces through smart contracts.
Ethereum has also implemented a burn mechanism that triggers token burns during network congestion, potentially leading to deflation.
The market will ultimately determine the demand for digital oil or gold.
How Will the Flippening Happen?
It’s important to note that a hypothetical flippening does not imply that one ETH will be worth more than one BTC.
Instead, it refers to the total market capitalization of all coins combined surpassing that of Bitcoin.
Furthermore, Ethereum could potentially flip Bitcoin even during a bear market.