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Bitcoin Flipping has always been one of the top debates among BTC investors. If you are also a BTC investor, you will surely be aware of this term. It is the term used to represent a fall in the BTC market due to its falling price compared to Ethereum. In such cases, there is a risk that may be a signal of any significant possible loss. So, you should be aware of ‘what is Bitcoin flipping?’ to overcome it effectively. To facilitate you, we have solved your query in this article. Also, we have given some reasons that may lead to the BTC flipping. Let’s dive deep to explore all about this risk.
What is Bitcoin Flipping?
Basically, the term flipping is used as a symbol for the dominance of ETH over BTC. More precisely, it represents the risk of exceeding the marketplace of ETH as compared to the BTC.
For example, if BTC is falling at $2500 but at the same time ETH is at $3000, it is Bitcoin Flipping.
But it is just a prediction or risk till now and never seen in reality. However, many cryptocurrency experts suggest that the marketplace of BTC will be taken over by some other cryptocurrency like Litecoin, ETH, or ripple. So, it is crucial to be ready for any change in market priorities.
Major Challenges to BTC Market Place
Some certain issues may contribute to the BTC flipping. Here are some of the major challenges faced by this well-known and universally used cryptocurrency.
Increase in Transaction Fees
The foremost thing that may be a reason behind this BTC flipping issue is the ever-increasing transaction fee for this currency. Initially, this cryptocurrency was introduced as a fee-free trading source, but with the increase in its popularity and successive successes, its transaction fee has been increased. These fees are not static; instead, they oscillate day by day and fluctuate more or less with time.
Depending upon the transaction amount, its fees may vary from $4 to $42. It is a reasonable price that is deducted in the form of fees. It varies with the variation in the transaction volumes.
Decreasing Transaction Speed
Another challenge to the BTC market is slowing transaction speed. It is due to the huge transactions on the same blockchain networks at the same time. In the last few years, the blockchain network’s speed has been just 1MB at a time.
You have to upgrade your BTC software to increase your values. This up-gradation is crucial to speed up the transaction process and to maintain the transaction fee structure. After upgrading your software, your block size may increase up to 2MB. This up-gradation is termed SegWit2x and is very effective.
Volatility or uncertainty is one of the major causes that points towards the risk of BTC flipping. It may cause the currency value to crash up to a dangerously low level.
You can see back to the recent uncertain prices that confuse the investors a lot. For instance, in Q4 of 2017, there was a reasonable increase in its prices, while after some time, there was a drop in prices up to $10000+ per coin.
With such volatility, it will surely be a challenging task for BTC to become a successful trading source.
Great Competition on the Market
With an increase in its value, BTC competes with many newly introduced cryptocurrencies. Now, there are hundreds of such payment resources that are in constant competition with Bitcoin. Some well-known names include ETH, Litecoin, and ripple.
Ether is one of the rising rivals of BTC. With such tight competition with many other trading channels, it’s hard for BTC to maintain its value, though it’s still on the top. This thing may confuse the BTC owners that may lead to the BTC flipping.
The introduction of new cryptocurrencies is no less than an alarm for Bitcoin’s market value. However, to date, BTC is at the top of the market. Bitcoin is built to stay and compete with newly introduced cryptocurrencies for a long time, but you should always be prepared for any change in the market strategy for successful trading.
Hello! I’m Annan Bhadra, a financial specialist and passionate writer. I have always been captivated by finance and its potential to empower individuals and communities. My academic journey began with an O level from the British Council, where I studied Accounting and Commerce. I then pursued my A level, focusing on International Business, also at the British Council. My passion for understanding the global economy led me to East West University, where I earned a degree in Economics. These educational experiences gave me a strong foundation in the financial world and fueled my desire to help others navigate their financial lives.