Ethereum is unlikely to flip bitcoin unless this condition is met
Is this scenario merely hypothetical, or is it really pointless too?
Most of the crypto-space is divided between Bitcoin and Ethereum, and they could be forever. However, there is also an intense rivalry between the two camps.
The debate about Ethereum flipping Bitcoin is an especially intense one, with there being some people who will never give in to the reality of it. What is the reality you ask? Well, that is what we are answering here once and for all.
If you are unaware of what the “flippening” is, it is actually a hypothetical. One where Ethereum’s market capitalization finally overtakes Bitcoin’s market cap on the charts.
Now, according to many, if you simply take a look at the figures, it doesn’t look like it’ll happen.
In fact, this is true in many ways, especially since ETH’s market cap is still only 50% of Bitcoin’s.
Plus, this discussion would be more credible if their networks had been operating in a similar and competitive measure.
Bitcoin is primarily a store of value asset. On the contrary, Ethereum is delivering blockchain technology and decentralization into the hands of every person. Ethereum faces more competition to its network too, from the likes of Cardano and Solana, for instance.
In the past, the ICO boom did manage to push ETH close to BTC. However, at the moment, despite the surging DeFi and NFT space, it’s still far away since their growths are correlated.
Here, it’s worth noting that Ethereum can actually assert some dominance in the space. After all, 6.3% of its circulating supply is locked in ETH 2.0.
Now, even if we do consider the flippening for the sake of argument, ETH will only flip BTC if its growth trajectory manages to defeat Bitcoin’s.
In the previous cycle, BTC’s growth reached 29.5x at its top, while ETH’s hit 120x. Now, these are good numbers and if the past data is taken into consideration, it might seem that ETH can flip BTC, right?
Except with this cycle, if Bitcoin actually grows 29.5x then BTC would be twice the market cap of Apple and half of Gold’s. While ETH even at 120x would still only be equal to Apple’s MC.
ETH would need to grow by at least 400x in order to become a threat to Bitcoin.
On the bright side, because this growth is steady, the market for either coin won’t see any random crashes. But, as for now and forever, this discussion is pointless as Ethereum will not flip Bitcoin.