ETHEREUM has emerged as the main competitor to bitcoin’s crypto market dominance and analysts at Weiss Ratings have given ETH a more favourable score for potential profit than bitcoin.
Ethereum scored a good B rating in the Weiss Cryptocurrency Ratings ranking, boosting confidence in the second most popular token on the market.
The Florida-based company praised the virtual currency for edging out the competition with better technology and faster speeds.
Dishing out ratings on a scale of “A = Excellent” to “E = Very Weak”, Ethereum’s B ranking was the highest score on par only with EOS. None of the 74 rated tokens scored an A.
According to Weiss, the ratings agency will not hand out a single A score until the token volatility that plagues the market dies down.
The company said: “That’s the number one source of misunderstanding between our model’s results and the grades that most folks in the cryptocurrency space expected: That big price volatility.
“That’s the main reason we have no As on our list right now.”
Bitcoin, the monumental token which started it all, scored a fair C+ rating due to “major network bottlenecks”, “delays” and transaction fees.
The agency said: “Despite intense ongoing efforts that are achieving some initial success, Bitcoin has no immediate mechanism for promptly upgrading its software code.”
Weiss’ scores stem from some 50 years in the business, rating over 55,000 institutions and investments for their potential profitability or loss.
Ethereum’s positive score was weighted against a variety of factors such as the Volatility Risk index or technical innovation in the Tech Index.
But some analysts approached the ratings with a degree of scepticism, questioning whether Weiss was right to give bitcoin a lower score than Ethereum.
Al Zdenek, president of Taust Sollus Wealth Management urged investors not to rely too heavily on the rating and approach the market with caution.
cryptocurrency industry being so young and with so many companies vying for space, I am not sure what it means to rank these companies.
“The speed of change in this space renders any ranking irrelevant after a few weeks.
“In any new industry, there tends to be many that enter but few survive.”
However other shave been more enthusiastic and praised the ratings for legitimising an otherwise chaotic market.
Elliot Prechter, head of computer analysis at Elliot Wave, said: “The mere fact that futures exchanges and rating services have finally legitimised investment in cryptocurrencies after nine years of their existence is a strong sign of trend maturation.
“It is reminiscent of the timing of gold legalisation, which occurred at an interim peak in gold that saw it fall in half thereafter.”
Ethereum opened on the markets today at $1,248.04 (£886.93) compared to bitcoin’s opening price of $11,694.47 (£8,310.79), according to CoinDesk.
Source : /finance/city/911544/ethereum-weiss-rating-is-it-better-than-bitcoin-invest-eth-cryptocurrency-exchange
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