What is the Flippening? What does Flippening mean? When you get a word like that, you know it comes from the “new school” investors. Maybe it’s the meme-investors. Maybe it’s a new retire early term.
When Is The Flippening Going to Happen?
You just knew something like the Flippening would be about crypto.
Now, I don’t usually do a lot of crypto advice here because, honestly, I think everyone is still figuring it out, and I’m not trying to build a cutting edge crypto reputation or anything like that. However, I cannot resist a good acronym or term, and the Flippening is just too good to pass up.
The Flippening sounds sort of horror movie-ish, and you aren’t wrong, per se.
The Flippening refers to the potential future event when another cryptocurrency, likely ether, overtakes bitcoin in market capitalization. In other words, when bitcoin and ether “flip” places as the #1 and #2 cryptocurrencies.
Why Is There a Flippening?
You have to really dig into cryptonetworks and how they work to get a full answer, but the short-version is that a recent upgrade to the ethereum network makes it more likely that ether, ethereum’s native token, will increase in market capitalization at such a rate as to catch bitcoin.
Is The Flippening a Good Thing or a Bad Thing?
What will happen when, and if, the Flipping occurs is a something of a mystery. Since it has never happened before, there is not history to go on. And, since cryptocurrency valuations are a somewhat tricky combination of supply and demand, along with popularity and potential network affect makes it very hard to understand what traders and holders of crypto like ether and bitcoin would do in such an event.
In my opinion, which is only a guess at this point, the two cryptos would engage in a bit of a popularity contest where neither’s price is determined by the underlying, long-term demand. Eventually, this becomes something of a self-fulfilling prophecy, with the outcome eventually causing the long-term demand to shift.
The other possibility is that both either and bitcoin behave like standard currencies and flip back and forth, depending upon market conditions.
Either way, the flippening is much more interesting as a funny phrase than it is as a real world event.
By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications, where editors have ever shifting visions of what AP Style for crypto is. The material provided on this website is for informational use only and is not intended for financial or investment advice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Cryptocurrencies are very volatile and should be considered high risk for any investment or trading purposes.