What is the Flippening? Will Ethereum Take Bitcoin’s Number One Spot?
Ethereum’s Rally From $10 to $400 in Six Months!
The last six months have been a dream for Ethereum investors and
enthusiasts. From a turbulent 2016, Ethereum has entered 2017 bullish
and growing from strength to strength.
At the start of the year, the tokens of the innovative application
building platform traded for around $10. Today, we see Ethereum being
traded for around $377, with a market capital of over $34 billion! In
contrast, Bitcoin’s market capital is $42 billion.
This recent surge in capital and trading price could be put down to
numerous reasons. There’s the newly formed Enterprise Ethereum Alliance,
ICOs, new capital from investors both corporate and private alike,
growing media attention, and the possibility of Ethereum overtaking
Bitcoin, which many have dubbed “The Flippening.”
**The Flippening **
As the community watches with curiosity and excitement, many have
titled this historic event as “The Flippening,” the moment where
Ethereum surpasses Bitcoin in market capital and becomes the number one
cryptocurrency.
Ethereum’s true purpose enables it to become an application builder.
Developers and users alike can benefit from Ethereum and literally
create any type of program using Smart Contracts. The ETH token we see
gaining so much in price is just one of the many use cases for Ethereum.
Many new blockchain-based start-ups use Ethereum’s Smart Contracts to
build applications with. They launch an ICO, which is similar to
fundraising or crowdfunding, and then they release tokens back to the
investors.
Because of its seemingly limitless potential, many have said “The
Flippening” was inevitable and it was only a matter of time before
Bitcoin becomes the next Myspace. However, the process of Ethereum
surpassing Bitcoin may not be so easily achieved. Despite the gap
thinning between the two cryptocurrencies, Bitcoin’s market capital is
still growing, along with its price, which reached the $3,000 region for
the first time last week.
We could see several “Flippenings” between the two cryptos over the
next few months as they battle for the sought-after number one spot. It
may not be as easy as many think to overtake Bitcoin!
ICOs Boosting Ethereum
There are several variables that could be looked at as the reason
behind Ethereum’s steep surge. One of these is the popular ICO
phenomenon, which has now become the normal way for new blockchain
start-ups to raise capital for projects. As the majority of these ICOs
are now using Ethereum’s Smart Contracts to build applications, it has
directly influenced Ethereum’s price and market capital.
As new capital pours into the Ethereum economy, the price and market
capital surges. On the days of new ICOs launching, the Ethereum price
rises, something that seems to have no end in sight as more teams of
developers seek to start innovative new projects.
Bitcoin Hasn’t Slowed Down, But it is Holding Itself Back!
If Bitcoin had SegWit, it would be worth more. Everyone can agree
with this, as SegWit activating on Litecoin injected much needed life
into the old altcoin.
With the uncertainty looming around Bitcoin, many of the altcoins
(including Ethereum) have been used as a hedge against any worst-case
scenarios in the Bitcoin community, such as a hard fork splitting the
economy into two.
Despite this, Bitcoin’s growth, which may not be as dramatic as other
alternative coins, has given investors huge returns, making traditional
savings accounts look meager. This time last year, Bitcoin traded in
the $700 region.