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September 22, 2020
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Will Ethereum overtake Bitcoin as the world’s leading cryptocurrency?

It is always worth remembering that there is much more than price to take into account when we talk about a crypto project

Since it was launched to the public in January 2009, Bitcoin has been the main player in the cryptocurrency market. It was also the first decentralized cryptocurrency, which means that its advantage comes from being the first product to hit the market.

Since then it remains the most popular, most commented on, most valued and most capitalized cryptocurrency on the market. Despite this, there are several intentional and accidental forks that have created various versions of Bitcoin, supposedly with benefits around the speed of transaction processing. However, Bitcoin’s original domain remains unchallenged.

In 2017 and early 2018, Litecoin appeared to be a competitor to bring Bitcoin down, but has since seen its value and market capitalization drop dramatically as investors looked at other tokens.

Hit enter for Ethereum

Another challenger was Ethereum, a cryptocurrency that also provides a platform for decentralized application execution. It even serves as the backbone of other cryptocurrencies, including rising stars like MakerDAO.

It peaked at $ 1,386 for a single ETH in January 2018, but dropped to $ 83 in December 2018. It did not recover from that, having settled around the $ 150-200 mark last year.

However, this did not cause cryptocurrency enthusiasts to abandon Ethereum. currently many still want to buy Ethereum in addition to Bitcoin or as an alternative to the market leader.

The “Flippening”

During its meteoric rise, many cryptocurrency commentators were predicting an event they called “The Flippening”. That would be the point at which Etherum would surpass Bitcoin as the most valued and capitalized cryptocurrency in the world.

Articles on the topic were published in the CoinDesk and even at Forbes, discussing when it could happen and what it would mean for the cryptocurrency market. One company even created a website called Flippening Watch to track the price of altcoins against Bitcoin. Since then the site has been in a state of disrepair, with some features being broken and its blog not being updated since 2017.

This is a very visible example of the exaggerated hype around “The Flippening” that ended up not materializing.

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Market capitalization is irrelevant

In traditional investments, market capitalization is important. It shows the total value of a company if all of its issued shares were sold at the current price. However, for a cryptocurrency, this is a meaningless metric. After all, there is no similar measure for other currencies or even gold.

Therefore, it is difficult to even establish a metric for how one cryptocurrency can overtake another. However, if we look at market capitalization, there doesn’t seem to be much chance of a “flippening” happening anytime soon.

More for Ethereum

In addition, Ethereum has more than just being a cryptocurrency. It is a large computer network that can be used for decentralized applications and even allows developers to create their own cryptocurrencies on their blockchain.

Therefore, it already has value for the world of cryptocurrencies and blockchain, regardless of its selling price.

Will it ever compete with Bitcoin for the price of fame and market value of the token? Probably not in the near future. This matters? Probably not.

Source: The Merkle

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