Ethereum Receives Highest Mark from Cryptocurrency Rating Service

Experts in cryptocurrencies had differing opinions on the value of Weiss's ratings.

Asset ratings have come to cryptocurrencies, and the first agency to do so has ranked Ethereum ahead of bitcoin.

Weiss Ratings, which is a Florida company with a nearly 50-year history of rating financial assets, recently issued letter grades to the leading cryptocurrencies. They did this based a variety of factors, including technical innovation and risk. No cryptocurrency received an A grade, and what has surprised some people is that Weiss has rated Ethereum well ahead of bitcoin. Ethereum received a B grade while bitcoin only received a C+. The rating agency said that they gave bitcoin such a low grade because of structural problems the digial currency is currently experiencing.

Experts in cryptocurrencies had differing opinions on the value of Weiss’s ratings.

David Drake, who is a specialist in cryptocurrency assets, believes that not only are Weiss’s ratings trustworthy, but that its efforts will lead to other agencies issuing their own ratings of cryptocurrencies, which he sees as a good thing. Similarly, Elliot Prechter, who is the head of computer analysis at Elliot Wave, says that the existence of rating services, as well as future exchanges, give cryptocurrencies a certain legitimacy that they didn’t have in their previous 9 years of existence. He compares it to the period in which gold became legal to trade.

However, Al Zdenek, who is president of Taust Sollus Wealth Management, is skeptical of the ratings. While he doesn’t doubt the trustworthiness of Weiss Ratings, which he acknowledges has long had respect in the financial industry, he questions whether the ratings have any significant meaning at the moment. He says this because he believes that cryptocurrencies haven’t been around long enough for anyone to be able to effectively judge them. He further says that he expects to see considerable changes in the market. He says that he wouldn’t even be surprised if bitcoin didn’t rank at all in a few years.

 

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Cryptocurrency

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