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Ratings Company Offers First Grades to Cryptocurrencies

Samantha Mitchell

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Cryptocurrency Ratings

One of the global firms that claim to give the Cryptocurrencies first ratings, Weiss Ratings has declared that Ethereum is much better when put in comparison with Bitcoin. The agency that deals with securities ratings announced that it offered Ethereum a B rating due to the fact that it had better speed, a readily advanceable technology, regardless of the many bottlenecks that it encountered.

Because Bitcoin is currently experiencing major hitches in its network that has caused high costs of transactions and delays, it was awarded a fair C+ rating from the rating firm. Bitcoin appears to lack no instant mechanism that it can use to upgrade its software code. This is despite the current ongoing efforts that have been able to register some success.

Elusive A rating

Cryptocurrency Ratings

The agency covered a total of 74 Cryptocurrencies in its ratings, and none of them got a clean A rating. The highest ratings went to Ethereum {B} and EOS. That kind of tough take has characterized the operations of this independent financial rating organization, which has been in operation for a total of 47 years.

A report that was carried out by The New York Times and Barron’s had also noted the lack of Weiss Ratings to give an A rating in its coverage of mutual funds, insurance stocks, as well as other securities. However, investors of foreign Cryptocurrencies were very worried that this agency might have issued negative ratings on the virtual currencies that it covered.

Service attack denials from Korea

In a release that was done on 24th January 2018, the agency stated that the staff spent the whole Tuesday night {23rd January 2018} trying to fend off service attack denials that originated from Korea. They also cited the social media posts from Korea that were asking others to come together and bring down the website belonging to this Florida-based rating firm.

The hackers’ efforts seem to have escalated much further when they broke into the website, stole information from it, before distorting it on social media.

Cryptocurrency standardization

According to Ari Paul, who is the senior investment officer at BlockTower Capital, a Cryptocurrency investment agency, the ratings done by Weiss on the cryptos are a great illustration of the progressing standardization of the Cryptocurrency market. Bitcoin’s rating, for instance, appeared to have suggested a delusion of the key value proposition of Cryptocurrency, even though they appear to have overrated the transaction capacity, and underrated other factors like security, protocol stability, as well as decentralization.

Bitcoin’s dominance

In the midday of 24th January 2018, Bitcoin, which is the largest digital currency in terms of market capitalization, traded at 1% higher, at around $10,955. The second largest digital currency in terms of market capitalization is Ethereum, and it traded about 3% higher at around $1,019.

For the last couple of weeks, the median transaction fee for Bitcoin was above $10 before crushing down to $5 on the 23rd of January 2018. In that contrast, the other leading Cryptocurrency, Ethereum had a median transaction fee valued at about 85 cents on Tuesday. It is also important to note that Ethereum has a totally different technology from that of Bitcoin in that developers can be able to create various apps on the Ethereum network.

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