Jun 13, 2017 10:43 AM EDT
Ethereum, Bitcoin Rivalry: Is Flippening About To Happen? [VIDEO]
Ethereum has been getting stronger by the day. Just a day before, its price closed at $400 and is narrowing down the gap between it and the Bitcoin market. Because of the recent turn of events, cryptocurrency experts and watchers are now expecting that a flippening is going to happen soon.
According to the latest development, Ethereum is just $10 billion away from reaching the Bitcoin market, which is approximated at $46 billion. One of the reasons for the recent price jump of ethereum is due to a jump in interest in South Korea, which is the largest ethereum market exchange to date.
Despite this anticipation, experts give some observations whether Ethereum will really upset Bitcoin as the most dominant Blockchain network. They also threw in some questions woth thinking over to give people insight before they invest all their money into ethereum.
First of all, a lot of Ethereum investors do not fully understand the philosophy, structure, purpose, and intricacies of the Ethereum network. Unlike Bitcoin and other altcoins, Etherr, which is Ethereum's native token, is not a cryptocurrency. Rather, it is a fuel that ensures the network is working.
Thus, those who invested in Ether favoring it over Bitcoin is wrong in their assumption. Yes, Ether settles faster than Bitcoin but it is not a cryptocurrency. Charlie Shrem, COO of Jaxx, tweeted that most Ether investors are lured into buying it because of the get rich quick offers by initial coin offerings or ICOs. In the process, they overlook the price.
Shrem also added that most ICOs lock the supply of Ether in the contract. As a result, the demands grow while the supply decreases.
So what's the conclusion?
Experts say that there is a possibility that Ethereum will surpass Bitcoin. However, investors should not regard the Ethereum market as something superior than Bitcoin. On the other hand, Bitcoin investors should not look down on Ethereum because it has a smaller market cap. Instead, it is better to utilize the advantages these two Blockchain networks offer. Then it becomes a win-win situation.
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