- People active in bitcoin and altcoin circles are often referring to a trend known as “the flippening”. it is evident the cryptocurrency landscape is undergoing some major changes, even though some users remain oblivious to what is going on. Now is a good time to explain the flippening and how it can affect bitcoin’s position as the top cryptocurrency in the next few years.
WHAT ON EARTH IS THE FLIPPENING?
Truth be told, it took some time to figure out what people mean by referring to the flippening. Consumers, investors, traders, and speculators have shown an appreciation for bitcoin these past few years, despite the cryptocurrency being far from perfect. Any other currency, or altcoin if you prefer that term, seemingly derives its value from being paired to bitcoin’s price. Over the years, this caused the value of altcoins to go down if bitcoin’s price took a hit.
That being said, things are changing in the world of bitcoin and cryptocurrency. Bitcoin “maximalists” have held onto their BTC supply in the hopes of everything turning out to be alright. So far, there has been no evidence proving these people wrong, yet that does not mean bitcoin is in a good place right now. Particularly speculators are actively diversifying their portfolio by investing in altcoins, as they grow concerned over bitcoin’s scaling issues.
Altcoins, on the other hand, have always been looked at as “second-rate projects” by bitcoin maximalists. One could argue there was an air of disdain between most pro-bitcoiners and those whose see the merit of alternative cryptocurrencies. Multiple years of friction have caused a paradigm shift in the cryptocurrency world, an effect known as the flippening. To be more specific, it is evident most altcoin traders no longer base individual coins’ value on the bitcoin price.
As a result of this paradigm shift known as the flippening, it is very well possible bitcoin may not be the dominant cryptocurrency in the future. Or to be more precise, it may not hold such a big lead over other cryptocurrencies moving forward. Bitcoin’s share of the total cryptocurrency market cap continues to dwindle, allowing altcoins to rise in value, regardless of what is happening to the bitcoin price. Until a year or two ago, such a change seemed impossible, yet the charts speak for themselves.
This does not mean people will lose faith in bitcoin by any means. Instead, a more competitive cryptocurrency ecosystem will be created, and altcoins are expected to significantly rise in value over the next few months and years. Ethereum, Monero, Dash, Factom, and others are all trying to find their place in the world right now. Nearly all of these currencies have risen in value despite bitcoin’s price either stagnating or going down. While it is possible this is just a temporary change, the flippening is not a trend that should be ignored by any means.
Leading the charge during “the flippening” is Ethereum. Several dozen ICOs are offered on top of the Ethereum blockchain, rather than using Bitcoin’s technology. It is evident Bitcoin will not be suitable for every project one can think of, or at least not in its current state. Competition in the cryptocurrency industry can only be a good thing. The flippening indicates this shift towards a more competitive industry in which bitcoin will not necessarily be the center of focus any longer.