Bitcoin remains the most valuable cryptocurrency despite losing two-thirds of its value over the past nine months, while Ethereum has gained against it, leading to speculation about a potential 'flip' in value. Factors contributing to this shift include Ethereum's upcoming software upgrade and its practical applications in decentralized finance and smart contracts, which give it a competitive edge. Economic conditions, such as rising interest rates and a looming recession, are expected to impact both cryptocurrencies, but Ethereum's broader utility may help it maintain a stronger position.

1. By:
www.ProfitableInvestingTips.com

2. Bitcoin was the original cryptocurrency and
has always been the most valuable as
hundreds more tokens have come into
being. In the last nine months Bitcoin has
lost two-thirds of its value.

3. At the same time the second leading
cryptocurrency, Ethereum, has gained in
value against Bitcoin. Proponents of
Ethereum are predicting a “flip” in which
their token actually passes Bitcoin in value.
If this happens, when will Ethereum pass
bitcoin in value and what factors will
contribute?

4. Value of a Cryptocurrency System

5. In regard to Ethereum passing Bitcoin the
issue is not the value of a single token but
the total value of all tokens in a system.
According to Fortune, the most recent
surge in the value of the Ether token has
made a so-called “flippening” closer than
ever.

6. After Ether’s recent uptick in value compared to
Bitcoin the total value of all Ether tokens
versus all Bitcoin tokens is still a bit less than
one half. Part of the optimism about
Ethereum taking over the number one spot
has to do with the upcoming Ethereum
software upgrade. One of the signs of
increasing interest in Ether has been a surge
in call options at the QCP crypto trading shop.
But there is more to the future value of
Ethereum!

8. Ethereum Offers More Than Bitcoin

9. When you look at the total crypto market you
can see that Bitcoin has gone from 70% of
total value in late 2021 to 40% in August of
2022. Some technical crypto traders see a
trend in Bitcoin value (downward) and thus
choose to sell.

10. Those investors who look for some sort of
fundamentals to base their investment on
have been disappointed by Bitcoin which
turned out not to be a store of value as
inflation rages or a safe haven in times of
social and economic distress but rather an
investment that follows the Nasdaq in
lockstep as it rises and falls. We have written
about how Bitcoin could end up as low as
$600 if it falls until it reaches a value based
on its fundamental uses outside of sheer
speculation.

11. Ethereum’s value, we believe, will eventually be
based on its practical uses in decentralized
finance, non-fungible tokens, and the
Metaverse. The smart contracts inherent in
Ethereum give it an advantage over Bitcoin in
the realms of gaming, advertising, supply
chain management, decentralized finance,
and identity management. Its ability to be
used in smart contracts, especially, gives it a
huge advantage over Bitcoin.

12. Eventual Values of Ethereum and Bitcoin

13. The Federal Reserve is raising interest rates
to fight inflation. At the recent Jackson
Hole symposium of the St. Louis Federal
Reserve the Fed rolled out the big guns to
make the point that they will do what it
takes to break inflation even though it
causes the pain of unemployment, an
economic recession, and a falling stock
market.

14. The immediate reaction of the stock market
was to fall several points. Both Ether and
Bitcoin went down by percent as well. It is
our belief that the coming recession and
lower stock market will drag all
cryptocurrencies down as well.

15. What will save the Ether token from falling
as badly as Bitcoin will be that it is used
and will be used even more for the
Metaverse, decentralized finance, and
NFTs with smart contracts making the
Ethereum system ever more useful and
profitable. We expect to see Ether and
Bitcoin merge in value and then the
Ethereum system to become increasingly
dominant and valuable.

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