The desire for security: Bitcoin Evolution comes

Expectations at the end of 2017 and in autumn 2018 could not be more different. While crypto investors sent their Bitcoins and Ether Bitcoin Evolution at the end of 2017 to dubious ICO sites blindly in anticipation of an increase in the number of ICO pages, today the launch of regulated stock exchanges and financial products is eagerly awaited.

Bitcoin Evolution as a promise of salvation

The numerous scams and stock market hacks as well as the lack of ICO success stories have driven the hunted crypto investors into the arms of the traditional financial sector. It’s better to have the Bitcoin on the bank than the new Hyperupaupa Dupa Coin on their own hardware wallet. Instead The Bitcoin Evolution is a fake trading system of following the narrative of decentralization and the inherent promise of „Cut out the Middleman“, the re-centralization of the crypto market is forced. This may bring tears to the eyes of the crypto-idealist or anarchist – centralized, decentralized, shit-raising. Companies and financial service providers have become aware of this: Only very few crypto investors are concerned with their own control and financial autonomy.

Regulation as a promise of salvation
The big question these days is: How do I get approval from the authorities, whether BaFin or SEC, to get a crypto exchange, a fund or an ICO approved? The blockchain companies can hardly be reproached for this. With the exception of the decentralised stock exchanges, they simply have no choice. Authorities and investors are asking for regulated offers.

The trend is towards nationally regulated crypto-financial products. Whether it’s a Stuttgart stock exchange that wants to offer a crypto trading app with its subsidiary Sowa Labs this autumn, or the other futures contract platforms for Bitcoin futures on the other side of the Atlantic. The stamps „regulated“ and „Made in Germany“ are the best marketing. Accordingly, it would come as no surprise if Stiftung Warentest discovered the crypto sector for itself in the coming months.

More savings bank please!
While LBS Bausparkasse has rockers gangs in its commercials, crypto financial service providers are eager for a Sparkasse Biedermeier image. To stick to the example of the crypto app of the Stuttgart Stock Exchange, this shows itself in the same simplicity:

Only four of the countless crypto currencies can be traded. The private key remains with the exchange. There are no different order types. On the other hand, there is the certainty of knowing that your coins are safe with an institution over 150 years old – convenient and user-friendly.

The confidence problem in the crypto market makes boring but trustworthy offers disproportionately attractive. The crypto economy has forgotten its customers‘ needs due to innovation. The crash is now followed by uncertainty. Consequently, it is precisely this uncertainty that now promises the best business.

It is realism and pragmatism that is entering the crypto mainstream. Contrary to some opinion, this should not be seen as a step backwards, but rather as a correction of the unrealistic expectations that peaked at the end of 2017. The regulated and centrally organised crypto offerings mark much more an intermediate step towards increasingly decentralised offerings in the long term. However, decentralized structures need more time to develop than centralized ones. In the meantime, more and more money will find its way into the crypto market through the hands of fund companies and established financial institutions. This will not be hindered by the further development and progress of the crypto economy. Quite the opposite: the interest in further developing the crypto economy in the native-decentralised sense will be spread over even more shoulders and will be able to inspire even more curious people. What the support wheels of a children’s bicycle are are the regulated financial institutions for the crypto sector – a useful aid for the beginning.

How the crypto currencies perform

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,