Will there be a flippening?

[AK47-]

If It ever happens (and I'm not saying It's going to happen) and Ethereum get a higher marketcap then bitcoin, what does it mean? It means nothing. Ether has much more supply then bitcoin has and the math is very simple for the marketcap, price * supply also, let's just compare the number of major services like Steam, Neteller, Skrill etc. that are actually accepting Ethereum? you probably won't be able to compile a list. from cryptocurrency 1200 ATMs around the world, how many of them accept Ethereum? probably nothing more then 5-10. while the remaining number is for bitcoin. I believe this is how the success of a coin should be measured and not by market cap only.

Exactly. Marketcap is not a factor to compare cryptocurrencies. Bitcoin has gone too far in other aspects such as acceptability at various platforms. Bitcoin has limited supply whereas Ethereum is unlimited. So I would say comparing bitcoin and Ethereum on the basis of marketcap doesn't makes any sense.

[hatshepsut93]

The last couple days, the price of ETH went through the roof, due to china having interest in the token, and alot of other big companies and banks aswell.

ETH is currently nearing the marketcap, and if it continues like this, it will pass bitcoin's marketcap before august 1st.


What will happen then? Do you guys think there is going to be a flippening? Will eth take over the role of bitcoin?

ETH is in a bubble similar to Bitcoin's bubble of 2013, it will crash hard sometimes soon. But Bitcoin has UASF ahead, and if for some reason it will turn out very messy, BTC might crash below Ether's marketcap easily.
Also, ETH is very likely to get official government and bank support in exchange for regulation and centralization and it's hard to predict how the majority of people will react, maybe they will see it as some guarantee of safety and worldwide adoption, or maybe it will be viewed as betrayal of everything what crypto stands for.

[Andy_K]

As I explained in a previous  post, the price of an altcoin does not show its importance. For the same reason, the marketcap, which is simply the price multiplied by the total supply is a bad indicator of the importance of an crypto-currency. We thus can not use Ethereum total valuation to argue that there is a flippening.

It seems to be a very difficult question, because I still could not understand What is the value of the crypto currency. If you take for example the dollar, then every dollar has its share of gold in the state's Gold Reserve. But Bitcoin, it's practically air, which costs fabulous money.

If you think every dollar in existence has it's share of gold in Fort Knox (or anywhere else for that matter), you're in for a shock. The dollar hasn't been backed by gold since the 1970's. What it is effectively backed by is the future economic output of the US - essentially the future labour of the people of America.

But again, if you calculate the number of dollars in existence and figure out how many each US citizen would have to back.... the numbers are just as bad as the gold.

The reality? The dollar is backed by nothing more than confidence. That's exactly the same thing backing bitcoin. The only difference is the dollar is more widespread, more entrenched in the system, and has more confidence. As for real value though? There's not much in it.

[lizardbtc]

If you think every dollar in existence has it's share of gold in Fort Knox (or anywhere else for that matter), you're in for a shock. The dollar hasn't been backed by gold since the 1970's. What it is effectively backed by is the future economic output of the US - essentially the future labour of the people of America.

But again, if you calculate the number of dollars in existence and figure out how many each US citizen would have to back.... the numbers are just as bad as the gold.

The reality? The dollar is backed by nothing more than confidence. That's exactly the same thing backing bitcoin. The only difference is the dollar is more widespread, more entrenched in the system, and has more confidence. As for real value though? There's not much in it.

Yes people give value to bitcoin same as we give value to USD, EUR , CNY and other currencies. The main difference is that nobody can generate more bitcoins as they have fixed cap amount. But when you look at ethereum for instance it has unlimited cap, they haven't put any. For the value to be stable when and if we get mass adoption we need fixed amount as we don't want the value of the currency that we use to decrese over time (which is exactly what is happening to fiat currencies as goverments tend to print out more money).

The main purpose of bitcoin is to be used as normal currency and most likley it is going into direction to be used as online currency. The other thing is that people see it as an oportunity to profit from it. Thats why most of alts came to life to try to profit from them. And because we are still in early phases bitcoin don't have a stable price to be used more as I am sure if the price was a bit more stable we would see more merchants accepting it.

[Andy_K]

For the value to be stable we need an inflation rate approximately equal to whatever fraction of coins are 'lost' in the system never to be recovered. Otherwise you'll get deflation. As to what the figure for lost cryptocoins is... that's anybody's guess.

[ImHash]

Is this $3000 the highest roof bitcoin could reach really? it's a damn thick wall and looks like it's there by dark magic or something. if we break the wall and move into the $3100+ areas then I assume the skies will be the limit for bitcoin, just a small push guys, stop selling under $3200 so in that way new investors be satisfied with paying $3100, if you put sell order for $2900 then people would've want a discount and will only buy for $2800 and lower.