"The flippening" sounds like a horror movie, yet it's a hot topic in crypto circles. Now that Ethereum is near to its proof-of-stake change, it's garnering more attention than ever, especially amid fears it will become a deflationary asset.
This is a controversial topic, especially as "the flippening" might indicate several things. There's universal consensus that Ethereum will outperform bitcoin on several criteria, but there's dispute over market capitalization.
Commentators believe that even if the flippening happens (at least partially), it won't weaken Bitcoin's reputation as a store of wealth.
What is the flippening?
Since 2017, some have spoken about Ethereum "flipping" bitcoin.
Ethereum would need to double in value to flip Bitcoin in terms of marketcap.
Other industry numbers are divided. They say the flip is improbable in terms of market capitalization, but feasible.
Ethereum will be deflationary after the Merge, and so it will have the same scarcity that drove bitcoin soar. That alone makes the flippening a possibility.
If Ethereum overtakes Bitcoin, what happens?
It's our opinion that Ethereum's rise in value wouldn't hurt Bitcoin since the two perform different economic roles. Bitcoin's proof-of-work is impenetrable and secure. This could be very valuable in the future. Bitcoin's worth stems in its potential as a quasi-gold standard and store of wealth.
Whereas, Ethereum supports Web3's DeFi and NFT ecosystems, among other related platforms.
Others argue that proof-of-stake isn't as secure as proof-of-work, therefore the Flippening will never happen.
Crypto ecosystem impact
A flippening may not undermine Bitcoin's position or value proposition, but it might affect the crypto ecosystem.
The flippening would be a net good for crypto since it would imply greater Ethereum usage and acceptance. Since the crypto market rises and falls as a whole, it would likely boost usage and adoption.
However, even as ethereum becomes more popular, some parties will always hold their profits in native bitcoin for additional security. Article kindly provided by designerlistings.org