Today Weiss Ratings published ratings for various crypto currencies for the first time. The rating agency wants to make a statement about the creditworthiness of Bitcoin, Ether & Co. and make it easier for investors to select coins. Thereby it came quite to surprising results.
How to determine the inherent value of crypto currencies? While on the one hand there are those who make the value of a coin dependent on the market value, the market capitalisation or the daily trading volume (24h), on the other hand one hears voices that deny crypto currencies – especially the Bitcoin – any intrinsic value. What is to be held of the latter argumentation has already been sufficiently explained elsewhere.
The American rating agency Weiss Ratings is now taking a different approach. It wants to determine the value of a crypto currency in the form of a rating based on a detailed analysis of the relevant key figures. In addition to price movements and trading patterns, variables such as the technology and the team behind the project are also taken into account.
Weiss Ratings is the first financial rating agency to issue a rating for crypto currencies. The procedure is comparable with the determination of the creditworthiness of states and companies, which is carried out by the internationally known and notorious rating agencies Standard & Poor’s, Moody’s or Fitch. In contrast to the big market leaders, Weiss is less well known and not entirely undisputed due to past incidents. But what has Weiss Ratings come to now?
Ethereum good (B), Bitcoin only satisfactory (C+)
The Bitcoin is awarded a rating of C+ – in the school language this would correspond to a rating of “fully satisfactory”. Excellent scoring in questions of security and the spread of adaptation are cited. However, the long transaction duration and the high costs are of negative significance. In addition it is criticized that there is no direct mechanism in the Bitcoin network to upgrade the software code.
Ethereum is better off in the evaluation and is awarded a rating of a smooth B – the best ranking in Tableau. Especially in comparison to the Bitcoin, the second most common crypto currency impresses with a better upgrade technology as well as a faster speed.
A relatively good balance of solid values in all categories is attributed to Steem, which is awarded a B- for this. The projects Novacoin and SaluS, on the other hand, are handled with a smooth D as the worst rating – weak in terms of both technological innovation and adaptation.
“Unfortunately, many crypto currencies are heavily hyped and vulnerable to crashes. The market urgently needs clarity that can only be provided by stable and impartial ratings. We are proud to be the first to offer this service to investors to guide them safely through the crypto trade. Our ratings are based on hard data and objective analysis. But it will certainly cause controversy, as some ratings will surprise people,