The Flippening

The “flippening” is a hypothetical event in the cryptocurrency world in which an altcoin becomes more valuable or popular, and consequently more widely-used than the Bitcoin (BTC) network.

The most widely recognized instance of this phenomenon was the trajectory of Ethereum (ETH) and the potential for its market capitalization to overtake that of Bitcoin.

To date, this event has never happened, though was widely speculated towards late 2017.

However, the term is still used to describe a hypothetical moment when Ethereum overtakes Bitcoin as the largest cryptocurrency by market capitalization.

The market capitalization of a cryptocurrency is abstractly defined by its respective circulating supply, multiplied by its current market price.

At the time of writing, Bitcoin is ranked number one in terms of market cap, followed by Ethereum.

Should the flippening ever transpire, be it by Ethereum or any existing or future altcoin, it would reflect a monumental accomplishment for any coin.

As the first and oldest cryptocurrency, the Bitcoin network has reigned supreme since its inception.

Will the Flippening Ever Happen?

In retrospect, the trajectory of Ethereum certainly was capable of performing this feat, overtaking the market cap of Bitcoin in 2018.

While BTC has always been the number one cryptocurrency by market capitalization, its market dominance has eroded significantly in recent years.

This decline was particular visible during the middle of 2017 and the first quarter of 2018.

During these periods, many Ethereum proponents were hoping for the flippening to happen.

Ethereum endorsers pointed towards the crypto’s greater flexibility and its ability to write smart contracts.

While these advantages do exist, they were not enough to ultimately hurdle Ethereum over Bitcoin, though this does not preclude a future occurrence.