Weiss Ratings: This is how the cryptocurrencies cut off

Today, Weiss Ratings published ratings for various cryptocurrencies for the first time. The rating agency would like to make a statement on the creditworthiness of Bitcoin, Ether & Co. and facilitate investors the coin selection. It came to quite surprising results.

How to determine the inherent value of cryptocurrencies While on the one hand there are those who make the value of a coin depending on the market price, the market capitalization or the daily trading volume (24h) dependent, you hear from the other side voices, the crypto currencies - especially the Bitcoin - lump sum deny any eigenvalue. What has to be said about the latter argument 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 cryptocurrency in the form of a rating based on an in-depth analysis of relevant metrics. For this countless data of the coins are to be evaluated, in addition to price movements and trading patterns so also sizes as the technology and the team behind the project are considered.

Weiss Ratings is the first finance rating agency to issue a rating for cryptocurrencies. The procedure is comparable with the determination of the creditworthiness of states and companies, for example, by the internationally known and notorious rating agencies Standard & Poor's, Moody's or Fitch. In contrast to the big market leaders Weiss is rather less well-known and due to past incidents not entirely undisputed . But what result did Weiss Ratings come to?

Ethereum good (B), Bitcoin only satisfactory (C +)
The Bitcoin is rated C ++ - in the school language this would be a "fully satisfactory" rating. Excellent scoring in matters of safety and the spread of adaptation are cited. Negative, however, are the long transaction duration and the high costs. It is criticized that there is no direct mechanism in the Bitcoin network to upgrade the software code.

Ethereum comes off better in the rating and is awarded a rating of a smooth B - the best ranking in Tableau. Especially in comparison to Bitcoin, the second most widely used cryptocurrency has a better upgrade technology and a faster speed.

A relatively good balance of solid values ​​in all categories is attributed to Steem, which is awarded a B-. By contrast, the projects Novacoin and SaluS are handled with a smooth D rating - weak in both technological innovation and adaptation.

"Unfortunately, many cryptocurrencies are heavily hyped and prone to crashes. The market urgently needs clarity, which can only be achieved through stable and impartial ratings. We are proud that we are now the first to offer investors this service to guide them safely through crypto trading. Our ratings are based on hard data and objective analysis. But it will certainly cause controversy, as some reviews will surprise people, "

commented Weiss Rating founder Martin Weiss the results.