There has been a lot of chat about about the “flippening” on the internet, and while some people are convinced it will happen, I disagree.
What is the “Flippening”?
Never heard of the “flippening?” That’s alright, I had not also up until a couple of months ago. The “flippening” is a speculated event where another altcoin surpasses Bitcoin’s market cap and takes the title of the #1 cryptocurrency.
Of course you can never be sure, but I am pretty well certain that this will not happen; at least not in the remotely near future anyway. Below I have 4 reasons why I believe this to be true:
1 Transaction Prices
Probably the biggest reason why people speculated the flippening is because of the high transaction prices of Bitcoin compared to other cryptocurrencies. While it sounds like a legitimate reason for the community to migrate to another crypto, it’s flawed logic. You see, if everybody migrates to another crypto then that crypto becomes bogged down and just as congested as Bitcoin is now.
2 We would all have to agree on a “better” crypto
Even with transaction prices out of the way, you might be thinking “what if another crypto comes along with better features?” Problem is, every feature has it’s pros/cons, and since the community can never agree on anything (think SegWit, that took 6 months and had virtually no drawbacks); how do you think the community would agree on changing to a different cryptocurrency altogether. Besides, if a feature is agreed on by most everybody it will be implemented into Bitcoin.
Bitcoin has it’s uses, but at the moment most transactions are speculation based. The numbers I have heard have ranged from 70%-80% being speculation, while the other 20%-30% is actually part of a normal purchase. While 20%-30% is low, most altcoins (with a few exceptions) are probably 99.9%+ speculation. This creates high volatility and even if it appears to rise it could very well fall just as fast. That is not a good storage of value.
4 Mutually Assured Destruction
If Bitcoin was replaced it would create chaos in the market and everything would suffer immensely. Most people would probably cash out, and outside investors coming in would be nearly non-existent. This is a good deterrent for anybody trying to organize a mass migration to a different cryptocurrency, as it would probably result in everything being worthless (or at least worth a lot less).
Again, while nobody can be right 100% of the time (and trust me, I’m no exception to that rule); I highly doubt we’ll see the flippening any time soon, mainly for the reasons stated above.