With the sudden public interest in cryptocurrencies, it was inevitable that a cryptocurrency rating company would step into the field and give their expertise on the matter. Therefore, many such agencies have arisen recently, and one of them holds the view that Ethereum has more potential than Bitcoin or Ripple.
The question which comes to the mind is, should you blindly reject their view taking your own personal considerations into account or do they really mean business. Well, this you shall have to decide for yourself as according to a report by the Weiss Ratings, which is a Florida based company, cryptocurrencies are being ranked as per a letter grade assigned to them. This happened around last week, and different considerations like the risk involved, technological innovation, and other fundamentals were taken into account.
If you were to see the report yourself, there is no doubt you would end up a bit shocked. The main reason being, there isn’t an ‘A’ grade assigned to any of the cryptocurrencies! Sounds a bit unusual, right? On top of that, even though Bitcoin is the most expensive cryptocurrency as of now, yet Ethereum was given a higher grade than Ripple and even Bitcoin. But then, there must be reasons for doing so and they sure do have a point. How do we trust the Weiss ratings, that’s the question. As of now, the number of investors and crypto experts who agree with this equal the number of those who disagree with the report.
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According to David Drake, who happens to be a cryptocurrency pundit, the Wiess ratings seem to be very trustworthy. He said that it was the time that someone stepped into the cryptocurrency rating game, and Weiss Rating did for the first time, and now others shall also follow suit.
Affirming the trust spoke, Elliot Prechter who is the Head of Computer Analysis at Elliot Wave. He commented that, “The mere fact that futures exchanges and rating services have finally legitimized investment in cryptocurrencies after nine years of their existence is a strong sign of trend maturation,” He further added, “It is reminiscent of the timing of gold legalization, which occurred at an interim peak in gold that saw it fall in half thereafter.”
On top of this, Al Zdenek, president of Taust Sollus Wealth Management also gave his views on the matter. The fact that Weiss isn’t relatively new and has a good reputation is what Al Zdenek spoke about. According to him, Weiss is used to releasing new rankings in relatively different areas of the markets. Now that the Weiss has released their latest ranking, it so happens to be a cryptocurrency one, so can be trusted like all their other rankings.
On the contrary, he also showed his concerns over the ratings. The main concern is that the cryptocurrency industry is relatively new and is yet to experience further growth. Everyone is trying to compete off with one another, to make space for themselves. Therefore, it doesn’t make sense to actually rank these cryptocurrencies, since you never know what’s going to happen to them. He said that the situation can be entirely different in just a span of a few weeks. Therefore, one needs to take serious consideration if one is considering to invest based on these ratings.
This is because history has shown that with many contenders, only a few are able to survive. He even went on to comment that it’s entirely possible that even Bitcoin wasn’t going to be ranked in the future.
Therefore, be cautious if you are planning on investing in cryptocurrencies solely based on the report.