What is the flippening and why does it matter?
Pancakes, Sushi, Flippening, what the hell are all these terms and what do they have to do with money. So the Flippening is the term used to refer to theoretical time when the market cap of Ethereum overtakes the market cap of Bitcoin.
Right now, as I write this article Bitcoin is at about $36,000 and Ethereum is at $2700. The market value of Ethereum is about half. Ethereum has no hard cap so new coins will continue to get mined. In addition, Ethereum continues to rally. At the rate we are going, Ethereum should overtake Bitcoin at some point.
Most people think that the flippening is actually a very bullish sign for Bitcoin. If Ether tops Bitcoin, look for a potential rally in Bitcoin to reassure its dominance as the ultimate digital store of value. With such crazy price increases and movement in 2021, I think the flippening could come within the next 12 months. A big event like Ethereum 2.0 developing further or if Ethereum was to stop proof of work. One of the biggest complaints about Bitcoin is how much electricity it uses for mining. Once Eth becomes completely 2.0 there will be no more computers mining blocks.
Ethereum will become the main currency of smart contracts, the largest store of value, and once layer 2 becomes practical, the gas charges and speed will be similar to Binance Smart Chain. Ethereum isn't there yet, but it has the making of being the most powerful cryptocurrency in the world with the largest value.