Equipment news Flippening: Can Ethereum Beat Bitcoin in the Next Few Months?
Published on 15.08.2022 at 16:15
Since 2015, a cryptocurrency called Ethereum has risen to 2nd place in the cryptocurrency market capitalization ranking, just behind Bitcoin. As the Merger approaches, many are questioning Ethereum’s ability to overtake Bitcoin in the near future.
Coup: Ethereum outperforms Bitcoin
The day when the first cryptocurrency is overthrown is called flipping. Taken from the English “flip”, an expression regularly used in the cryptosphere denotes the moment when Ethereum will reverse bitcoin. Just like the traditional stock market, the crypto ecosystem is subject to classification.
Divided into two categories: Bitcoin and Altcoins (alternative cryptocurrencies to Bitcoin), virtual currencies are ranked according to their market capitalization, or market capitalization in English. It is these data that show the total amount of money invested in cryptocurrency. To determine the importance of one cryptocurrency over another, we can perform a simple calculation:
- 19,121,962.00 BTC x 23,597.68 EUR = 451.23 billion
- (Cryptocurrency Traded Supply x Price = Market Cap)
So we know that the market capitalization of Bitcoin is currently 451 billion euros, which is almost double the market capitalization of Ethereum, which has increased to 226 billion. As such, Ethereum still has a long way to go to catch up with bitcoin, which is considered digital gold.
Merge Raise Event for Ethereum
For some time now, Ethereum enthusiasts have been excited about The Merge update. The second largest cryptocurrency has finally announced the launch schedule for the long-awaited update… With the arrival of The merge in mid-September, the cryptocurrency should attract new investors allowing price gouging.
This update will transition the Ethereum blockchain from Proof of Work (PoW) to Proof of Stake (PoS). In other words, this development should make Ethereum more environmentally friendly as it will no longer require graphics cards and thus electricity to mine. Along with proof of stake, mining can also make Ethereum even more attractive. If mining requires a large amount of ethereum, we assume that some may switch to buying, a phenomenon favorable for the rise in the price of ethereum.
However, I am not sure that this is enough to overtake Bitcoin. Indeed, the event will not necessarily make people happy, like first-hour Ethereum miners who risk going into bitcoin or other cryptocurrencies…
The unbeatable bitcoin?
Whether this will ever happen is unclear, but flipping is an eternal debate between Bitcoin maximalists and Ethereum proponents. On the one hand, Bitcoin fans believe that it cannot be dethroned as the currency has become a safe haven compared to other cryptocurrencies.
Indeed, Bitcoin stands at the origins of the entire cryptocurrency ecosystem. As a result, it reigns supreme there, as several new cryptocurrencies link to bitcoin through an exchange pair. Thus, in order to buy newly issued virtual currencies, it is sometimes necessary to have BTC.
In addition, Bitcoin carries different values and ideological principles from Ethereum. By advocating a fully decentralized system, Bitcoin convinced a few libertarian followers to seek independence in their online transactions.
On the other hand, Ethereum does not follow the same ideas. Unlike Bitcoin, the cryptocurrency is not as decentralized as its CEO is known to everyone: Vitalik Buterin. However, its decentralized autonomous organizational system still allows for global consensus in decision making. With its progressive aspects, Ethereum has become an ever-evolving network offering many opportunities for Ethereum holders. For example, ERC-20 smart contracts are the source of virtual certificates, better known as NFTs (non-fungible tokens).
This plurality of opinion marks a long discussion. At the moment the odds are in favor of Bitcoin in terms of its capitalization, only nothing is decided for the coming years… One thing is certain, in the event of a turnaround of the first cryptocurrency, the entire sector will find it upset, as Bitcoin currently makes up almost 50% of the total capitalization cryptocurrencies.