The Flippening [Update]

JC Parets
August 20, 2022

Is Ethereum going to be worth more than Bitcoin one day?

Yea probably.

I think so.

And remember, I really don't care either way. I would just like to be on the right side of the trend, that's all.

In this world of crypto, especially in Bitcoin and Ethereum, people are very passionate about their opinions.

At Allstarcharts we are not.

All I know is that Bitcoin is now worth around $400B in market cap while Ethereum is closer to $200B. So ETH has some work to do.

And when I look down at this base, in my experience, this is precisely the work that it's needed to be doing...

Look at the size of that base?

"The bigger the base, the higher in space", am I right?

It's hard to make a definitive bet on "The Flippening" right now. But I certainly would not bet against it. Not with a base like that.

I'm definitely leaning towards a historic breakout in ETH vs BTC.

If we're above .08 on the ratio, I would feel comfortable long the ETH/BTC cross.

But for me, I try and think about what the world looks like with ETH as the dominant crypto. How many other protocols and crypos built on top of ETH will be thriving?

I'd argue probably a lot of them.

And taking it one derivative further, how are NFTs doing?

Probably pretty good.

Now, bringing it back to equities, if all these altcoins are just more growth stocks, particularly software companies, how are those types of sectors doing in the stock market?

I'd say they'd likely be doing well.

So I think there are a lot of implications here for the Flippening, whether you trade cryptos or not. The flippening is likely to have a much larger impact on our portfolios, and our lives, if it in fact becomes reality.

Rather than expressing the trade by literally buying ETH and shorting BTC, I find value in thinking through what that environment looks like.

You're welcome to express that trade if you'd like. Go for it. But for me it's bigger than that.

I hope this gives you some further insight as to how we approach "The Flippening".

Flip it.

Do it.

JC

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