Topic: [2018-02-08] Weiss Ratings Defends its Decision to Give Bitcoin Only a C+ Grade (Read 110 times)
February 08, 2018, 11:54:29 AM
It seems that no one cares about it (same goes up for me), but with how Bitcoin is growing, and thus manages to catch up on traditional assets more and more, this is something we'll be seeing on a very regular basis. Whether we like it or not, we have to accept it and move on. I agree with 1referee that institutions and all other traditional entities didn't take Bitcoin serious at the beginning, and may have even had a strong dislike towards Bitcoin, but this is the right path towards having Bitcoin become a major asset in the financial world. It's a positive change in overall mentality and development, which is something we can't ignore. Bitcoin will take over, and get accepted as well. It's just a time consuming process -- building a solid foundation doesn't happen overnight.
February 08, 2018, 09:45:22 AM
I never really cared about their rating, but hey, you have to give them credit for actually taking the time to respond. They seem to have done some research, at least.
Still, that doesn't mean people should give a rat's ass about them. Give them enough influence by echoing their rankings, and you're giving them the power to manipulate the market. They've done it before, and they can do it again. It's best to just give them as little word-of-mouth mileage as possible. The stock market don't need these sort of rankings, and neither does the crypto market.
Still, that doesn't mean people should give a rat's ass about them. Give them enough influence by echoing their rankings, and you're giving them the power to manipulate the market. They've done it before, and they can do it again. It's best to just give them as little word-of-mouth mileage as possible. The stock market don't need these sort of rankings, and neither does the crypto market.
February 08, 2018, 09:33:04 AM
Rating my @ss. We don't need whatever shitty non crypto party to rate crypto at all. People shouldn't forget that all those traditional parties were major skeptics before, and they wouldn't give Bitcoin a single chance of succeeding if it was up to them, and now suddenly they have seen the light? I don't buy it. Crypto is hot and booming, while traditional markets are boring and not able to attract the sub senior demographic. Desperate attempt to make themselves get some shine outside their own boring industry.
February 08, 2018, 08:24:17 AM
I don't think people took these ratings very seriously, and the only thing I actually enjoyed because it made me laugh, was to see Dogecoin getting a better rate than bcash. I also don't understand how cardano scored higher than bitcoin, since they don't have a working product yet, unless I'm mistaken.
I understand ethereum getting a better rank than BTC, since it is more stable at the moment and it's community kind of seems more united. The bitcoin forks didn't really had a very good effect on bitcoin in my opinion. Anyway, as they said, if bitcoin solves its technical issues right now, it's score will be revised. As soon as the LN gets deployed I guess that BTC should score an easy A.
I understand ethereum getting a better rank than BTC, since it is more stable at the moment and it's community kind of seems more united. The bitcoin forks didn't really had a very good effect on bitcoin in my opinion. Anyway, as they said, if bitcoin solves its technical issues right now, it's score will be revised. As soon as the LN gets deployed I guess that BTC should score an easy A.
February 08, 2018, 04:11:10 AM
Wall Street is known for being a cut throat place where shrewd business people play as tough as possible in order to make gains or their destroy opponents. However, the crypto ecosystem can be at times far more nasty than any other market. One company that had the audacity to rate everyone’s favorite cryptocurrency somewhat poorly learned this recently, but it still stands by the rankings.
Crypto+
Weiss Ratings, an independent U.S. rating agency which recently issued letter grades for cryptocurrencies has published a new report to explain its decision to score bitcoin a mere C+ (“fair”).
The company obviously felt it needed to counter attack against critics after its rankings caused it to get hurled insults from many cryptocurrency people and opinion leaders on social media. It even suffered a cyber attack which took down the Weiss site temporarily. The 14-page report is meant to answer the outcry by revealing key factors and data behind the rating.
Where is my A?
“For investors,” explains Weiss Ratings founder Martin D. Weiss, PhD, “an A rated crypto would be one that rarely crashes, and right now, there’s no such thing. But we do understand where developers are coming from. They tell us they don’t care about market fluctuations. They feel our ratings should reflect strictly the quality of their work and its relative success in the real world.”
Aiming to address both investors and developers, the Weiss model combines a number of sub-models: Risk and Reward, adapted from its stock and ETF ratings, plus Fundamentals and Technology, which are unique to cryptocurrencies. Here’s how they determined bitcoin performs on each:
Risk and Reward-“Bitcoin investors have recently made less than altcoin investors, while continuing to experience the risk of extreme volatility.”
Fundamentals-“Due credit is given for adoption and security, but Bitcoin loses points on network congestion with just four transactions per second and high fees of about $10 per transaction. In addition, the top five miners control some 70% of total hashpower, also a negative.”
Technology-“Bitcoin lacks the governance needed for prompt upgrades and is falling behind in a rapidly evolving industry.”
Another criticism that was leveled at the agency is that Weiss overweights price volatility. “Not so,” he says. “Our model accurately reflects an inconvenient truth about the market’s extreme swings. But our ratings are continually updated. If prices stabilize or speed enhancements are rolled out successfully, an upgrade is possible.
Source: https://news.bitcoin.com/weiss-ratings-defends-position-give-bitcoin-c-grade/
Crypto+
Weiss Ratings, an independent U.S. rating agency which recently issued letter grades for cryptocurrencies has published a new report to explain its decision to score bitcoin a mere C+ (“fair”).
The company obviously felt it needed to counter attack against critics after its rankings caused it to get hurled insults from many cryptocurrency people and opinion leaders on social media. It even suffered a cyber attack which took down the Weiss site temporarily. The 14-page report is meant to answer the outcry by revealing key factors and data behind the rating.
Where is my A?
“For investors,” explains Weiss Ratings founder Martin D. Weiss, PhD, “an A rated crypto would be one that rarely crashes, and right now, there’s no such thing. But we do understand where developers are coming from. They tell us they don’t care about market fluctuations. They feel our ratings should reflect strictly the quality of their work and its relative success in the real world.”
Aiming to address both investors and developers, the Weiss model combines a number of sub-models: Risk and Reward, adapted from its stock and ETF ratings, plus Fundamentals and Technology, which are unique to cryptocurrencies. Here’s how they determined bitcoin performs on each:
Risk and Reward-“Bitcoin investors have recently made less than altcoin investors, while continuing to experience the risk of extreme volatility.”
Fundamentals-“Due credit is given for adoption and security, but Bitcoin loses points on network congestion with just four transactions per second and high fees of about $10 per transaction. In addition, the top five miners control some 70% of total hashpower, also a negative.”
Technology-“Bitcoin lacks the governance needed for prompt upgrades and is falling behind in a rapidly evolving industry.”
Another criticism that was leveled at the agency is that Weiss overweights price volatility. “Not so,” he says. “Our model accurately reflects an inconvenient truth about the market’s extreme swings. But our ratings are continually updated. If prices stabilize or speed enhancements are rolled out successfully, an upgrade is possible.
Source: https://news.bitcoin.com/weiss-ratings-defends-position-give-bitcoin-c-grade/
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