Understanding Flippening in just 3 minutes

In the cryptocurrency universe, there is a galaxy of cryptocurrencies numbering in the thousands. In this universe, a few giants are starting to emerge, but none of them can yet compete with the two giants that are Bitcoin and Ethereum. But did you know that these two cryptocurrencies are fighting a battle for dominance known as “flippening”?

But what exactly does this abstract notion consist of? What is the interest of this concept in the cryptocurrency ecosystem? We explain it to you in less than 3 minutes.

What is flipping?

This term is not Is not a “technical” notion specific to the cryptosphere.it is simply a projection, a hypothesis that would come true the day Ethereum’s market capitalization surpasses that of the crypto-standard: Bitcoin.. In this case, we would see a flip or a “flip”, hence the term “flip”.

For the moment, this is just a utopia, especially considering the significant difference in capitalization between these two cryptocurrencies. At the time of writing (early November 2022), Bitcoin’s capitalization exceeds $400 billion, compared to $200 billion for Ethereum. Bitcoin’s capitalization is therefore still double.

Note Although the difference is considerable today, this has not always been the case. In fact, in July 2017, Ethereum’s valuation was very close to that of Bitcoin. At that time, Bitcoin accounted for about 40% of the global capitalization of cryptocurrencies. Ethereum, meanwhile, accounted for about 33%.

What specific implications would this change have?

The cryptocurrency ecosystem would be turned upside down.It is important to remember that Bitcoin is currently the reference currency. All cryptocurrencies (altcoins) have a price referenced to the Bitcoin. Therefore, a change in BTC necessarily has an impact on all cryptocurrencies.

If flippening were to occur, confidence in bitcoin could be undermined. In the long term, there is a risk that some projects will be abandoned and capital will be redirected to major altcoins (MATIC, ATOM, CARDANO, SOLANA…). Indeed, many solid and promising projects have been structured around the Ethereum architecture. Therefore, the takeover of the latter would not be merely capitalistic. It would also mark a reorientation of many projects.

What is the purpose of flipping?

The interest remains very artificial at the moment. From the conceptual point of view, it is mainly a question of.Acting as a paradigm shift between the two giants Ethereum and Bitcoin.. According to experts, it is even almost inevitable. In fact, Bitcoin is above all the symbol of the launch of the cryptocurrency era. In contrast, Ethereum offers a complete architecture with very important applications and derivatives.

It should be remembered that Bitcoin has a transaction processing of a few units per second, while the blockchain allows to go much faster. Regular updates of this blockchain also allow for more innovation and performance.

Conclusion: Bitcoin VS Ethereum

Of course, it is impossible to give a date which would signal the Ethereum ecosystem’s takeover of its larger Bitcoin.

In any case, this flipping issue continues to generate heated debates between pro-Bitcoin and pro-Ethereum. Cryptanalysts have recently estimated that. Ethereum’s latest evolution with its “Merge” update could sign a sharp acceleration of Ethereum and thus approach Bitcoin’s capitalization..

In the meantime, we can only direct you to this website which calculates in real time the evolution of these two markets giving access to a “flippening ratio”.. In this way, you can see for yourself the capitalist battle that these two cryptocurrencies are fighting.