Ethereum Can Surpass Bitcoin!
Ethereum can beat Bitcoin to become the biggest cryptocurrency. But how? It is possible through an event called Flippening.
Flippening is a theoretical event when Ethereum surpasses Bitcoin in market cap to become the biggest cryptocurrency. Ethereum fans coined this term because they think Ethereum is better than Bitcoin.
Is Flippening possible in the future?
Market cap will decide the Flippening event.
Market Cap = Number of coins in circulation supply (x) price of one coin
Given this situation, Ethereum (ETH) will either need faster price growth or a higher circulation supply than Bitcoin (BTC) for a higher market cap.
Bitcoin has a maximum supply of 21 Million, whereas Ethereum has an infinite max supply. Hence, the number of ETH in circulation will be higher than BTC eventually. However, recently Ethereum underwent the Merge upgrade that shifted it to proof of stake consensus. This upgrade will probably motivate ETH holders to stake ETH tokens, which might reduce its circulation supply.
It can give two outputs:
- Fewer ETH in circulation might cause a good hike in ETH price that will help it beat the market cap of BTC.
- Since the popularity of BTC is way higher, ETH might only be able to beat its market cap after getting a good price hike.
If we take the case of Bitcoin, limited supply is its biggest USP. From an already scarce supply of 21 million, 20% of the total BTC is already lost, and nearly 5% is locked in its creator, Satoshi’s wallet. Only 10% of BTC is remaining to mine. BTC supply will also keep lowering every four years through its halving event. Due to all these dynamics, BTC demand in the upcoming decades will certainly increase, making it hit new all-time highs. In this case, Flippening will not occur.
As we discussed above, both Bitcoin & Ethereum have their advantages and disadvantages. According to the current market scenario, Flippening is less likely to happen in the next few decades, but nothing can be said surly in this unpredictable crypto market.
NEWS
Polygon Network Hit New All-Time-High Record in Unique Addresses After Nike Partnership
Bank of Japan to Roll Out CBDC Experiment with Major Banks in 2023
Cardano to Launch New Algorithmic Stablecoin in 2023
Institutional Crypto Allocation has Increased Over the Last Year: Survey