Ethereum and its possible scenarios Ethereum and Bitcoin, the two largest cryptocurrencies, have been competing for the first and second places in market capitalization rankings for a long time. But what are the possible scenarios for the Ethereum currency this year 2022?
Possible scenarios for Ethereum
Now, with new bullish narratives emerging for Ethereum, many are speculating whether Ethereum can finally overtake Bitcoin in market cap and take the top spot.
Also known as “The Flippening,” Ethereum surpassing Bitcoin’s market cap would be a huge turning point in the cryptocurrency industry.
Flipping, or knocking out Bitcoin as the top digital asset by Ethereum (ETH), according to the crypto channel provider Coin BureauIt is an event that may happen this year.
Jay, a pseudonymous expert, reveals to his 1.91 million YouTube subscribers the two criteria that will determine whether a flip will happen in the coming months in a new video.
When it comes to when Ethereum will turn into Bitcoin, it could happen sooner rather than later.
This is mostly determined by the two variables.
- Approval of Bitcoin Spot ETF (exchange-traded fund)
- Ethereum’s transition from proof of work to proof of stake.
When will the Bitcoin coup happen?
In potential scenarios for Ethereum, both events could happen in the same month (the approval of the Bitcoin ETF and Ethereum moving from Proof of Work to Proof of Stake). The few pending Bitcoin ETF applications could be granted by March, not long after the merger Ethereum-Bitcoin Even if the merger is wildly successful, if a Bitcoin ETF is allowed to form, it will be difficult for Ethereum to catch up with Bitcoin (BTC).
If the consolidation occurs before a Bitcoin ETF is allowed, Ethereum may be able to briefly upend Bitcoin. The only exception is that if the Fed continues to raise interest rates, we may see a bear market, if the bear market is in full swing by the time the consolidation arrives. Ethereum will likely be unable to overturn Bitcoin due to lack of market momentum.
In contrast, it is difficult to imagine a bear market in which a Bitcoin ETF is approved, meaning that Ethereum is unlikely to upend Bitcoin in the near term.
The digital currencies, Bitcoin and Ethereum, are fundamentally different. Bitcoin is digital gold, while Ethereum (ETH) is digital oil. It doesn’t matter if the market value of crude oil inverts the market value of actual gold or vice versa, why should it matter when the oil and gold in question are digital? Both cryptocurrencies face unique growth hurdles, but both will eventually succeed in their respective fields.
