Cryptocurrencies has become popular over the recent years. Many questioned its stability but no one, even the world’s super powers can stop it from becoming one of the most tradable instrument. People are not keen with it because it’s a digital currency. It’s difficult to manage, secure and stabilize. Yet, it’s a perfect currency for our digital world as everything now are becoming more digitalized.
Bitcoin is the most dominant and popular cryptocurrency. It seemed like it is unbeatable as it is the first digital currency to emerge and to be established in mainstream. Many other cryptocurrencies have emerged and there is a chance that the balance of power could flip.
“The flippening” is the term used by those who follow the regular developments in the cryptocurrency market for the point where one digital currency supersedes. This almost occurred when Ethereum’s market price approached Bitcoin’s in May 2017 due to its gaining popularity as more traders look for alternatives other than Bitcoin.
Many sides are forming as traders argue over which digital currency will be more popular in the future, however, this is not the main issue. These arguments are just distracting us over a more important issue.
Some opinions say that the true flippening is not over a battle between two digital currencies. This would only have little impact to our financial system. But a more domineering event would be when between the popularity of cryptocurrencies over our traditional fiat currency system.
The emergence of cryptocurrency is a lot more favorable to the major population and not the world leaders as it favors no nation in theory, its value cannot be manipulated as easily compared to the fiat currency we have today and it is universal.
In the near future, shop and service transactions would likely be handled by automated system like everything else. Cryptocurrency removes many of the intermediaries that would take their own cut. It may sound promising to us individuals but becomes problematic as it poses some major challenges for the global economy in its current form.
If the flippening happens between cryptocurrency and our current fiat money it will be difficult to put back the latter in the main stream. Once cryptocurrency gets the throne, the loser will lose its value.
Many things still have to be developed before everyone can use cryptocurrency. Infrastructures among other else is very important to be established. At this point, financial institutions could pivot to gearing towards the digital currencies in time.
Governments and regulatory financial institutions will be hit hard when the time comes because they will lose control over the power of their influence to their country’s currency. Despite this there are news that some of the governments are preparing for the world of digital currencies. Once the change comes it will definitely change the way our financial system works, for the better of for the worse.
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