Ethereum Flippening; The Next Big Crypto Event
If you are a business owner, you know what it means to be overtaken by your competitors to the extent that they throw you out of a competitive edge, it could mark the downfall and finally the closure of your business as a result of an acute shift in the way customers embrace your goods and services. A similar situation is experienced in different personal life encounters, nevertheless, it is not worth terminating our lives when circumstances or opponents beat us since there is always the opportunity to arise and shine over and again. The two cases are but examples of “flippening”.
Different cryptocurrencies are striving to achieve greater degrees of recognition in the financial world. They are coming with alternative solutions to challenges currently facing the giant Bitcoin, with the anticipation of switching places with Bitcoin in the near future which could be today, tomorrow, or even the days to come. Who knows?! Perhaps, the ‘flippening’ conversations increasingly becoming popular in the cryptocurrency world is just about to give us a surprise.
What is Ethereum flippening?
When most cryptocurrency investors and observers refer to flippening, they usually more of focus on Ethereum flippening. This is because compared to other altcoins, Ethereum offers Bitcoins a stiff competition, something which Ethereum creators, users, among other stakeholders see will finally lead to the displacement of Bitcoin as the number one cryptocurrency by Ethereum.
For quite a long time, Bitcoin held the top position without any serious competition, hitting as high as 87% of the total market capitalization of all cryptocurrencies. The latest statistics indicate that the number one is currently enjoying a staggering 34.72% market share with Etereum closely falling in second place with a market share of 18.26%.
It is only a matter of time when the people’s digital currency will be displaced by the number two. According to Steven Nerayoff, Ethereum’s co-founder, people, and businesses in a wide array of industries are quickly embracing Ethereum. Nerayoff believes that the increased projects currently being tailored around the cryptocurrency could see Ether flippening take roots in 2018, which will eventually engineer Ethereum toppling Bitcoin.
Can Ether flippening really happen?
As Ethereum fast grows in momentum both in terms of price and other parameters, some believe the ‘The Flippening is Nigh’ as the r/BTC subreddit users state in their discussions on what is eating into Bitcoins. Other users believe that these are mere speculations and still holding great onto their Bitcoins supply with the hopes that Bitcoin will retain its glory for eternity. Then there is that group which is oblivious to what is going on, they are simply seating on the fence.
Well, there are several indicators that the struggle between Bitcoin and Ethereum is still on and can pull a turn of events for the two top cryptocurrencies even tomorrow. These spotlights include:
The Bitcoin is experiencing fast rising problems with speeds and fees
Over the recent past, many Bitcoin users have been learning how not to love Bitcoins. This is resulting from the cryptocurrency’s increasingly growing inefficiency at how transactions are carried out in terms of speed and fees. There have been rising complains of over delayed verification of transactions in the Bitcoin Network and ballooning transaction fees which make the platform uneconomical for carrying out small transactions.
Etereum is offering an alternative to Bitcoins in terms of fast transaction processing speeds and low transactional fees, gaining it a competitive edge against the giant cryptocurrency.
Ethereum’s Casper is almost coming to life
One of the biggest challenges currently hardly hitting Bitcoins is scalability. Having suffered some level of scalability issues, Ethereum developers have been consistently working on a shift from a Proof of Work to a Proof of Stake blockchain.
A proof of work consensus results into the need for a lot of hard work and electricity in confirming transactions through the mining process. This, in turn, makes the mining process expensive with growth in the use of a given cryptocurrency’s which in turn inflates the transaction fees required by miners as well as the transaction speeds. A Proof of Stake algorithm requires much less computation power to approve transactions in a given blockchain, this keeps transactional fees and speeds at their minimum.
Casper is the anticipated consensus that will breathe some new life into Ethereum’s blockchain, it runs on a Proof of Stake algorithm. Casper is important in ensuring that Ethereum’s network cannot be easily bogged down regardless of the number of transactions it handles per second. Switching to Casper will enable Ethereum to more effectively handle transactions. Buterin, the founder of Ethereum, recently came out and stated that with Casper, Ethereum will scale to handle as many transactions as Visa, which can handle roughly 50,000 transactions per second.
The rise in ICOs and ERC20 Tokens
In the year 2017 alone, Initial Coin Offerings (ICOs) made vast contributions to the Ethereum network, yielding over $800 million that year alone. This then saw the value of Ether tremendously skyrocket, which is currently standing at an estimated $1000-$1100 per Ether. In the month of January 2017, an Ether sold at slightly below the $11 mark.
Though it is impossible to precisely state what is driving up the value of Ethereum, ICOs can be truly regarded as one of the factors closely driving the cryptocurrency high. ERC20 Tokens are yet another critical innovation that can also be linked to the sharp growth the number two digital currency is currently experiencing.
ERC20 Tokens are basically streamlining ICOs trading on the Ethereum network by ensuring a set of excellent parameters are in place that promotes the liquidity of ICOs in the Ethereum network. Before the invention of ERC20 Tokens, ‘smart-contracts’ within the Ethereum network hit several bumps to implement. The case is currently different as ERC20 is encouraging uniformity across different smart contracts, reducing complexities, and enhancing the liquidity of tokens. This means that more tokens can be purchased hence the creation of more ICOs which significantly contributes to Ethereums upward trend.
Ethereum is easy to use
People are currently doing things in Etereum that they couldn’t achieve using Bitcoin. Without rubbishing the fact the Ethereum couldn’t be in existence without Bitcoin, Bitcoin is built around a restrictive development interface. Ethereum is making the lives of both developers and users much easier compared to Bitcoin. For example, what can take a developer two days to realize using Ethereum’s network can take months for a developer to achieve using Bitcoin’s blockchain. As a result of its welcoming nature to developers, Ethereum is enjoying the bleeding edge of the cryptocurrency world compared to Bitcoins among other altcoins.
The flippening watch
Flippening watch is the act of tracking the rise of Ethereum among other cryptocurrencies against Bitcoin. Currently, nearly all cryptocurrency users and other stakeholders have their eyes fixed on the Ethereum-Bitcoin flippening trends.
Various websites such as flippening.watch have dedicated their efforts towards observing the trends that Ethereum and other cryptocurrencies are making against Bitcoin. Looking at the prices of Ether between the beginning of 2017 and 2018 alone is an indication that the crypto is fast rising, the value of Ether rose by 100% between these periods.
Since market capitalization is the real reflector of how close, far or impossible the flippening is, the values of Ethereum and Bitcoin market capitalizations have been constantly narrowing towards each other with the former currently standing at 18.26% and the latter 34.72% of the total cryptocurrencies’ market capitalization.
When will an Ethereum-Bitcoin flippening happen?
The market capitalization of Bitcoin has never dipped so much in its history like in the beginning of 2018. Further reflecting back, 2017 had been an explosive year in the cryptocurrency world making it an indicator that we have more years of ‘altcoins’ ahead, with Ethereum remaining as the top altcoin and the strongest opponent to Bitcoin.
Despite the future looking bright for Ethereum, no one actually knows how close we are to the ETH-BTC flippening. Nevertheless, a keen observation of the figures which the two giants post in terms of market capitalization can be the only clue to whether or not we are soon to experience turntables between Ethereum and Bitcoin. It is the big thing to watch in the cryptocurrency world!
Ethereum-Bitcoin flippening is not an idea that can be thrown out of the window by investors and various stakeholders. It has a potential of taking place and occurring faster than expected or later than predicted. Being an interesting conversation among the cryptocurrencies communities, it is a game to keenly watch. You can learn more about ‘the real flippening’ which is between cryptocurrencies and fiat currencies by having a look at our other posts.
Thanks for constantly staying tuned for the latest crypto news with us.