Since its inception in 2009, Bitcoin has been the most valuable crypto asset in terms of market value, surpassing Ethereum.
Considering the thousands of additional cryptocurrencies that have come into existence over the years, is it possible that any of them could ever surpass Bitcoin (BTC) in terms of market capitalization?
According to Daniel Strachman, managing partner of A&C Advisors LLC, the cryptocurrency market is currently at the top half of the second inning. “At this point, it appears that Bitcoin will remain at the top, but given how the Red Sox have struggled this season, we just don’t know,” he said.
Strachman’s background spans decades of financial activity as well as the publication of numerous books. According to him, “it all boils down to market reaction and investor interest.” It is true that there has been a lot of chatter about Ethereum exceeding Bitcoin, and that is true, but we need to wait a few more innings to see what will happen.
The cryptocurrency sector has gone through several market cycles, each of which has seen the industry rise in size. CoinMarketCap, which categorizes cryptocurrencies according to their market capitalization, is a popular source of information in the digital asset sector. Cryptocurrency assets have soared in value in terms of dollars.
Almost all of the crypto assets included in the top 100 on CoinMarketCap have market capitalizations in excess of $1 billion, indicating the industry’s continued development and significance.
Since Bitcoin’s start more than a decade ago, technological advancements have been substantial. Discussions and comments about a “flippening” — industry jargon for a separate cryptocurrency surpassing Bitcoin in terms of market capitalization — have surfaced from time to time in the cryptocurrency community.
What factors could lead to another crypto asset surpassing Bitcoin in terms of market capitalization?
“Utility in the market, as well as investor adoption and interest, will be the factors that propel one crypto asset, or perhaps two, to surpass Bitcoin,” Strachman predicted.
Bitcoin has risen to prominence in the public’s consciousness. The asset has a fixed and comparatively limited quantity, as well as a devoted following in the cryptocurrency business, particularly among a group known as “Bitcoin maximalists,” who believe that Bitcoin is the only cryptocurrency that will be successful in the long run.
When asked about the chance (or lack thereof) of a Bitcoin flippening and the significance of such an occurrence, Strachman responded, “The crypto market is an asset class that is here to stay.” He went on to say:
“It is not going away. If a crypto asset surpasses BTC it will be because of market forces both investor interest and market utility. If you look at the top five companies by market cap in 1980, they were Exxon, GM, Mobil Ford and Texaco, today they are Apple, Microsoft, Google, Saudi Aramco and Amazon – things change and that is ok because that is how free global markets work.”
Even though Ethereum (ETH) has been mentioned as a potential contender over the past many years, determining the chance of a flippening is difficult to predict.
