Today, I came across some very interesting news regarding Ethereum (ETH). The news is about bitcoin flippenning, and the rise of Ethereum. In the last one week, Bitcoin (BTC) dominance has stagnated at 37.1%, while that of Ethereum has rose by 1% from 17% to 18%. If this continues, Ethereum will dethrone bitcoin by the end of the year.
The idea that altcoins might be gaining value independent of Bitcoin is something that every crypto investor should rejoice in, and for good reason.
First, it is increasingly clear to many that there is a lot of manipulation around the price of bitcoin. Take the MtGox dump for example. In the recent past, you may have noticed that any time the price of bitcoin attempts to rally, the MtGox trustee dumps coins in the market. There are other whales who are also controlling the price of bitcoin in one way or another too. This has had the impact of pushing down the value of Bitcoin (BTC), and by extension the value of the altcoins as well.
Unfortunately, this is pulling down many altcoins that have good news coming out daily, and in the process discouraging investors from putting in their money in the crypto markets. In essence, the moment the flippenning happens and altcoins start getting valued independently of bitcoin, we are likely to see a massive surge in values. This could actually mark the beginning of the biggest explosion of the cryptocurrency market to date. For instance, projects like Ripple (XRP), Tron (TRX) and Ethereum could rise exponentially. That’s because without correlation to bitcoin, any milestone that these cryptos achieve would be valued directly by the market. In such a scenario, a crypto like Ripple (XRP) that has seen massive rates of adoption by the banking sector would easily be valued in the double or even triple digit within months.
The second reason why investors should rejoice to the reality of Bitcoin (BTC) flippenning is the fact that bitcoin is increasingly lagging behind other cryptos in terms of its technical capabilities. Its transaction speeds are slow and costly. It’s also has serious scalability issues.
At the moment, there are many altcoins that significantly outperform bitcoin on these areas, and there is no reason why their valuations should be pegged on the value of bitcoin. If anything, pegging them on bitcoin only creates an imbalance in the market, where crashes will continue to be the norm. However, once the flippenning happens and altcoins reflect a valuation that is outside that of bitcoin, the crypto market is bound to stabilize. It’s this stability that will play a role in driving in big money into crypto even without the need for government regulations.
News of flippenning happening should, therefore, be taken with enthusiasm. For a crypto like Ethereum (ETH) that is entrenched in the smart contracts space of blockchain, we could see it hit sthousands of dollars in the near future. Just hope that this emerging trend continues to gain momentum.