As the cryptocurrency market is evolving day by day, we notice the creation of new lingo, terms that are coined to a certain event, token, or even a state of mind. FUD, HODLER, FOMO, and many other terms came to existence from the cryptocurrency community. You would never hear a trader or investor in Wallstreet saying to a Billion dollar investor to HODL.
Today, we talk about the famous term called “Flipenning” that is recently brought back to the discussion tables in the cryptocurrency sphere.
What the hell does “Flipenning” mean?
Before we delve deeper into how this term came to be, we need to understand first the market dynamics of the cryptocurrency market.
The cryptocurrency market is made up of many cryptocurrencies, with the very first one being Bitcoin. After the latter, many coins started to appear with different usage purposes and different infrastructure. Many websites compile all cryptocurrencies and place them in a table, sorted by market capitalization.
Now you may be asking: What is Market Capitalization? Well, it is a number that shows how big a certain cryptocurrency is. It is calculated by taking the current price of a coin and multiplying it by the number of coins in circulation (just like stocks). This metric shows how big and important one coin is. When they talk about the whole cryptocurrency market capitalization, they talk about the number that sums the market capitalization of ALL cryptocurrencies.
2- BTC Dominance
We hear a lot about a dominance percentage in the news, and recently this dominance is dropping. BTC dominance shows the percentage of BTC Market Cap relative to the WHOLE Crypto Market Cap, to show the percentage of BTC cap to all other crypto Market Cap. So far, BTC dominance was always greater than 60%, a fact that explains why a move in BTC prices is affecting ALL other cryptocurrencies.
3- The Flippening
Enter the Flippening, a term that sounds like a movie title. Bitcoin has been always known to be the dominant cryptocurrency in the market, having the largest market capitalization, with Ethereum coming at number 2.
The term Flippening comes from the word flip, and was given in 2017 and refers to the possibility of the market capitalization of Ethereum (ETH) overtaking the market capitalization of Bitcoin (BTC). This of course suggests that Ethereum would be the more valuable coin technology-wise AND usage-wise.
Why would Ethereum be MORE important than Bitcoin?
Well, there are many technical and fundamental ideas behind this debate, and we’ll cite them below:
- Highest attention from large investors
- Simple and stable
- Limited supply
- Smart contracts
- More developments
- Technical aspect of how blocks are created
Who’s going to win?
It all depends on technical and market developments and depends on each individual investor. Today, BTC dominance is decreasing day after day, signaling that altcoins (including ETH) are making higher moves.
Stay Ahead, Stay Updated
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Please also note our Non-liability disclaimer.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Bitcoin News
El Salvador President Nayib Bukele announced that each adult El Salvadorean would receive in $30 in the official Chivo wallet …