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Ether Could Usurp Bitcoin as Most Valuable Crypto by Year End: Expert

CryptocurrencyMay 14, 2021 05:17PM ET
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By Yasin Ebrahim

Investing.com – Ether is up more than four-fold since the start of the year, and it won't be long before it usurps bitcoin as the most valuable cryptocurrency in a "flippening" event that some say could come as soon as the end of the year, or early 2022.

ETH/USD rose 13% to $4,063.2, adding to gains of about 450% for 2021 so far. With a market cap of $463 billion, ETH needs to double in price to flip BTC, which has a current market cap of $923 billion.

"I would not be surprised if the flipping didn't potentially happen in the late 2021, or early 2022," Seamus Donoghue, vice president strategic alliances at Metaco, said in an interview with Investing.com on Friday.

"The investment thesis around bitcoin as 'gold 2.0' or a store of wealth is interesting, but it is a $10 to $12 trillion opportunity," Donoghue added. "A potentially much bigger opportunity is the reinvention of capital markets […] and that's a bit more about smart contracts, and Ethereum has been a dominant protocol in that space."

The talk of flippening isn't new. In the previous crypto bull run, ether had its sights on the number one spot, though ultimately – together with BTC - withered away as a bloody crypto winter set in and wiped off billions from the overall cryptocurrency market.

But promising signs, though very nascent, that Ethereum, the network behind ether or ETH, will play a big role in tokenizing capital market assets -- converting assets into a token that can moved and stored onto the blockchain -- has some talking up the prospect of a flippening in the months ahead.

Ethereum's reputation as the future platform that could form the building blocks of this new economy has been growing.

In April, the European Investment Bank raised €100 million by selling a two-year digital bond using Ethereum's blockchain technology.

"This was notable not because it's the first tokenization, but it's the first by a triple A name, Donoghue said. "It [offers] a hint of what the future is and this could operate at scale, with much lower costs, less intermediation, and more transparency, enabling issuers to be much more responsive to [changing] market conditions, which is a game changer."

But the journey to potentially reinvent capital markets - by converting and moving them onto the blockchain - still has a long way to go. There are a myriad of frictions or kinks on Ethereum's platform or network that need to be worked out.  

"One of the problems with moving markets to a tokenized format is creating secondary market liquidity for tokenized assets. "But if that can be resolved possibly in the next year and a half, we could see a rush of assets being tokenized," according to Donoghue.

Other teething problems on Ethereum including speed and efficiency woes, high transaction, or "gas" fees that are stifling scalability will also need to be address. That is widely expected to be solved in an upcoming upgrade to Ethereum 2.0.

It is still uncertain as to when the upgrade to Ethereum 2.0 will be completed, with some touting early 2022 as a potential timeline, but it could be the game changer that helps ETH usurp bitcoin.

"I think that's the catalyst for that [flippening],"  Donoghue said. "If we get to the point where people think it [the upgrade] will happen, then that'll be a significant catalyst. It's not far out to a flipping event, [requiring] only about a doubling of ETH's price."

Ether Could Usurp Bitcoin as Most Valuable Crypto by Year End: Expert
 

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Comments (27)
James Stuart
James Stuart May 16, 2021 1:40PM ET
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The US govt is about to increase capital gains tax from 20% to 40%. The investor is going to look for a more secure safe haven like Monero, that can't be hacked, tracked or traced. Good luck for the US Govt finding out who's got what.
Investing Man
Investing Man May 15, 2021 3:22PM ET
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Lets clear one thing up. All crypto is cleaner than driving cash around to ATM machines.
Billy Foos
Billy Foos May 15, 2021 12:34PM ET
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How is an outdated crytpo going to flip btc? If anything, Eth will get flipped prior to ever flipping btc.
Lars Hellman
LarsH May 15, 2021 8:15AM ET
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Thanks Elon for corecting the cryptos so a small retail like me have a chance to catch up.
Rick Baier
Rick Baier May 15, 2021 6:56AM ET
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That's why I bought Ethereum 14 months ago and never sold any of it.
Edward Chong
Edward Chong May 15, 2021 6:56AM ET
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nice
Mike Studer
MikeStuder May 15, 2021 6:56AM ET
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Same for me. Bought at 172 (as well as Ripple), still holding and no plan to sell within another year. This year I bought EOS & Tron for which I think, are having long-term opportunities as well.
Tom Lundgreen
Tom Lundgreen May 15, 2021 6:56AM ET
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https://m.shein.com/us/https://m.shein.com/us/Floral-Lace-Harness-Underwire-Lingerie-Set-p-2352037-cat-1862.html?scici=sidecat_Women~~LINGERIE LOUNGEWEAR~~1_8_14~~real_1862~~~~0https://m.shein.com/us/Floral-Lace-Harness-Underwire-Lingerie-Set-p-2352037-cat-1862.html?scici=sidecat_Women~~LINGERIE LOUNGEWEAR~~1_8_14~~real_1862~~~~0Floral-Lace-Harness-Underwire-Lingerie-Set-p-2352037-cat-1862.html?scici=sidecat_Women~~LINGERIE LOUNGEWEAR~~1_8_14~~real_1862~~~~0
Mart Bab
Rubberduck1973 May 15, 2021 6:54AM ET
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"The investment thesis around bitcoin as 'gold 2.0' or a store of wealth is interesting, but it is a $10 to $12 trillion opportunity," Donoghue added.    Hehehe I say. We are seeing it right how the stored value is maintaining its value. Wishful thinking assets. There is always a forward looking reason to buy crypto. Never a materialized one.
Mart Bab
Rubberduck1973 May 15, 2021 6:54AM ET
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Imagine buying gold as a store of value. And then someone like Elon Musk goes on tv and says gold mining is an energy gosling business. That wouldn’t effect the price of gold now would it?
stella Williams
stella Williams May 15, 2021 4:35AM ET
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how will I received the btc
George Vincent
George Vincent May 14, 2021 8:52PM ET
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Ether will flip bitcoin get ready.
John Ehrensberger
John Ehrensberger May 14, 2021 8:44PM ET
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Unless Elon gets bored and starts tweeting negative nonsense. Can someone tell him to stick to cars and rockets lol
Aaref Awad
Aaref Awad May 14, 2021 8:44PM ET
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he said that Bitcoin uses alot of energy and comparing it to other coins this is true.he said he doesn't want that and that is his choice to do what he wants either sell or buy whenever he wants.
John Ehrensberger
John Ehrensberger May 14, 2021 8:44PM ET
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Aaref Awad You're forgetting one large issue. The money doesn't belong to him. Belongs to the shareholders. He has no regards to the millions of people who he has hurt.
Drew Antone
Drew Antone May 14, 2021 8:08PM ET
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XRP and Cardano ADA use Less Power. Therefore Expansion and Usage of them with Blockchain Technology within will become Obvious Choices for Mass Usage. Elon said himself power usage was reason to not support Bitcoin.
CJ Burton
CJ Burton May 14, 2021 7:56PM ET
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Odd it does not mention a 30% drop down to 3k in less than 2 days... Just that it is back up to 4k!
CJ Burton
CJ Burton May 14, 2021 7:56PM ET
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Odd it does not mention a 30% drop down to 3k in less than 2 days... Just that it is back up to 4k!
CHAD TENDIES
CHAD TENDIES May 14, 2021 7:29PM ET
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Bitcoin bros in absolute shambles
Alejandro Herrera
Alejandro Herrera May 14, 2021 7:02PM ET
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Come on, give me a big BTC sell-off!!! I wanna buy cheap.
Xynorex Xynorex
Xynorex Xynorex May 14, 2021 7:02PM ET
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in 5 years you'll look back and think "wow, it was so cheap back then!". if you want to buy BTC then nows the time to do it
Frankie Frank
Frankie Frank May 14, 2021 7:02PM ET
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Compralo antes que MUSK lo acepta otra vez,y asi precio va ser otra vez alto. Esto es un manipulacion del Mercado asi que,aprovechas ;)
Eric Hay
Eric Hay May 14, 2021 6:50PM ET
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"expert"
Mark Deren
Mark Deren May 14, 2021 6:42PM ET
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Cryptocurrency would be totally useless if the electrical grid went down for any reason for any length of time. Say an EMP blast or sabotage?
Hue Jazz
Hue Jazz May 14, 2021 6:42PM ET
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You can send btc using radio waves
Raffaele Aaron Giampaolo
Raffaele Aaron Giampaolo May 14, 2021 6:42PM ET
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same goes for normal bank accounts. unless you keep all your money in cash under your pillow
tawanchai xoomsai
tawanchai xoomsai May 14, 2021 6:42PM ET
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yes, a worry, esp if nuke war occurs. With cash u can use it promptly
Vv Pp
Vv Pp May 14, 2021 6:42PM ET
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and that was Mark's last comment ever in this app 🤣🤣
Heine Pedersen
Heine Pedersen May 14, 2021 6:18PM ET
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Look at history. And how governments are financed. This is just smoke and mirrors, so that the rich can buy physical assets like gold and silver. Block chain is great. And countries will start issuing their own crypto currencies for fast transactions.
Heine Pedersen
Heine Pedersen May 14, 2021 6:18PM ET
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Cheap gold and silver..
Investing Man
Investing Man May 14, 2021 6:18PM ET
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Not really. Fiat technologies are advancing there is no point to have crypto for an individual country. It's just a debit transaction at that point.
cran Vivid
cran Vivid May 14, 2021 6:12PM ET
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Time to sell ETH for BTC
Robby G hasibuan
Robby G hasibuan May 14, 2021 6:10PM ET
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just because mr elon tweeter, btc go the ravine. that the storm for all btc investors
Eric Th
Eric Th May 14, 2021 6:10PM ET
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ETH gas fees tho!
Kyle Palmer
Kyle Palmer May 14, 2021 6:08PM ET
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ETH is the future, one day it's price will exceed BTC
Kyle Palmer
Kyle Palmer May 14, 2021 6:07PM ET
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ETH is the future, one day it's price will exceed BTC
Kelly Blaq
Kelly Blaq May 14, 2021 6:06PM ET
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how does bitcoin wallet work
Kelly Blaq
Kelly Blaq May 14, 2021 6:06PM ET
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how can we make money online
Erminio Deangelis
Erminio Deangelis May 14, 2021 5:47PM ET
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BTC is about investment not about utility. if I'm in it for that reason I'm sure that's why everyone else is invested in it.
Kelly Blaq
Kelly Blaq May 14, 2021 5:47PM ET
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